| Ric Edelman Edelman Financial Services |
| Lying to The Public, Irresponsible Financial Advice, Heavy Fines.Penalties |
| 1st of Jul, 2011 by Mahendra Patel |
Ric Edleman, the "Self-Proclaimed" #1 Financial Advisor just got spanked by David Lerner Associates. Common sense tells us that you shouldn't talk about subjects you have no knowledge of. This is especially true when you buy radio air time and try to pass it off as a radio program instead of the infomercial it is.
In a recent radio commercial Ric was trying to explain Apple REITS and he failed miserably. He told his listeners that David Lerner repriced Apple Eight shares from $11.00 to $7.50 and he couldn't have been more wrong. He received a letter from DLA's lawyer demanding a retraction, but instead of being a man about it all he said was "yes I was wrong, DLA didn't reprice the Apple Eight share it was Apple Eight Inc. that did it," Wrong again Ric. The SEC filing was on the book value only. The market value remains at $11.00. I'm a share holder and I called Apple after you reported your lies and they told me the truth. If you don't know the difference between book value and market value then you really shouldn't be giving financial advice to the public. And don't say it's non-traded so there is no market value. I expect that to be your cop-out position.
For those who don't know who this person is, he's a questionable financial advisor with minimal talent. He claims he's consistently voted the nations #1 "Independent" financial advisor, but, is he really independent or is he lying again?
Here is what it says in his brochure on page 6:
http://www.ricedelman.com/galleries/default-file/Edelman-Financial-Services-ADV.pdf:
EFS (Edleman Financial Services) We are primarily owned by the Sanders Morris Harris Group a publicly traded financial services firm located in Houston. Ric Edelman is Chairman, CEO and a minority owner of EFS (Edelman-Financial-Services)
That doesn't sound too independent to me. And even more amusing is he is only a MINORITY OWNER of the company that bares his name. That screams even less independence. I'd say he's lying again or at the very least misleading the public.
Ric also serves as President and Director of Sanders Morris Harris Group who owns a broke dealer named Sanders Morris Harris Inc. This is the only part of their business that is registered with FINRA. Lets see what FINRA has to say about Ric Edleman's Broker Dealer company. These facts can be verified at www.finra.org click broker check, click broker dealer, type the name Morris Harris Group, follow the instructions until you get to the PDF file scroll to page 32 where all the penalties and fines begin.
1. Ric's firm allowed "improper payments" of $325,000.00 to a hedge fund manager as well as distributing investment sales literature without adequately describing the material risk factors to potential investors and allowed an employee to engage in activities he was not registered for. Penalty: Censure and $450,000.00.
2. Account related failure to supervise, negligence, fraudulent activity, breach of fiduciary and unsuitablity. Relief Requested $28,965,392.00. Victim was awarded $498,831.00.
3. Failure to report order events "for several years" in violation on NASD rule 6955(A).
Penalty: Censure and $65,000.00 fine.
4. Sanders Morris Harris Inc. allowed their agents to give financial advice to the public WITHOUT the required registration and licensing exams. (in other words unlicensed and unqualified employees were advising the public). Penalty: Reprimand and $30,000.00 fine.
5. Ric's firm failed to implement or enforce systems to prevent market timing in regards to mutual funds. Penalty: Censure and $45,000.00 fine.
It seems Ric and his employees are not qualified to advise anyone especially in light of these major Securities Law violations.
Ric has a miniscule 15,000 clients and claims to manage 6.5 billion. If you want to challenge a company like David Lerner Inc you need to do your homework. His investors have more in his REIT than your company manages. Throw in the bonds, stocks and mutual funds, hundreds of thousands of clients and his 35 years of outstanding service and you're a mere flea on DLA's backend.
Ive listened to your show and you have clients who've lost enormous amounts in their retirement portfolios due to your advisor's "sterling advice". I've made over 70% in one of my REITS and over 40% in another and haven't lost a dime. I reinvest my dividends to take advantage of "compounding". You advise your clients not to reinvest their dividends, that could be why your whopping 15,000 clients are doing so poorly.
I guess Apple Eight's lawyer will be contacting you next because after your non-retraction you made the same mistake again. But then again your FINRA penalty and fines record shows a pattern of disregard for the truth and the law. |
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| bravo, , , I knew with all the Koolaid that edleman throws out that there was something up, , , he is not in reality, , we are in a bad economy with no cash flow, , small business falling and even The Lodge in pebble beach just went bankrupt, , , opening up 8 more offices for suckers, , , learn to invest yourself, , , listen to bob brinker and do your home work.. don't the edlemans, , , anyone who sells books and lectures is out for your dough, , , do your own investing, , , go the library and learn, , , there are sharks out there, , called ric edleman, , thats the name of that tune, , , , |
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