The Texas Securities Commissioner has sanctioned two Dallas-area investment adviser representatives for selling unsuitable investments to clients.
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.
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.