Texas suspends one adviser, orders second to repay commissions

Texas suspends one adviser, orders second to repay commissions
Mark Trewitt sold private fund that collapsed; Clair Crossland sold risky investments
JUN 10, 2019

The Texas Securities Commissioner has sanctioned two Dallas-area investment adviser representatives for selling unsuitable investments to clients. (More:Finra suspends ex-Morgan Stanley broker who made hundreds of CD trades for elderly client) The state regulator suspended Mark Trewett, who was employed by VGF Advisors at the time of the sales, for selling a private fund managed by Aequitas Management of Portland, Ore. The fund collapsed in 2016. Clients of Mr. Trewett, who was suspended for 90 days, invested $173,306 in the fund, which was half of their liquid assets. Mr. Trewitt also recommended that two other clients, a husband and wife in their 70s who had stated a preference for moderate risk in their portfolio, invest $275,000 in high-risk, illiquid private placement investments, nonlisted real estate investment trusts and business development companies. The couple's investment accounted for 40% of their liquid assets. Separately, the Texas regulator ordered Clair Crossland of Dallas to repay $88,933 to clients who purchased stream-of-income investments tied to the payouts from pensions. The payment is double the amount of commission Mr. Crossland earned from the sales. (More:State regulators urge SEC not to try to block state fiduciary laws) Mr. Crossland is president of LFA IRA, a Dallas investment advisory firm. Mr. Crossland "did not understand the complexities of stream-of-income investments and the risks they posed to his clients," the Texas Securities Commissioner, Travis J. Iles, said in a release.

Latest News

Investing in stocks? Here are the top 8 questions you need to answer before you start
Investing in stocks? Here are the top 8 questions you need to answer before you start

Looking to refine your strategy for investing in stocks in the US market? Discover expert insights, key trends, and risk management techniques to maximize your returns

Indivisible Partners selects DPL to arm advisors for insurance business
Indivisible Partners selects DPL to arm advisors for insurance business

The RIA led by Merrill Lynch veteran John Thiel is helping its advisors take part in the growing trend toward fee-based annuities.

RIA M&A stays brisk in first quarter with record pace of dealmaking
RIA M&A stays brisk in first quarter with record pace of dealmaking

Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.

New York Dems push for return of tax on stock sales
New York Dems push for return of tax on stock sales

The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.

Human Interest and Income Lab streamline workflows for retirement-focused advisors
Human Interest and Income Lab streamline workflows for retirement-focused advisors

The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.