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Blake Fellows Involved in a Dispute Regarding an Unsuitable REIT & BCD

Nov 16, 2021 REITs

Blake Fellows (CRD #: 4374810), a registered broker with LPL Financial, is facing a dispute involving a Real Estate Investment Trust (REIT) and a Business Development Corporation (BDC), according to her BrokerCheck record, accessed on October 27, 2021. Blake Fellows is also a registered investment adviser at Wealthcare Advisory Partners.

Investor Allegations

On September 3, 2021, an investor alleged that in 2014, Blake Fellows, on behalf of LPL Financial, recommended an unsuitable REIT and BCD. The investor further alleged that the investments were not appropriate for their investment objectives and suffered losses. The dispute is pending.

What are BDCs?

FINRA defines a Business Development Company (BDC) as a domestic, closed-end investment company that is operated for the purpose of making equity and debt investments in small and developing businesses, as well as financially troubled businesses. BDCs can be speculative investments that involve significant risks. As a result, BDC investments may not be suitable for all investors.

What are REITs?

A real estate investment trust (REIT) is an entity that holds a portfolio of income-producing real estate properties. A REIT could contain anything from office buildings and other commercial units to apartment buildings or healthcare facilities. By putting their money into a REIT, investors can own a share of those properties. REITs can be unsuitable due to their illiquid nature. Many REITs expect investors to keep their money in the investments for an extended period. REITs may also be unsuitable based on their underlying real estate investments.

If you lost money in unsuitable REITs or BDCs, you might have a viable claim against your broker or broker-dealer, and you should not hesitate to contact the securities attorneys of Kurta Law. 

Unsuitable Investment Recommendations Violate FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor's profile. An investor's profile includes information about their risk tolerance, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

  • Investments can be unsuitable because they are high risk and likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning that they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
  • Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.
  • These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.

Previous Investor Dispute

On April 9, 2007, Blake Fellows was involved in another unsuitable investment dispute. The investors alleged that in 2004, Blake Fellows recommended an unsuitable variable life insurance policy for their son. The investor requested Blake Fellows to lower the death benefit from $1,000,000 to $250,000 and lower their monthly payment from $300 to $200. The dispute was denied, but investors should know that firms may deny disputes with a third-party review. Investors can still recover losses following a denial. 

Blake Fellows Background Information

Blake Fellows has passed the following exams:

  • Series 66 - Uniform Combined State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

Blake Fellows is a registered broker in 17 states and is a registered investment adviser in Virginia.

Besides LPL Financial and Wealthcare Advisory Partners, Blake Fellows has worked with the following firms:

  • Metlife Securities (CRD#:14251)
  • New England Securities Corporation (CRD#:615)
  • AXA Advisors (CRD#:6627)

Kurta Law Can Help

If you have worked with Blake Fellows and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Please contact us today if you would like us to evaluate your potential case.