ATTORNEY ADVERTISING

Former Florida-Based Morgan Stanley Broker Andrew Yocum Under Investigation

Our attorneys are investigating former Morgan Stanley (CRD# 149777) broker Andrew Yocum (“Yocum”) for numerous investor claims of unsuitable and overconcentrated investments in oil- and gas- related investments.

Yocum (CRD# 4590723) has had a total of 35 disclosures on his FINRA BrokerCheck report, all of them reported within the last year and all but one pertaining to unsuitable and overconcentrated investments in oil- and gas-related securities.  The outlier is an employment termination by Morgan Stanley due to allegations of unauthorized trading.

Yocum operated out of the Morgan Stanley offices in The Villages, Florida, a planned, age-restricted community primarily populated by retired individuals.

Yocum entered the securities industry in 2002 with A.G. Edwards & Sons (CRD# 4).  In 2007, he started working for Morgan Stanley.  He currently is employed by Summit Brokerage Services (CRD# 34643).  From 2002 to 2015, at both A.G. Edwards & Sons and Morgan Stanley, Yocum was located at The Villages, Florida.

Master limited partnerships (“MLPs”) have been frequently recommended by brokers, especially to retirees and other investors who depend on their investment portfolio for income, due to their high-yields.  The publicly-traded securities are tax-exempt and pass along most of their income to investors, which is what made them so attractive in combination with a seemingly never-ending ascent of gas prices.  Unfortunately, all good things must come to an end and, sometimes, all good things aren’t entirely what they are cracked up to be.

A MarketWatch article from April 2014 warned of the dangers of MLPs, labeling them a creation of the financial industry, a “mousetrap that too perfectly addresses the needs of the average investor in whatever investment climate comes along” and inevitably “gets out of control.”

The MLPs were a solution for investors starving for higher yields when the federal interest rates were at an all-time low.  Additionally, they made mountains of dollars for Wall Street, because MLPs had to borrow money and sell shares to grow, making banks, brokerages, and brokers mountains of money to the tune of close to $1 billion in 2014.

Many brokers got caught up in the façade that was ever-increasing crude oil, improperly recommending master limited partnerships (“MLPs”), bonds, private placements, stocks, and other oil and gas securities to conservative investors.  Regardless, brokers and financial advisors are required to recommend suitable investments to their customers by investigating benefits, risks, tax consequences, and other factors to determine whether the investment is actually a good investment and, once that has occurred, whether or not it is a reasonable investment for a particular investor given the investor’s needs and objectives.

If you lost money investing in oil and gas private placements, publicly-traded drilling partnerships, partnership bonds, or other oil and gas securities you may be entitled to recover some of your investment losses.

For more information about the law firms, the lawyers, and our oil and gas investment practice area, please visit our website at www.oilgasfinraarbitration.com.  Contact Scott L. Silver at (800) 975-4345 for a free, confidential consultation.

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