Last Updated: August 2024 (Indianapolis, IN)
National securities fraud lawyers at Patil Law P.C. are investigating current Ameriprise Financial Services broker Charles Gemmer (CRD #2633600) regarding allegations of recommending unsuitable Real Estate Investment Trust (REIT) investments.
A recently filed customer complaint raises significant concerns about Mr. Gemmer’s investment recommendations while at Equitable Advisors (formerly AXA Advisors), particularly regarding illiquid REIT investments and their suitability for retail investors.
Critical Insights About Indianapolis Financial Advisor Charles Gemmer
- Advisor Name: Charles P. Gemmer
- CRD: 2633600
- Location: Indianapolis, IN
- Current Employer: Ameriprise Financial Services, LLC
- Classification: Registered Representative & Investment Adviser Representative
- Primary Location: 2900 E 96th St, Indianapolis, IN 46240
- Can Charles Gemmer be sued in FINRA arbitration: Yes
- Customer Disputes: One customer complaint denied in October 2024
- Current Registrations: Licensed in 23 states
- Years of Experience: Since 1995
- Previous Employers: AXA Advisors (1995-2018)
- Professional Qualifications: Series 7, 6, 63, 65 licenses
- Outside Business Activities: Lido Bottle Works (restaurant co-owner), Insurance agent, Retirement planning instructor
- Office Locations: Indianapolis and Fishers, IN
Details of Current Investigation
A customer complaint filed in August 2024 alleged that Mr. Gemmer recommended an unsuitable REIT investment in 2014 while at Equitable Advisors. The customer questioned the recommendation given the investment’s lack of liquidity and subsequent devaluation, seeking $30,000 in damages. The complaint was denied by the firm in October 2024.
Analysis of Alleged Misconduct
The allegations focus on REIT investment recommendations, which require careful consideration of:
- Limited liquidity and long holding periods
- Complex fee structures
- Potential conflicts of interest
- Market valuation challenges
- Concentration risk management
Regulatory Framework and Investor Protection
SEC Regulation Best Interest
Under Reg BI, brokers must:
- Provide full disclosure of REIT characteristics and risks
- Consider reasonable alternatives
- Evaluate client-specific factors
- Document the basis for recommendations
- Monitor ongoing suitability
FINRA Rules and Their Significance
FINRA Rule 2111 requires brokers to:
- Conduct reasonable diligence on REIT investments
- Consider client investment objectives
- Evaluate risk tolerance
- Assess liquidity needs
- Review concentration levels
FINRA Rule 2310 specifically addresses direct participation programs and REITs:
- Requires reasonable investigation of the REIT
- Mandates fair and balanced risk disclosure
- Sets concentration guidelines
- Requires due diligence on sponsors
Professional Background
Mr. Gemmer has been in the securities industry since 1995, primarily with AXA Advisors before joining Ameriprise in 2018. Notable aspects include:
- Long tenure at a single firm before recent transition
- Multiple state registrations
- Diverse outside business activities
- Experience with retirement planning education
Red Flags for Investors
- History of recommending illiquid alternative investments
- Recent transition between major firms after long tenure
- Multiple outside business activities requiring time commitment
- Customer complaints involving complex investment products
- Focus on real estate securities with limited liquidity
Implications for Current and Former Clients
Current and former clients should:
- Review their REIT investments and concentration levels
- Evaluate portfolio liquidity
- Assess investment objectives alignment
- Consider independent portfolio review
- Understand their rights regarding unsuitable investments
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have suffered investment losses in an account handled by Mr. Gemmer or have concerns about REIT investments in your portfolio, please contact Attorney Patil online or call (800) 950-6553 for a free initial consultation. Our securities fraud attorneys work on a contingency fee basis, meaning we only get paid if we help you recover money.
