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Lee Fotsch: Big River Advisor’s Client Bought GWG L Bond
At least one current or former customer of former Centaurus Financial representative Lee Fotsch (CRD# 2003513) is listed as creditor for an investment in a GWG L bond. Filed with a US bankruptcy court, these records describe an investment of $75,000. Financial Industry Regulatory Authority records show that the Fort Collins-based advisor is the president of Big River Asset Management.
L bonds issued by GWG Holdings, the Dallas-based alternative investment firm that filed for bankruptcy in 2022 while under SEC investigation, may have been unsuitable for conservative and/or inexperienced investors. Investors should be aware that FINRA rules require advisors like Mr. Fotsch to recommend only suitable investments and/or strategies to their customers. What this means, per FINRA Rule 2111, is that they must “have a reasonable basis to believe that a recommended transaction or investment strategy” is appropriate for a given client’s profile. They must determine an investment’s suitability by conducting reasonable diligence into the customer’s experience and objectives. At the same time, FINRA Rule 2150 stipulates that registered representatives must make their recommendations without using “manipulative, deceptive or other fraudulent device[s] or contrivance[s].” FINRA Rule 2010, finally, requires them to “observe high standards of commercial honor and just and equitable principles of trade.” FINRA-registered persons who advise their clients to invest unsuitably may be found liable in the event of losses.
According to the Financial Industry Regulatory Authority, Lee Fotsch holds 11 years of securities industry experience. Based in Fort Collins, Colorado, he has been a broker and an advisor with Cetera Advisors since 2023. He is the president of Big River Asset Management. His registration history includes Centaurus Financial (Fort Collins, Colorado; 2017-2023) and Waddell & Reed (Fort Collins, Colorado; 2011-2017). His credentials include the passage of three securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Combined State Law Examination, or Series 66. He is licensed in Alabama, California, Colorado, Kansas, Michigan, Minnesota, Nebraska, North Carolina, Ohio, Pennsylvania, South Dakota, Texas, Utah, and Wyoming. (Information current as of June 13, 2023.)
Carlson Law has represented at least nine investors in claims against their financial advisors for investments in GWG Holdings Inc. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.