Ken Guerra (CRD#: 1337062, a registered representative with Independent Financial Group, LLC (CRD#: 7717) in Grants Pass, Oregon who does business as Investment Resources, Inc., is currently involved in a $100,000 customer dispute over high-risk alternative investments. The claimants allege that they lost some of their retirement savings; the dispute is pending.
Why is this customer concerned about alternative investments? Also known as private placements, alternative investments carry the potential for high returns—but with a high degree of risk. These investments are ostensibly only available to “accredited investors” who have a net worth of $1 million or more and who possess a high degree of financial literacy. In reality, however, investors may not be in such a financially stable position and may be unaware of many of the risks of these investments. As a result, if brokers do not advise them appropriately, investors can find themselves incurring huge losses.
This is not the first time that Ken Guerra has found himself embroiled in a customer dispute over his investment recommendations. On March 25, 2013, clients filed a complaint against Ken Guerra, claiming that he misrepresented a non-traded Real Estate Investment Trust (REIT) that was unsuitable given their investment objectives.
Real Estate Investment Trusts (REITs) allow individuals to buy share in commercial real estate portfolios. These portfolios contain holdings of various properties, including hospitals, hotels, office buildings, and warehouses. While publicly-traded REITs are listed on a national exchange, non-traded REITs are not publicly traded, though they are registered with the Securities and Exchange Commission (SEC). Because they are not traded, they are illiquid investments and not suitable for investors who need easy access to their cash. REITs are appealing to investors because they could potentially pay out steady dividends while acting as a diversification vehicle for one’s portfolio. Still, their high transaction fees and low growth potential can give investors pause. Before investing in a REIT, make sure to thoroughly research the investment opportunity; while your broker is required to recommend investments that are suitable for you, you know yourself and your goals best.
Real Estate Investment Trusts and alternative investments are just some of the securities products that Ken Guerra has offered over the course of his 34-year career in the securities industry. Over his career, Ken Guerra has worked for five firms. In addition to Independent Financial Group, LLC, (CRD#: 7717), he has also worked for:
- ING Financial Partners, Inc. (CRD#: 2882) of Grants Pass, Oregon
- Woodbury Financial Services, Inc. (CRD#: 421) of Oakdale, Minnesota
- MW Management Company (CRD#: 30014) of Euclid, Ohio
- PFS Investments Inc. (CRD#: 10111) of Duluth, Georgia
If Ken Guerra was your broker and you suspect you may have been placed in unsuitable, high-risk alternative investments, don’t hesitate to contact a securities attorney who will fight for your rights as an investor. Call (877) 238-4175 or email email@example.com for your free consultation with the securities attorneys of Fitapelli Kurta.