The US Securities & Exchange Commission (SEC) is currently investigating Moretz following allegations of “certain provisions of federal securities laws,” including Section 10(b) of the Exchange Act and Rule 10b-5. This section involves the misleading omissions and misrepresentation during the sale of securities. Garrett Moretz is cooperating with the investigation but denies the allegations of any wrongdoing. The investigation was filed on 5/1/2023 and is ongoing.
Moretz is also the subject of three customer disputes totaling $254,750.00, all of which have been settled.
- Filed on 10/11/2023, settled for $35,000
- Filed on 10/31/2022, settled for $119,750
- Filed on 7/14/2022, client requested damages of $154,500.00, settled for $100,000
In each dispute, the customer alleges unsuitable investment in “an alternative product” from a company which later declared Chapter 11 bankruptcy. This purchase was intended as a smaller part of a larger diversified overall portfolio investment strategy. The company is not named in any of the disputes.
In their dispute the customers list multiple allegations that include breach of fiduciary duty, material misrepresentation, violation of Regulation Best Interest, omissions of material facts, negligence, negligent supervision, insufficient due diligence, and others.
In his rebuttal, Moretz denied the allegations, and claimed that the investments “appropriately matched” all three customer profiles and investment strategies. Moretz also stated that he was not involved in negotiations nor contributed to the eventual settlement of these disputes.
The Risks of “Alternative Investments”
Portfolio diversity is as varied as every individual investor. What works for one investor may be unsuitable for another, particularly with risk tolerance.
“Alternatives” are those investments that aren’t the usual long-game stocks and bonds. Adding these can further diversify a portfolio, but there are risks involved. While an alternative investment may have higher returns, they may also be illiquid, meaning you won’t be able to sell them if you wanted. Many have higher “lockup” periods where you would not have access to the capital. They may also have higher requirements for minimum investments.
Typically, these are more suited for larger institutional investors that can absorb some of the risk. These alternatives can include hedge funds, real estate, private equity, and alternative credit. Individual investors may also include some of these, but may also include tangibles such as art.
Because alternative investments include things that carry more risk, due diligence and research is even more important before investing in anything different.
Did You Invest With Garrett Moretz?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.