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WARNING! Impending Investigation–CLAUS C. FOERSTER and RAYMOND JAMES & ASSOC. and MORGAN, KEEGAN & CO.

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23
Jun

WARNING! Impending Investigation–CLAUS C. FOERSTER and RAYMOND JAMES & ASSOC. and MORGAN, KEEGAN & CO.

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Claus C. Foerster, a former investment advisor for Morgan, Keegan & Company and Raymond James & Associates, Inc. has been banned from FINRA for running a $3 million Ponzi scheme.

Foerster opened his own bank account under the name “S.G. Investments” and solicited clients at Raymond James to invest in S.G. Investments, representing it as an “income-oriented” investment.  He then instructed his securities customers to move funds from their brokerage accounts into their own personal bank accounts and then to write checks directly from their bank accounts made out to “S.G. Investments.”   FINRA has alleged that “S.G. Investments” was NOT AN INVESTMENT FUND but rather Foerster’s own personal bank account of which he had full control.

Foerster concealed his scheme by providing fictitious monthly account statements and providing at least two of his victims with purported monthly dividend payments.   FINRA alleges that Claus C. Foerster converted approximately $3 million dollars from 13 customers.  Foerster signed a letter dated June 17, 2014 accepting punishment from FINRA without admitting or denying his actions.

FINRA alleges that Claus C. Foerster’s Ponzi scheme began in approximately 2000.  Foerster was a registered representative of Raymond James & Associates from February of 2013 to June of 2014.  He was registered with Morgan, Keegan & Company from February of 2008 to February 2013.

Broker-dealers like Morgan, Keegan & Company; and Raymond James & Associates, Inc. have a responsibility to adequately supervise all representatives who are registered through their firm, including investments sold by their registered representatives.  Broker-dealers also must take steps to ensure that their financial advisors follow all securities rules and regulations, such as to ensure that investments are suitable for clients.  The securities firm must perform adequate due diligence on an investment before recommending such to a client, so that the firm can adequately explain the risks and characteristics of the investment to an informed client.  When broker-dealers fail to adequately supervise their registered representatives, make unsuitable investment recommendations, or fail to perform adequate due diligence on an investment, they may be liable for investment losses sustained by customers.  If you have been a victim of Claus C. Foerster’s Ponzi Scheme and want to hear about ALL legal options, please visit https://www.israelsneuman.com/or call us at 720-599-3505.

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.
10.0David P Neuman

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