.D. Vest Customers Allege Karl Ronald Foust Sold Unsuitable Investments
Karl Ronald Foust Jr. (CRD#: 1010291, Boca Raton, Florida) is a prior H.D. Vest Investment Services securities representative. Foust began working at the firm’s Boca Raton, Florida branch on November 5, 2009. Financial Industry Regulatory Authority (“FINRA”) BrokerCheck shows that numerous customers have complained about Foust’s sales practices. Namely, at least seven H.D. Vest Investment Services customers have brought investment-related disputes with allegations against the firm or Foust of misrepresentation and unsuitability. Here is a summary of those disputes:
July 24, 2018 Arbitration
An H.D. Vest Investment Services customer complained about Foust by filing FINRA Arbitration #18-02332. Primarily, the customer alleged that Foust told the customer to purchase Wimbledon Health Partners. However, this investment, according to the customer, was not suitable. Not only that, but Foust allegedly misrepresented the investment when the purchase was made. Because of this, the customer alleged $100,000.00 in damages. A resolution has not been reached in this case.
March 13, 2018 Arbitration
A customer of H.D. Vest Investment Services filed FINRA Arbitration #18-00858 on March 13, 2018. In the Arbitration, the customer claimed H.D. Vest Investment Services or Foust made misrepresentations about the customer’s investments in Wimbledon Health Partners LLC. Foust allegedly had no reason to arrange for the customer’s purchase of those investments because they were not suitable for the customer. As a result, the customer demanded $95,000.00 in damages. While the customer’s allegations may hold true, the claim is pending a resolution.
January 25, 2018 Civil Litigation
On January 25, 2018, an H.D. Vest Investment Services client filed lawsuit #502018CA000791 about Foust’s actions. Notably, the customer contended that Foust recommended that the client’s trustee invest in Wimbledon Health Partners, LLC. However, Foust apparently failed to disclose material information about the issuer. Additionally, Foust failed to disclose that he maintained a relationship with the issuer which posed as a conflict of interest to the customer. Moreover, the customer claimed that Wimbledon defaulted on both a promissory note and a Securities Agreement because it failed to make a balloon payment. Consequently, the customer requested $167,000.00 to resolve the issue.
June 22, 2017 Arbitration
A customer of H.D. Vest Investment Services brought FINRA Arbitration on June 22, 2017. According to the customer, Foust made discretionary trades and other transactions in the customer’s IRA so that Foust could make possibly excessive commissions. Additionally, Foust allegedly executed the purchase of Wimbledon Health Partners, which the customer claimed to be unsuitable and misrepresented. Because of this, the customer requested $35,000.00 in damages.
Other H.D. customers brought similar claims as the ones described above. H.D. Vest Investment Services disaffiliated with Foust on June 25, 2014.
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