Jeffrey Brian Forehand, Broker with First Allied Securities, Named in Customer Dispute Alleging Recommendations of Unsuitable, High-Risk Investments

INVESTORS: First Allied Securities broker Jeffrey Brian Forehand was named in a customer dispute alleging recommendation of unsuitable, high-risk investments.

Jeffrey Brian Forehand (CRD#: 1618003) is registered as a broker with First Allied Securities, where he’s been employed since 2008. Previously, Forehand was registered as a broker and investment adviser with FFP Securities from 2004 until 2008.

Forehand has seven disclosures on his BrokerCheck report. Two customer disputes filed against Forehand were denied. One customer dispute occurred over 30 years ago.

March 2021 Customer Dispute

Status: Settled

Allegations: Claimant alleges that he purchased an unsuitable, high-risk investments. Claimant alleges the recommendation constituted breach of contract, negligence, and failure to supervise.

Damage Amount Requested: $330,000.00

Settlement Amount: $14,600.00

Broker Comment: All investments I recommended to this client were suitable and consistent with the clients risk tolerance and investment objectives. The client was well aware of the risks of investment in real estate. Before investing we discussed real estate declines in 1986 due to tax reform, and the 2008 mortgage crisis. The client’s previous three real estate investments with me made a profit. While it is unfortunate that this particular real estate investment did not perform as expected primarily due to Covid19. The case was settled by my broker dealer firm to avoid the costs and uncertainties of arbitration. I did not contribute to this settlement.

July 2002 Customer Dispute

Status: Settled

Allegations: Customer alleges that variable annuity sub-account allocations since February 2000 were unsuitable. Damages unspecified, but believed to be over $5000.

Settlement Amount: $20,500.00

March 1993 Regulatory Judgment

Status: Final

Initiated By: National Association of Securities Dealers, Inc.

Resolution: Consent

Sanctions: Monetary/Fine

Amount: $6,000.00

Sanctions: Censure

Broker Comment: The fixed annuity I sold was the best in the country per consumer report. It was a guaranteed product backed by the S.C. State Guaranty, My firm’s products were below this standard. I was not willing to compromise my client’s best interest.

July 1992 Employment Separation After Allegations

Firm Name: Wheat First Securities

Termination Type: Permitted to Resign

Allegations: Engaged in sale of insurance/annuities without approval of Wheat First Securities.

Broker Comment: Terminated from employment I had no idea that in helping my clients fill their needs htat I could be fired from my job at Wheat First. I have not generated income for two weeks and when I can perhaps, 1 ½ months may pass. I am very sorry this happened and was too naive as to the severity of this occurrence. Due to the loss of income & clients I hope you see I have paid quite a price.

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