Richard Evan Baer, Broker with Lion Street Financial, Facing Multiple Customer Disputes Seeking Over $1.75M Collectively

Baer is accused of making material misrepresentations and committing elder abuse.

Richard Evan Baer (“Rich Baer”) (CRD: 848798) is registered as a broker and investment adviser with Legacy Capital Group California, React Investment Solutions, LLC, and Lion Street Financial, all located in Los Gatos, California.

Baer has been registered as an investment adviser with Legacy Capital Group California since 1997. 

Baer has five disclosures on his BrokerCheck report.

August 2020 Customer Dispute

• Status: Pending
• Allegations: Unsuitable recommendations, material misrepresentations, elder abuse.
• Damage Amount Requested: $850,000.00

September 2019 Customer Dispute

• Status: Pending
• Allegations: Client alleges fraud, negligent misrepresentation, negligent infliction of emotional distress, breach of fiduciary duty, general negligence, negligent supervision, elder abuse in violation of welfare institutions cod ss15600
• Settlement Amount: $1,000,000.00

June 2018 Customer Dispute

• Status: Settled
• Allegations: Claimant is alleging that Mr. Baer violated his fiduciary duty and is seeking damages, punitive damages, interest, and attorneys fees from Lion Street Financial and Mr. Rich Baer.
• Damage Amount Requested: $250,000.00
• Settlement Amount: 115,000.00
• Broker Comment: Mr. Baer and Lion Street deny any liability for losses incurred by Claimant in the one investment at issue. The investment was not recommended or purchased through Lion Street Financial. It was sold to Claimant through Mr. Baer’s RIA.

March 1993 Customer Dispute

• Status: Settled
• Allegations: That recommendations were made against investing mutual funds and instead recommended investing substantial amounts in real estate limited partnerships. In a charitable remainder trust, IRA rollover and personal account that I abused the trust and confidence by recommending these investments which they placed $1,200,000. They are requesting $220,000 in damages.
• Damages Amount Requested: $220,000.00
• Settlement Amount: $15,000.00
• Broker Comment: Richard Baer’s portion of the settlement was $15,000. Copy of settlement attached. The [customers] brought an action for investments made in limited partnerships with prior broker dealer. Investments were made in 1990. They alleged losses of $200,000. These investments comprised less than 20% of their investment portfolio and were part of a financial plan involving tax savings in excess of $150,000. For more information, see copy of attached settlement agreement. 

June 1992 Customer Dispute

• Status: Settled
• Allegations: Former business associate of mine & I were accused of not disclosing the tax consequences of surrendering a deferred annuity policy. Tax liability was approximately $76,000.00. Although the client initiated the sales inquiry, she alleged that she received incorrect advice.
• Damages Amount Requested: $81,336.21
• Settlement Amount: $55,000.00
• Broker Comment: Claim was settled for $55,000 and an unconditional general release was signed by the claimant and her counsel on 8/26/93. In 1990, the client called her stock broker, my former business associate, with concerns about insurance company safety. Executive Life & others had been tkane over by the state. Client was told that her insurance company wasn’t highly rated. She could either rollover to another (tax-free) or surrender & reinvest. She chose the latter & didn’t allow our firm to handle the surrender. Therefore, our fail safe procedures were not followed & high tax resulted. Settlement was reached to avoid expensive NASD hearing out of state.

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Rich Baer. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.