Haselkorn & Thibaut (investmentfraudlawyers.com) has opened an investigation into Blake Fellows and his investment practices following multiple investor complaints. If you’ve suffered investment losses while working with Blake Fellows or Fellows Financial Group, LLC, understanding the red flags and complaint history can help you evaluate your situation and potential options for recovery.
Understanding Blake Fellows’ Professional Background
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Blake Fellows (CRD No. 4374810) operates as an investment advisor through multiple financial firms. Currently registered with Arkadios Capital as a broker and maintaining investment advisor registrations with Wealthcare Capital Partners, LLC and Wealthcare Advisory Partners, LLC, Fellows has built a career spanning multiple organizations from his base in Leesburg, Virginia.
His primary affiliation appears to be with Fellows Financial Group, LLC, where recent investor complaints have emerged. This multi-firm registration pattern, while not uncommon in the financial services industry, requires investors to carefully track where their accounts are held and which entity bears responsibility for investment recommendations.
Recent Investor Allegations Against Blake Fellows
The most recent allegations against Blake Fellows paint a concerning picture for investors. A husband and wife investor team has come forward claiming that Fellows recommended investments and strategies that were fundamentally unsuitable for their financial situation and risk tolerance. These allegations deserve careful examination by any investor who has worked with Fellows.
Key allegations in the recent complaint include:
- Recommendations of speculative investments that didn’t align with the clients’ risk tolerance
- Promotion of a business opportunity with Guardian Wireless
- Sale of an indexed universal life insurance policy allegedly unsuitable for the clients’ needs
- Encouragement to use debt and leverage to fund investments
The combination of speculative investments with borrowed money represents a particularly risky strategy that can magnify losses during market downturns. For conservative investors or those nearing retirement, such strategies may be especially inappropriate.
Pattern of Customer Complaints: A 15-Year History
What makes the Blake Fellows situation particularly noteworthy is the pattern of similar complaints spanning over 15 years. FINRA records reveal three prior customer complaints that echo similar themes:
| Year | Allegation | Product Type |
|---|---|---|
| 2007 | Unsuitable sale | Variable life insurance policy |
| 2021 | Unsuitable recommendations | REIT and Business Development Corporation |
| 2022 | Unsuitable recommendation | Alternative investment |
This timeline reveals a persistent pattern of suitability-related complaints involving various complex financial products. The progression from insurance products to alternative investments suggests an evolving but consistent issue with matching investment recommendations to client needs.
Red Flags for Investors to Consider
Several red flags emerge from Blake Fellows’ complaint history that current and former clients should carefully evaluate:
1. Complex Product Focus: The complaints involve sophisticated financial products including variable life insurance, REITs, BDCs, and alternative investments. These products often carry higher fees, reduced liquidity, and increased risk compared to traditional investments.
2. Suitability Concerns: Every documented complaint alleges unsuitability – a fundamental breach of an advisor’s duty to recommend investments appropriate for each client’s unique situation.
3. Use of Leverage: The recommendation to use debt to fund investments dramatically increases risk and can lead to devastating losses if investments decline.
4. Pattern Over Time: Complaints spanning from 2007 to present suggest these aren’t isolated incidents but potentially systematic issues.
What This Means for Blake Fellows’ Clients
If you’ve worked with Blake Fellows or Fellows Financial Group, LLC, now is the time to carefully review your investment portfolio and account history. Consider these important questions:
- Were you sold complex products you didn’t fully understand?
- Did your advisor accurately assess your risk tolerance before making recommendations?
- Were you encouraged to borrow money to invest?
- Have your investments performed significantly worse than market benchmarks?
- Do you hold illiquid alternative investments that you cannot easily sell?
Time limitations exist for filing claims, making prompt action essential. The securities industry maintains specific deadlines for arbitration claims, typically six years from the date of purchase or three years from when you discovered or should have discovered the wrongdoing.
Your Rights as an Investor
Investment advisors and brokers have legal and ethical obligations to their clients. These duties include recommending only suitable investments, providing accurate information about risks, and avoiding excessive trading or speculation with client funds. When advisors breach these duties, investors have the right to seek recovery of their losses.
The FINRA arbitration process provides a forum for investors to pursue claims against financial advisors and their firms. This process often proves faster and less expensive than traditional litigation, with many cases resolving within 12-16 months.
Taking Action: Next Steps for Concerned Investors
If you recognize your situation in these complaints or have concerns about investments recommended by Blake Fellows, taking prompt action is crucial. Document all communications, gather account statements, and create a timeline of investment recommendations and losses.
Haselkorn & Thibaut specializes in helping investors recover losses from unsuitable investment recommendations. With over 50 years of combined experience and a 98% success rate, the firm has recovered millions for clients nationwide. Operating on a contingency basis means no recovery, no fee – you pay nothing unless they successfully recover compensation for your losses.
The investigation into Blake Fellows and Fellows Financial Group continues to develop. Don’t wait to understand your rights and options. Call Haselkorn & Thibaut today at 1-888-628-5590 for a free, confidential consultation about your Blake Fellows investments. Their experienced attorneys can evaluate your situation, explain your options, and help you understand the potential for recovering your investment losses.
