Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority (“FINRA”) has suspended broker Louis Olave from the securities industry for three months and ordered him to pay a $5,000 fine. FINRA sanctioned Mr. Olave because he solicited seven clients to purchase $217,477 worth of Future Income Payments, LLC. This blog has previously written about Future Income Payments, LLC.
Mr. Olave was a financial advisor with Questar Capital Corporation at the time of the alleged conduct. He has since moved to Lincoln Investment.
Iorio Altamirano LLP is interested in speaking with customers of Mr. Olave or Questar Capital Corporation. Contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your legal rights.
FINRA Letter of Acceptance, Waiver, and Consent No. 2020065678101
On April 7, 2021, Mr. Olave and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”). The FINRA AWC alleged:
- Between October 26, 2017, February 27, 2018, Respondent solicited seven investors to purchase $217,477 in securities of Future Income Payments, LLC (FIP).
- Future Income Payments, LLC represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a “pension stream to investors.”
- Future Income Payments, LLC reportedly promised investors a 7% to 8% rate of return.
- Olave received a total of $3,795 in commissions associated with the Future Income Payments, LLC transaction.
- Quester Capital Corporation prohibited its financial advisors from participating in private securities transactions without prior written approval from the firm.
- Olave did not provide notice to Questar Capital Corporation before soliciting his elderly customers to purchase securities of Future Income Payments, LLC.
In April 2018, Future Income Payments, LLC ceased business, owing nearly $300 million in unpaid investor payments to over 2,600 individuals. In March 2019, Future Income Payments, LLC and its owner, Scott A. Kohn, were indicted by a Federal Grand Jury alleging a conspiracy to engage in mail and wire fraud. According to the indictment, Future Income Payments, LLC operated a Ponzi scheme.
When a financial advisor participates in a private securities transaction that is not approved by a firm, it is referred to as “selling away.” The prohibitions on selling away are designed to protect investors by ensuring that all brokers’ activities are reasonably supervised by firms that employ them. Further, securities that are sold away from a firm have not been vetted by the firm.
Financial Advisor Louis Mauric Olave (CRD No. 5904834)
Mr. Olave has nine years of experience in the securities industry and has been associated with the following firms:
- Lincoln Investment in Burlington, VT, from February 2019 to the present.
- Questar Capital Corporation in Burlington, VT, from November 2015 to February 2019.
- Proequities, Inc. in Rutland, VT, from May 2011 to November 2015.
In his nine-year career, Mr. Olave has been the subject of at least four customer disputes:
- Customer Dispute (April 2020): A customer filed a securities arbitration complaint against Mr. Olave alleging $24,000 in damages as a result of Mr. Olave and Questar Capital Corporation’s unsuitable investment advice to purchase $25,000 in securities of Future Income Payments, LLC. The investment represented half of her net worth. An arbitration panel found in favor of the customer and awarded the customer nearly $24,000 in damages.
- Customer Dispute (April 2019): A customer made a written complaint directly to Questar Capital Corporation. The complaint alleged that in April 2018, the client made a $50,0000 purchase, with the proceeds from a surrender annuity, into a structured cash flow offering that was supposed to provide her a monthly income. The client did not receive any income or her principal back. The firm denied the customer any compensation. The customer did not file a securities arbitration complaint and still presumably has legal rights to seek a recovery.
- Customer Dispute (November 2014): A customer made a written complaint directly to Proequities Inc. alleging that the recommendation and sale of annuities were unsuitable given her retirement and liquidity needs. The firm denied her any compensation. The customer did not file a securities arbitration complaint.
- Customer Dispute (November 2014): A customer made a written complaint directly to Proequities Inc. alleging that the recommendation and sale of annuities were unsuitable given her retirement and liquidity needs. The firm denied her any compensation. The customer did not file a securities arbitration complaint.
Questar Capital Corporation: A Duty to Supervise
Financial institutions, like Questar Capital Corporation, must properly supervise financial advisors and customer accounts. Brokerage firms are required to establish and maintain a reasonably designed system to oversee account activity, such as private securities transactions, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Losses or Obtain a Free Consultation
When an investor suffers investment losses due to misconduct by a financial advisor or broker-dealer, the investor can file a securities arbitration claim against their financial advisor and/or broker-dealer in an effort to be compensated.
Securities arbitration is a unique and complex practice area. Investors should seek out experienced counsel who can navigate the arbitration process and effectively advocate on their behalf.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.
If you have lost money with broker Louis Olave, Lincoln Investment, or Questar Capital Corporation, contact New York securities arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.