Texas Securities Commissioner Travis J. Iles
on June 6 sanctioned two Dallas-area investment adviser representatives for
selling unsuitable investments to clients.
The Commissioner suspended
investment adviser representative Mark
A. Trewitt for 90 days for selling unsuitable investments
to clients, including one couple who invested half of their liquid assets in an
Oregon-based private fund that collapsed in 2016.
Trewitt is an investment adviser
representative for Delta
Investment Management LLC of Plano. He told the unsuitable
investments while employed at VFG
Trewitt's clients invested $173,306 in the
fund, which was exactly half of their liquid assets. Investors nationwide lost
as much as $600 million in the fund, which was one of the investment vehicles
managed by Aequitas
Management of Portland, Ore.
Trewitt also recommended that two other
clients, a husband and wife in their 70s who had stated a preference for
moderate risk in their portfolio, invest $275,000 in high-risk, illiquid
private placement investments, non-listed Real Estate Investment Trusts, and
Business Development companies.
The couple's investment accounted for 40% of
their liquid assets.
In a second Disciplinary Order,
the Commissioner ordered Clair
Crossland of Dallas to repay $88,933 to clients who purchased
stream-of-income investments tied to the payouts from pensions. The payment is
double the amount of commission Crossland earned from the sales.
Crossland is president of LFA IRA LLC, a Dallas
investment advisory firm.
Crossland did not understand the complexities
of stream-of-income investments and the risks they posed to his clients.
At the time Crossland sold the investments to
his clients, state and federal regulators had issued warnings about the risks
of the transactions – including the fact that some transactions may be illegal
under federal law – and sanctioned several companies selling investments based
on pension-income streams.
The State Securities Board issued an Investor Alert
about pension advance schemes in 2016.