As many as 30 investors are taking legal action against Metairie wealth management firm NettWorth Financial Group and their parent companies, FSC Securities and Advisor Group.
The plaintiffs allege NettWorth brokers Frank Briseno III and Craig Accardo of steering them toward a number of risky investments which either lost money or failed to create wealth as gains were negated by high fees charged by the brokers.
"A bull market can hide a bunch of unsuitable investment advice," Conway says. "The commissions and fees of these types of products off set any gain that these investors would be making." Conway says brokers Accardo and Briseno should've known better than to push this type of investment product to retirees looking to grow and preserve wealth over a long term. "All of these products, pretty much, have on thing in common, they're illiquid and have commissions and fees that do not benefit the investor."
Conway says the parent company FSC Security should've paid closer attention to what the brokers were doing. "They have duties to these investors," Conway says. "They (FSC Securities and Advisor Group) should've been overseeing what these brokers were doing and they should've known that these non-traded REITs, alternative investments, these variable annuities were unsuitable investment products for the investors."
WWL First News reached out to the attorney representing FSC and Advisor Group, Gregory Curley. He stated the company will mount a defense against the suit, but declined to make any further comments.
The first stop in the matter is arbitration overseen by the Financial Industry Regulatory Authority, FINRA.
