N.H. Advisor Ordered To Pay $2.4M In Restitution For Client Losses
|By Dave Solomon, The New Hampshire Union Leader, Manchester|
In addition, Rowe and his firm must pay fines and reimburse the state for investigative costs totalling
?While such strategies may be appropriate for clients who have a high tolerance for risk, they are not appropriate for clients with low or moderate risk tolerance,? said Jeff Spill, deputy director of the bureau. ?In spite of this, Rowe applied these strategies to his clientsand held the investments for a longer period than recommended.?
Rowe also was accused of charging unreasonable fees and misrepresenting his credentials. ?He told clients that their fees were being paid to third parties with close connections to
Soon after the state took action against Rowe, he agreed to arbitration with a group of former clients through the
He and his firm filed for Chapter 11 bankruptcy in December, according to his attorney,
?We'?ve agreed to the restitution as determined by the bankruptcy court,? Spill said. ?The agreement is for him to pay us
Tamposi said investors who line up in bankruptcy court will receive a percentage based on the amount of insurance proceeds divided by the total of claims. He said Rowe has insurance worth
?"We'?re in negotiations with the insurance company about that right now,"? he said.
An administrative hearing on the charges against Rowe had been scheduled for Monday, but an agreement was reached over the weekend.
"?The stipulation we just entered into speaks for itself,"? Tamposi said. ?"It?'s detailed and was the result of extensive negotiations.?"
The case against Rowe involved at least 11 different investors, including a 67-year-old widow from
The investments Rowe made were legal, but he failed to disclose their true nature to his investors, the state charged.
?Instead, clients were charged for investment strategies that were totally unsuitable and were not being told the entire truth about the fees charged and the investment strategies employed.?
(c)2013 The New Hampshire Union Leader (Manchester, N.H.)
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|Source:||McClatchy-Tribune Information Services|