According to the Financial Industry Regulatory Authority (FINRA) Wisconsin-based Cambridge Investment Research, Inc (Cambridge Investment) broker, Eric Wegner(Wegner), has had five (5) customer complaints made against him. Some of the customer complaints reportedly alleged Wegner made unsuitable investments and/or made false statements concerning investments. Many of the customer complaints dealt with recommendations in private placements such as tenants-in-common (TICs).
Wegner has been registered with the securities industry for fifteen years. From 2002 until 2008, Wegner was registered with Sammons Securities Company, LLC; From 2009 until 2011, he was registered QA3 Financial Corporation; From 2011 until 2013, he was registered with Sigma Financial Corporation; Wegner is currently registered with Cambridge Investment out of Delafield, Wisconsin.
In a 2013 complaint a customer alleged Wegner misrepresented an unsuitable investment and negligently breached his fiduciary duty in connection to a TIC investment sale. The complaint was settled for $250,000. In a complaint filed in 2015 a customer made similar allegations against Wegner in connection with investments in real estate securities. The customer seeks $250,000 in damages in a pending complaint.
Investments in TICs tend to be inappropriate investments for individuals with moderate risk tolerance. Brokers are often incentivized to recommend these programs because of the high commission rate the investments carry (often 7-10%). When a broker recommends that a client purchase or sell a security, the broker must have a reasonable basis for believing that the recommendation is suitable for the investor. In making this assessment, a broker must consider the investor’s income and net worth, investment objectives, risk tolerance, and other security holdings.
If you believe you have been the victim of stockbroker misconduct, you may wish to consult an attorney to find out more about your legal rights and options. Investors may contact a securities arbitration attorney at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.