Energy Stocks: Problems with Cetera Investments and George Merhoff

Investigation: Cetera Investments and George Merhoff

At the request of our clients, we are investigating Cetera Investments and its representative George Merhoff Jr. regarding concerns that the investment portfolios held at that firm were overly concentrated in energy stocks. Investors report to us that they have suffered significant losses as a result of having virtually all their investments in energy company investments. We are evaluating how widespread the problem is for our clients.  We also want to compare similarities of our clients’ investment portfolios to those of other clients of Cetera Investment where George Merhoff was the advisor. Please feel free to contact our office if you are willing to share information that might assist our clients and us in this investigation. You may remain anonymous if you prefer.

Is Your Account Concentrated In Energy Stocks?

Here is why we are conducting our investigation: When a portfolio is heavily weighted in one particular industry sector, we refer to it as a non-diversified, over-concentrated account. Over-concentration increases volatility and risk in investment portfolios. Licensed securities stockbrokers and have an obligation under the law and FINRA Rule 2110 to recommend only suitable investments and trading strategies, based upon the particular customer’s risk tolerance, investment objectives, investment experience, time frame, and other factors when recommending an investment. If a broker recommends the same types of concentrated energy sector portfolios to a broad array of clients, regardless of their needs for safety and moderation, that suggest that the securities laws may have been violated.

FINRA BrokerCheck Reveals Customer Complaints

Mr. Merhoff and Cetera are both registered with the Financial Industry Regulatory Authority. Mr. Merhoff’s (CRD#2918171) FINRA BrokerCheck report reveals six prior disclosure events. He previously was registered with Pacific West Securities Inc. in Klamath Falls, Oregon. Cetera Investment Services (CRD#15340) operates out of St. Cloud Minnesota, and has offices in Oregon. Their BrokerCheck report shows 26 disclosure events including claims of breach of fiduciary duty and failure to supervise.

Do you have questions about losses in accounts managed by Cetera Investments or George Merhoff?

The fact that you invested with Mr. Merhoff or Cetera does not necessarily mean that there was wrongdoing. However, if your account was over-concentrated in energy stocks and you did not ask for those investments, we would like to hear from you. Bob Banks, a nationally recognized securities attorney who is listed in SuperLawyers and Best Lawyers In America, has fought for investors in court and FINRA arbitration since 1985.  He has successfully represented investors in over-concentration cases where there has been a failure to diversify investments. He leads the Investor Defenders practice group at Samuels Yoelin Kantor LLP. If you have lost money in an investment, or if you have any concerns about the conduct of your financial adviser, please contact us or call our office at 800-647-8130 for a free no obligation consultation.

Investment Losses in Oil, Gas, and Energy Driving Down Your Retirement Savings?

You might have a claim to recover your loss in oil, gas, or energy stocks.

If you have concerns about the effect that oil, gas and energy stocks and investments are having on your retirement savings, we are happy to provide a free and confidential review of whether claims may exist based on your investments, and whether you have a right to recover your losses.

Investments in oil and gas stocks and partnerships have taken a real hit lately. Energy stocks in general have as well. However, if your financial advisor has properly allocated and diversified your retirement savings, you should not see a significant decline in your savings because of these investments. That is because oil, gas and energy stocks should only represent a small portion of your retirement savings, unless you specifically instructed your advisor to overweight your savings with those investments.

We have received calls from very concerned investors this month, who tell us that their accounts have lost 50% or more in value in recent months. The reason is that they were grossly over-concentrated in energy stocks. We have been retained to investigate and file claims against advisers who have invested too much of their clients’ savings into the energy sector. Among others, we are investigating portfolios managed by Cetera Advisors and George Merhoff, based in Colorado and Oregon, respectively.

Since 1985 Bob Banks Jr. has fought on behalf of investors nationwide in court and FINRA arbitration. He leads the Investor Defenders team at Samuels Yoelin Kantor, LLP. He has represented many investors on claims to recover investment losses resulting from over-concentrations. If you’ve lost money in an investment, or if you have concerns about the conduct of your financial adviser, he will speak with you directly. Please contact us or call our office at 800-647-8130.

The North American Securities Administrators Association Nation (NASAA) and the Securities Exchange Commission (SEC) have published the linked informational articles about energy stocks. Please understand, while filing a complaint with these agencies is helpful for future investors, it is not likely to result in any loss recovery for you, and it does not stop the applicable statutes of limitation from running. Those time periods do not stop running until a lawsuit or FINRA arbitration claim is filed.