INVESTOR ALERT: FINRA Suspends HEATH BOWEN For Failing To Pay Arbitration Award

The Financial Industry Regulatory Authority (“FINRA”) suspended Allegis Investment Services LLC president and general securities representative Heath Shayne Bowen (CRD#: 4824684, Idaho Falls, Idaho). FINRA claimed that Bowen did not comply with FINRA Arbitration #18-02355. In that matter, FINRA Arbitration Panel issued a Stipulated Award, making Bowen responsible for paying $385,000.00 to clients for breach of contract. Evidently, Bowen’s suspension began on April 16, 2019 and will not end until he pays the client damages.

Arbitration Panel Finds Heath Bowen Liable For Fraud, Breach Of Contract

Previously, FINRA suspended Bowen because on the same issue – his failure to pay an Award. Apparently, FINRA Arbitration #17-03131, clients claimed Bowen committed fraudulent and deceitful activities, and breached a contract under which the client was a party. The Arbitration Panel determined Bowen owed the client $575,000.00. Notably, Bowen’s suspension, which became effective July 10, 2018, is still in effect.

Colorado Division Of Securities Orders Heath Bowen To Pay Restitution For Investors Injured By His Fraudulent Investment Strategy

Apparently, Colorado Division of Securities entered a Stipulation and Consent Order in Matter #2017CV31584. The Order required Bowen to pay $300,000 to investors because of Bowen’s fraudulent sales practices violating Colorado Securities Act. The Commission also required Bowen to cease financial advising activities in Colorado and never reapply.

Colorado Division of Securities contends that Bowen marketed a complex and risky net credit spread options strategy. Specifically, this strategy involved buying and selling the same type of options contract, where the difference from the sale proceeds and the purchase price was designed to produce a net credit of funds. Supposedly, Bowen misrepresented the risks of investments used in this strategy. Additionally, the Division of Securities claimed Bowen mostly targeted elderly investors for the risky options strategy. Supposedly, Bowen promised investors 10-12% annual returns. However, trades produced losses which ranged from 40-100% of the client’s account value.

At least four clients brought claims regarding Bowen’s sales practices, according to FINRA BrokerCheck. Here is a summary of those complaints:

March 3, 2018 Arbitration Involving Heath Bowen’s Unsuitable Options Strategy

 

A client of Allegis Investment Advisors LLC filed AAA Arbitration #01-18-0000-6514 on March 3, 2018. Primarily, the client claimed that Bowen set up a bad options strategy in the client’s account. Apparently, this strategy was unfitting for the client’s objectives. Not only that, but the client claimed that Bowen’s trading caused the client to sustain investment losses. Records show that the client alleged $121,672 in damages. While the client’s unsuitability claim may be true, the matter is unresolved.

December 11, 2017 Arbitration Alleging Unsuitable Trading, Misrepresentation

 

An Allegis Investment Advisors client filed FINRA Arbitration #17-0006-2675 on December 11, 2017. Supposedly, Bowen used an unsuitable investment strategy with this client like he had with the other Allegis client. However, this client also claimed that Allegis Investment Advisors or Bowen misrepresented information about the strategy. Eventually, Bowen’s trades produced losses for the client. Therefore, the client demanded $64,000 in this ongoing matter.

September 29, 2017 Arbitration Alleging Heath Bowen Misrepresented Investment Strategy

 

Evidently, a third Allegis Investment Advisors client contested Bowen’s sales practices. Specifically in FINRA Arbitration #17-02268, brought September 29, 2017, the client claimed misrepresentation and unsuitability. Like the other clients, this client was allegedly placed in an unreasonable and misrepresented investment strategy where trading produced losses. Because of this, the client alleged $456,529 in damages.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Experienced losses from Allegis Investment Advisors’ Heath Bowen or another securities broker who sold you misrepresented or unsuitable securities? If so, contact Soreide Law Group at (888) 760-6552 and speak with our qualified counsel about a possible recovery of your losses. Soreide Law Group represents clients nationwide and only charges a fee upon recovery of losses.