• Report: #747747

Complaint Review: Ric Edelman Edleman Financial Services The Edelman Financial Group

Thank You

Read how Ripoff Report saves consumers millions.

  • Submitted: Thu, June 30, 2011
  • Updated: Mon, August 22, 2011

  • Reported By: NotaRic Fan — New York United States of America
Ric Edelman Edleman Financial Services The Edelman Financial Group
4000 Legato Road, 9th Floor Fairfax, Virginia United States of America

Ric Edelman Edleman Financial Services The Edelman Financial Group Ric Edleman Forced to Issue Retraction For Lying About David Lerner Associates Inc. Ric Edleman Forced to Issue Retraction For Lying About David Lerner Associates Inc. Fairfax, Virginia

*General Comment: Questionable

*Consumer Comment: More David Lerner Propaganda

What's this?
What's this?
What's this?
Is this
Ripoff Report
About you?
Ripoff Report
A business' first
line of defense
on the Internet.
If your business is
willing to make a
commitment to
customer satisfaction
Click here now..

Does your business have a bad reputation?
Fix it the right way.
Corporate Advocacy Program™

SEO Reputation Management at its best!

Ric Edleman The "Self-Proclaimed" #1 Financial Advisor just got spanked by David Lerner Associates. Common sense tells us that you shouldn't talk about subjects you have no knowledge of. This is especially truewhen you buy radio air time and try to pass it off as a radio program insteadof the infomercial it is.

In a recent radio commercial Ric was trying to explain Apple REITS and he failed miserably. He told his listeners that David Lerner repriced Apple Eight shares from $11.00 to $7.50 and he couldn't have been more wrong. He received a letter from DLA's lawyer demanding a retraction, but instead of being a man about it all he said was "yes I was wrong, DLA didn't reprice the Apple Eight share it was Apple Eight Inc. that did it," Wrong again Ric. The SEC filing was on the book value only. The market value remains at $11.00. I'm a share holder and I called Apple after you reported your lies and they told me the truth. If you don't know the difference between book value and market value then you really shouldn't be giving financial advice to the public. And don't say it's non-traded so there is no market value. I expect that to be your cop-out position.

For those who don't know who this person is, he's a questionable financial advisor with minimal talent. He claims he's consistently voted the nations #1 "Independent" financial advisor, but, is he really independent or is he lying again? 

Here is what it says in his brochure on page 6:
http://www.ricedelman.com/galleries/default-file/Edelman-Financial-Services-ADV.pdf:

EFS (Edleman Financial Services) We are primarily owned by the Sanders Morris Harris Group a publicly traded financial services firm located in Houston. Ric Edelman is Chairman, CEO and a minority owner of EFS (Edelman-Financial-Services)

That doesn't sound too independent to me. And even more amusing is he is only a MINOR OWNER of the company that bares his name. That screams even less independence. I'd say he's lying again or at the very least misleading the public.

Ric also serves as President and Director of Sanders Morris Harris Group who owns a broke dealer named Sanders Morris Harris Inc. This is the only part of their business that is registered with FINRA. Lets see what FINRA has to say about Ric Edleman's Broker Dealer company. These facts can beverified  at www.finra.orgr click broker check, click broker dealer, type the name Morris Harris Group, follow the instructions until you get to the PDF file scroll to page 32 where all the penalties and fines begin.

 
1. Ric's firm allowed "improper payments" of $325,000.00 to a hedge fund manager as well as distributing investment  sales literature without adequately describing the material risk factors to potential investorsand allowed an employee to engage in activities he was not registered for. Penalty: Censure and $450,000.00.

2. Account related failure to supervise, negligence, fraudulent activity, breach of fiduciary and unsuitablity. Relief Requested $28,965,392.00. Victim was awarded $498,831.00.

3. Failure to report order events "for severalyears" in violation on NASD rule 6955(A).
Penalty: Censure and $65,000.00 fine.

4. Sanders Morris Harris Inc. allowed their agents to give financial advice
to the public WITHOUT the required registration and licensing exams. (in other words unlicensed and unqualified employees were advising the public). Penalty: Reprimand and $30,000.00 fine.

5. Ric's firm failed to implement or enforce systems to prevent market timing in regards to mutual funds. Penalty: Censure and $45,000.00 fine.


It seems Ric and his employess are not qualified to advise anyone especially in light of these major Securities Law violations.

Ric has a miniscule 15,000 clients and claims to manage 6.5 billion. If you want to challenge a company like David Lerner Inc you need to do your homework.  His investors have more in his REIT than your company manages. Throw in the bonds, stocks and mutual funds, hundreds of thousands of clients and his 35 years of outstanding service and you're a mere flea on DLA's backend.

Ive listened to your show and you have clients who've lost enormous amounts in their retirement portfolios due to your advisor's "sterling advice". I've made over 70% in one of my REITS and over 40% in another and haven't lost a dime. I reinvest my dividends to take advantage of "compounding". You advise your clients not to reinvest their dividends, that could be why your whopping 15,000 clients are doing so poorly.

 I guess Apple Eight's lawyer will be contacting you next because after your non-retraction you made the same mistake again. But then again your FINRA penalty and fines record shows a pattern of disregard for the truth and the law.

This report was posted on Ripoff Report on 06/30/2011 07:03 PM and is a permanent record located here: http://www.ripoffreport.com/r/Ric-Edelman-Edleman-Financial-Services-The-Edelman-Financial-Group/Fairfax-Virginia-22033/Ric-Edelman-Edleman-Financial-Services-The-Edelman-Financial-Group-Ric-Edleman-Forced-to-I-747747. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

Click Here to read other Ripoff Reports on Ric Edelman Edleman Financial Services The Edelman Financial Group

Search for additional reports

If you would like to see more Rip-off Reports on this company/individual, search here:

Search Tips
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?
REBUTTALS & REPLIES:
0Author 2Consumer 0Employee/Owner
Updates & Rebuttals

#1 General Comment

Questionable

AUTHOR: T C - (United States of America)

I find your statement a bit questionable, in the least.  You state that Edelman was "spanked" by Lerner.  However, the only action you mention was that Lerner's lawyer sent a letter demanding a retraction.  There is no mention of any judgement or even suit by a regulatory agency or court.  On the contrary, I find that Lerner is being sued by both FINRA and his own investors over some of the Apple REITs.

http://www.finra.org/Newsroom/NewsReleases/2011/P123738

http://shareholdersfoundation.com/case/apple-reits-investors-file-lawsuit-against-david-lerner-associates-inc

Plus, this WSJ article seems to corroborate Edelman's statements:

http://online.wsj.com/article/SB10001424052702304563104576357900556843890.html
Respond to this report!
What's this?

#2 Consumer Comment

More David Lerner Propaganda

AUTHOR: REIT Whore - (United States of America)

"If you don't know the difference between book value and  market value then you really shouldn't be giving financial advice to the public."





Really, madam, your company has been caught in one of the biggest scams ever to take place (and that is saying something) and all you can do is frequent a site like this and post your drivel.



The Apple REITs don't have a "market value" of $11.00 a share, simply because the market value of the hotels in the REIT have been marked down by 30 to 40% since they were so recklessly purchased by your syndicator, Glade Knight.  Not to mention the fact that the shareholders paid for Mr. Knights private jet, even as the REITs were leveraging themselves to cover the dividends it couldn't pay through operating income.



Your firm never told the shareholders what had happened to the value of these extended stay hotels, and you never told them you were borrowing money to cover the dividends, EVEN AFTER YOU REDUCED THEM. You also never told them that four hotels in Apple 8 were handed back to the bank, essentially foreclosed on. You never told them that you sold two hotels in Tempe Arizona for 60% of what was paid for them, but of course, you still maintain that the REIT has a "market value" of $11.00 a share, even after that loss. Who did you say you were giving investment lessons to? You dont have the brains to balance a checkbook!



The fact is, barring anything unusual occuring, there is NO chance of any Apple 7, 8, or 9 investor coming out whole, and if you had any integrity instead of hanging on to this farce you have maintained as your firm being the home of "safe investing," you wouldn't be posting this crap of yours.



Your going down, honey- you're in total denial and you've got both FINRA and the SEC breathing down your neck, and class action suits forming every day. Give it up already. No one is stupid enough to believe this garbage. You're only fooling yourself.

Respond to this report!
What's this?
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?

Advertisers above have met our
strict standards for business conduct.



Ripoff Report Legal Directory