The Securities Lawyers at Halling & Cayo, S.C. have filed a FINRA arbitration claim on behalf of a senior investor and retired small business owner in California against Park Avenue Securities, LLC. The claim alleges that the brokerage firm failed to supervise its registered representative, Andrew Roberson, who allegedly recommended a fraudulent “solar tax credit” scheme that resulted in the total loss of the investor’s retirement savings.
If you were a client of Andrew Roberson or Park Avenue Securities and invested in Benison Resource Co., H2 Solis, LP, or other “solar programs,” you may have a claim to recover your losses. Contact The Securities Lawyers today for a free consultation.
The Allegations: “Financial Planning” for a Phantom Investment
According to the Statement of Claim, the investor sought professional financial advice to protect proceeds from the sale of a small business—funds intended to support a retirement. The claimant alleges that their trusted advisor at Park Avenue Securities, Andrew Roberson, recommended a “solar program” strategy that promised significant tax savings and guaranteed returns.
The claim details how the broker instructed the investor to wire substantial funds to entities named “Benison Resource Co” and “H2 Solis, LP.” Critically, the claim alleges that Park Avenue Securities directly charged and accepted a fee for “Financial Planning” in connection with this advice.
However, investigations cited in the claim suggest that these solar investments were a sham. The entities reportedly have no web presence, no employees, and in the case of H2 Solis, were not even registered legal entities at the time the funds were wired. The “guaranteed” returns never materialized, and the claimant’s funds have reportedly vanished.
“Selling Away” and the Duty to Supervise
The primary allegation in this case centers on “Selling Away” and Failure to Supervise.
“Selling away” occurs when a broker solicits a client to purchase securities not approved by the brokerage firm. However, brokerage firms are not absolved of liability simply because an investment was not on their approved list. FINRA Rule 3110 requires member firms to establish and maintain a system to supervise the activities of their associated persons.
The Statement of Claim argues that Park Avenue Securities missed numerous red flags, including:
- The “Financial Planning” Fee: The firm allegedly accepted a direct payment for the very financial plan that recommended the fraudulent solar scheme.
- Email Usage: The broker allegedly used his official Park Avenue Securities email address and signature block to facilitate the outside transactions, creating the impression that the investment was sanctioned by the firm.
- Off-Site Supervision: Regulators have long warned that brokers operating from remote offices require heightened supervision to prevent exactly this type of misconduct.
The claim asserts that Park Avenue Securities’ acceptance of the planning fee essentially legitimized the fraudulent advice, making the firm responsible for the resulting catastrophic losses.
Elder Abuse and Regulation Best Interest
The claim further alleges violations of Regulation Best Interest (Reg BI), which requires brokers to act in the retail customer’s best interest and prohibits placing the broker’s interest ahead of the client’s. Recommending an unvetted, fraudulent, illiquid investment to a senior citizen is a textbook violation of this standard.
Additionally, because the claimant is a senior citizen, the filing includes causes of action for Elder Abuse under California law. Financial elder abuse statutes are designed to protect vulnerable populations from professionals who leverage their apparent authority to misappropriate funds.
What Should Investors Do?
Brokerage firms have an absolute duty to monitor their agents. When a firm fails to detect that its broker is selling fraudulent outside investments—especially when the firm is collecting fees for “financial planning” related to those investments—they may be liable for the damages.
The Securities Lawyers are currently investigating claims regarding Andrew Roberson, Park Avenue Securities, and investments in Benison Resource Co. or H2 Solis.
If you have suffered losses in these or similar investments, we can help.
Sean M. Sweeney is a shareholder at Halling and Cayo, a full service law firm in Milwaukee, WI and the head of its Securities Litigation team.
He represents individual and institutional investors in FINRA arbitration and court nationwide. He recovers investment losses from fraud or breach of duty from their broker-dealer.
Contact him at (414) 755-5020 or via e-mail at SMS@hallingcayo.com to see if he can help recover your funds.