Thomas Hayes, former broker with Bosc sued by Bernalillo County over bond portfolio losses.
On November 20, 2014 the state of New Mexico’s Securities Division issued an opinion and notice of contemplated action against Thomas Hayes, a former registered representative with Bosc, Inc., as well as Bosc, Inc. for making unsuitable investment recommendations on behalf of the Bernalillo County Treasurer’s office.
The Securities Divisions’ complaint stems from an investigation into portfolio losses suffered by Bernalillo County via its investments in Fannie Mae and Freddie Mac bonds. The investigation found that the portfolio constructed by Hayes exposed the county to significant risk, far outweighing any potential gains expected to be realized. In order to mitigate the risk, the county sold the portfolio and incurred a $16 million loss
The opinion issued by the securities division concluded that Hayes’ recommendations were unsuitable and that he lacked a reasonable belief that the county managers overseeing the investment program were able to evaluate the strategy and the risks thereof.
As a result of the opinion and notice, Hayes left his employment with Bosc, Inc., a firm he had been affiliated with for 14 years
Thomas Hayes’ registration and disciplinary history
In order to lawfully sell investments to the public, one must either be registered or exempt from registration. As of October, 2016, Hayes is not licensed with any FINRA firm.
According to FINRA’s CRD disclosure report, Thomas Hayes has been the subject of one customer complaint and one regulatory investigation.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
When investors contact our firm they can expect prompt attention, and a detailed analysis of their issues. Typical claims that we are asked to review involve “unsuitability (where a financial advisor makes investment recommendations that are inconsistent with a customer’s investment objectives), claims for “churning” (where a broker enters into an excessive number of trades for the purpose of generating commissions), claims involving illiquid investments such as private placements (I.e., real estate investment trusts, limited partnerships, equipment leasing and oil and gas drilling programs) as well as claims for violations of state securities laws, which often provide investors remedies like attorney’s fees and interest, if they are successful on the claim.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.