Broker To Pay $331k For Unsuitable Investments

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Broker To Pay $331k For Unsuitable Investments

A FINRA Arbitration panel ordered Frederick Baerenz, president and CEO of AOG Wealth Management, to pay $331,000 in compensatory damages after finding him liable of unsuitable trading. Baerenz allegedly misled his investors, Barbara and Roger Bond, regarding the risks of their direct private placements while investing in them between 2006 and 2008. Of the $1.3 million that was invested, Baerenz placed roughly $941,000 in private placements, according to Todd Zuckerbrod, the couple’s attorney.

“Even though the clients had signed a form saying that they know they are getting a high-risk investment, the panel thought it did not insulate the broker that they were unsuitable investments and he shouldn’t have done that,” Zuckerbrod said.

Baerenz disagreed: “While we believe that there should have been no award, we are gratified that the panel rejected two-thirds of their damage claims,” he said.

The Claimants asked for about $1 million in damages but were awarded $331,000, and any other relief including punitive damages was denied.

The Claimants filed their complaint in early 2015, and subsequently Baerenz tried to have it dismissed twice. He also tried to have the case expunged from his record but was unsuccessful.

Baerenz was registered with Pacific West Securities, which closed in 2012, at the time of the alleged misconduct, according to FINRA’s BrokerCheck.

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.

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