Soreide Law Group is evaluating possible investor claims against securities broker Robert “Rusty” Tweed (CRD#: 2339324, San Marino California). Apparently, the securities broker, who has worked for Concorde Investment Services and Cabot Lodge Securities, is entangled in investor disputes. Moreover, he faces disciplinary action from the Securities and Exchange Commission (the “SEC”), and is now barred by the Financial Industry Regulatory Authority (“FINRA”). Namely, these disclosures suggest that Tweed sold unsuitable and misrepresented products including investments in Athenian Fund, LP.
Concorde Financial Services Client Alleges Rusty Tweed Sold Misrepresented Investments
Apparently, a client of Concorde Financial Services brought FINRA Arbitration #: 19-01899 on July 9, 2019. Namely, the client alleged that Rusty Tweed misrepresented important information about the client’s direct investment purchase. It appears that the client purchased limited partnership interests or direct participation program products because of these misrepresentations. Also, the client suggested that Tweed’s investment transactions were not suitable for the client. For this reason, the client demanded $1,423,796 to resolve this matter. Apparently, this matter is awaiting resolution.
Tweed Allegedly Makes Bad Investment Recommendations To Client
Evidently, on April 22, 2019, one of Rusty Tweed’s clients brought FINRA Arbitration #: 19-01101. Allegedly, Tweed gave unsuitable advice about real estate investments and securities offered through a private placement. Supposedly, Tweed failed to have a reasonable basis to believe that his recommendations were appropriate in consideration of the client’s investor profile. It appears that Tweed disregarded the client’s risk tolerance, liquidity needs or overall goals. Apparently, the client demanded $500,000 in damages stemming from Tweed’s allegedly unsuitable recommendations.
Concorde Client Indicates Rusty Tweed Made Unreasonable Sale Of Vertical US Recovery Fund II
Apparently, a third dispute reported on Rusty Tweed’s FINRA BrokerCheck Report comes from a Concorde Investment Services client. Specifically, in the May 9, 2018 complaint, the client alleged that Tweed sold or recommended Vertical US Recovery Fund II which poorly performed. Supposedly, Tweed misrepresented this investment. For this reason, the client seeks compensatory relief in this pending matter.
SEC Charges Tweed And Tweed Financial Services With Misleading Investors
Evidently, SEC brought a civil action against Rusty Tweed and Tweed Financial Services (“TFSI”) on October 2, 2017 alleging violations of securities laws relating to a scheme with promissory notes. Allegedly, Tweed told investors false information about one of the funds TFSI managed called Athenian Fund, LP. Apparently, Athenian Fund was designed to pool investors’ funds for placement in a different fund that supposedly used a quantitative stock trading strategy. Allegedly, Tweed sold 22 of his clients a total of $1,700,000 in Athenian Fund.
Rusty Tweed Allegedly Falsifies Client Statements To Conceal Losses
Also, SEC claims that without investors’ knowledge or consent, Tweed moved their money to Quantitative Analytics Master Fund (“QAMF”). The Complaint alleges that Tweed’s acquaintance ran QAMF.
Notably, 40% of the money Athenian allegedly directed to QAMF was not invested properly. Instead of investing in stocks, QAMF loaned money to a third party. After receiving a portion of funds back from QAMF, Rusty Tweed invested Athenian Fund in a software business. Supposedly, Tweed’s friend ran that software business. SEC says that QAMF and the software business were not profitable. Allegedly, this generated $800,000 in losses.
In addition, SEC says that Tweed did not tell investors about unprofitable investments or that he was using a different strategy than what Athenian’s private placement memorandums conveyed. Also, Tweed supposedly fudged the numbers on the unprofitable investments when providing investors with statements. Apparently, Tweed only identified losses after SEC investigated him. The SEC’s matter is underway.
FINRA Bars Tweed For Misleading Investors
In addition, FINRA barred Rusty Tweed for making misleading and false statements about Athenian. FINRA says in an Extended Hearing Panel Decision dated July 5, 2018 that Tweed misled investors about fees and costs and who controlled Athenian’s trading. Tweed violated Securities Act of 1933 and FINRA Rule 2010, according to FINRA. Not only did FINRA bar him from the securities industry, but it fined him $50,000.
Have you experienced losses from securities broker Rusty Tweed and TFSI? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.