ERCER HICKS (MERCER HICKS III, TOBY MERCER HICKS III, TOBY HICKS III) CRD# 245170, was recently named in a complaint filed by the Financial Industry Regulatory Authority’s Department of Enforcement, alleging that Hicks made unsuitable recommendations to five of his senior clients, including three widows, and made high-risk investments that violated FINRA rules and cost the seniors thousands of dollars. According to the report, allegedly the five senior clients were not seeking to make speculative, high-risk investments. When Hicks first recommended non-traded REITs (real estate investment trusts) and non-traded BDCs (business development companies) to them, their ages ranged from 73 to 87 years-old. None of them were employed. The clients’ account documents indicate they were seeking either to preserve their capital or to have their capital appreciate.
Allegedly, MERCER HICKS, between June 1, 2014, and July 31, 2017, recommended the senior clients purchase nontraded REITs and nontraded BDCs. According to FINRA, he “failed to conduct reasonable due diligence on the REITs and BDCs and failed to understand the risks and features associated with those investments before recommending them to his customers.”
According to the FINRA report some of MERCER HICKS’ elderly clients had difficulty liquidating the investments to obtain funds that they needed to pay for medical care.
MERCER HICKS allegedly recommended purchases of unsuitable non-traded REITs and non-traded BDCs to the five senior clients totaling approximately $665,000. According to FINRA, Hicks received a seven percent commission from each sale, totaling approximately $46,550. Hicks allegedly found his clients primarily by cold calling telephone numbers on club directories he obtained around his North Carolina community.
According to FINRA’s BrokerCheck, MERCER HICKS has 9 Disclosures on his report. There are 3 “Employment Separation After Allegations.” In the separation from Robert Thomas Securities in 1997, he was discharged for allegedly not following the firm’s policies. In 2009, he was permitted to resign from Cantella & Co. following allegations that he charged incorrect fees and put clients’ initials on paperwork improperly. Hicks was discharged from Capital Investment Group following allegations that Hicks misrepresented himself as his client to an insurance company. There are also five Disclosures which allegedly relate to judgments and liens.
MERCER HICKS most recently has been registered with:
04/2014 – Present SOUTHEAST INVESTMENTS, N.C. INC.CHARLOTTE, NC
09/1987 – Present HICKS FINANCIAL GROUP PINEHURST, NC
04/2009 – 04/2014 CAPITAL INVESTMENT GROUP, INC.RALEIGH, NC
If you or an elderly family member have experienced losses due to the actions or recommendations by North Carolina broker, MERCER HICKS, currently with SOUTHEAST INVESTMENTS of Charlotte, and HICKS FINANCIAL GROUP of Pinehurst, contact Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee basis and represents clients nationwide before FINRA.