March 14, 2025 | Vienna, VA
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Essential Information About Philip Allen Simonides
- Full Name: Philip Allen Simonides
- CRD Number: 1847411
- Current Location: Vienna, VA
- Current Employers: MCADAM LLC (Investment Adviser Representative) and MADISON AVENUE SECURITIES, LLC (Registered Representative)
- Office Address: 8000 Towers Crescent Dr, 13th Floor, Vienna, VA 22182
- Registration Status: Currently registered with 1 Self-Regulatory Organization and 2 U.S. states/territories
- State Licenses: Virginia (Broker & Investment Adviser Representative), Texas (Investment Adviser Representative)
- Experience: In the financial industry since 1988
- FINRA BrokerCheck: One pending customer dispute involving allegations of unsuitable investment recommendations
- Previous Employers: Purshe Kaplan Sterling Investments, Voya Financial Advisors, Inc., Ameriprise Financial Services, Inc.
- Ability to Recover Losses: Investors may be eligible for FINRA arbitration to recover losses from unsuitable investments
Case Overview: Allegations of Unsuitable Investment Recommendations
Financial advisor Philip Allen Simonides is currently facing serious allegations related to investment suitability. According to his FINRA BrokerCheck report, Mr. Simonides is the subject of a pending FINRA arbitration (Case #25-00347) filed on February 11, 2025. The complaint specifically alleges that Mr. Simonides recommended an unsuitable investment in a product called “Skyloft DST,” a real estate security.
The client filing this complaint is seeking damages of $157,747.01, a substantial sum that represents significant potential losses from what the investor claims was an inappropriate investment recommendation. This pending arbitration raises important questions about Mr. Simonides’ investment recommendation practices and his adherence to FINRA’s suitability standards.
The complaint was officially reported to regulators on February 19, 2025, and as of the time of this publication, remains in pending status with no resolution. It’s worth noting that while allegations in a pending matter have not been proven or formally adjudicated, they nevertheless represent serious concerns about potential violations of industry standards.
Background and Professional History of Philip Allen Simonides
Philip Allen Simonides has been in the financial services industry for over three decades, having obtained his first securities registration in June 1988. According to his FINRA BrokerCheck report, Mr. Simonides holds multiple securities licenses and professional qualifications that allow him to serve in various capacities within the financial industry.
Mr. Simonides currently maintains dual employment in the financial sector. Since January 2025, he has been affiliated with Madison Avenue Securities, LLC (CRD# 23224) as a registered representative. Simultaneously, since October 2014, he has been working as an investment adviser representative with McAdam LLC (CRD# 170914).
Throughout his lengthy career, Mr. Simonides has worked for several notable financial firms. His employment history includes:
- Purshe Kaplan Sterling Investments (October 2014 – January 2025)
- Voya Financial Advisors, Inc. (February 2011 – October 2014)
- Ameriprise Financial Services, Inc. (June 1988 – March 2011)
- Ameriprise Advisor Services, Inc. (April 2009 – October 2009)
- IDS Life Insurance Company (June 1988 – July 2006)
Mr. Simonides has passed multiple industry examinations that qualify him for various roles in securities sales and supervision. His credentials include three principal/supervisory exams (Series 4, 51, and 24), three general industry/product exams (Series 52TO, SIE, and 7), and two state securities law exams (Series 65 and 63). Additionally, he holds the Certified Financial Planner (CFP) designation, a credential that typically signifies advanced training in financial planning and ethics.
This extensive background and broad regulatory approval suggests that Mr. Simonides has significant experience and knowledge of industry standards and practices, making the current allegations of unsuitable investment recommendations particularly concerning.
Understanding Delaware Statutory Trusts (DSTs) and the Skyloft Investment
The pending complaint against Mr. Simonides involves a specific investment product called “Skyloft DST.” To understand the potential issues at play, it’s important to recognize what Delaware Statutory Trusts (DSTs) are and why they might be problematic for certain investors.
A Delaware Statutory Trust (DST) is a legal entity used to hold title to investments, typically involving commercial real estate. DSTs have become popular vehicles for 1031 tax-deferred exchanges, allowing investors to defer capital gains taxes when selling investment property. While these can be legitimate investment vehicles, they come with substantial risks that make them unsuitable for many retail investors:
- Illiquidity: DST investments are typically highly illiquid with no established secondary market. Investors may be unable to access their capital for 5-10 years or longer.
- Complexity: These are sophisticated investment structures that many retail investors struggle to fully understand.
- Limited Control: Investors have virtually no control over the property’s management or operation decisions.
- Concentration Risk: Placing a significant portion of one’s portfolio in a single DST creates substantial concentration risk.
- Fees: DSTs often involve multiple layers of fees that can significantly reduce returns.
The specific “Skyloft DST” appears to be a student housing investment, a subsector of real estate that carries its own unique risks beyond those inherent to all DSTs, including:
- Seasonal occupancy challenges
- Management intensity
- Potential for property damage
- Market saturation in certain college towns
- Changing demographics and enrollment patterns
- Competition from on-campus housing options
For these reasons, DST investments like Skyloft require careful suitability analysis before recommendation to any client. The pending complaint suggests that Mr. Simonides may have failed to adequately consider whether this complex, illiquid investment was appropriate for his client’s specific financial situation, investment objectives, risk tolerance, and time horizon.
Red Flags for Investors: Signs of Potentially Unsuitable Investment Recommendations
The allegations against Philip Allen Simonides highlight the importance of recognizing potential red flags in investment recommendations. Investors should be vigilant about the following warning signs that could indicate unsuitable investment advice:
1. Complexity Without Clarity
When a financial advisor recommends complex products like DSTs without clearly explaining all risks, fees, and limitations, this could indicate a problem. Every investor deserves to fully understand what they’re investing in, including worst-case scenarios.
2. Illiquidity Mismatch
Recommendations of highly illiquid investments (like DSTs) to investors who may need access to their money in the foreseeable future can be a major red flag. Your advisor should thoroughly discuss your liquidity needs before recommending investments that lock up your capital.
3. Concentration Concerns
If a significant percentage of your portfolio is directed toward a single investment or type of investment, this concentration may create inappropriate risk. Proper diversification is a cornerstone of prudent investment management.
4. Unsuitable Risk Levels
Investments that exceed your stated risk tolerance or seem inconsistent with your investment objectives deserve scrutiny. Your risk profile should be carefully assessed and documented before any recommendations are made.
5. High-Pressure Sales Tactics
Any advisor who creates artificial urgency or uses high-pressure tactics to push alternative investments may not be acting in your best interest. Legitimate investments rarely require immediate decisions.
6. Incomplete Disclosure
Failure to fully disclose all costs, fees, risks, and potential conflicts of interest associated with an investment is problematic and potentially violates regulatory requirements.
7. Inconsistency with Stated Goals
Recommendations that seem disconnected from your stated financial goals and objectives should raise questions about whether your advisor is truly listening to your needs.
In the case of Mr. Simonides, the pending arbitration specifically alleges an unsuitable investment recommendation regarding the Skyloft DST. If proven, this would indicate a failure to properly align the investment with the client’s specific circumstances and needs—a fundamental responsibility of any financial advisor.
Legal and Regulatory Framework: Standards for Investment Recommendations
Financial advisors like Philip Allen Simonides are subject to strict regulatory standards regarding the investment recommendations they make to clients. Understanding these standards can help investors recognize potential violations:
FINRA Rule 2111: The Suitability Rule
FINRA Rule 2111 requires that brokers have a reasonable basis to believe a recommended transaction or investment strategy is suitable for the customer based on information obtained through reasonable diligence. This includes:
- Customer-Specific Suitability: The recommendation must align with the customer’s investment profile, including age, financial situation, tax status, investment objectives, investment experience, risk tolerance, liquidity needs, and time horizon.
- Reasonable-Basis Suitability: The broker must understand the risks and rewards of the recommended investment or strategy.
- Quantitative Suitability: A series of recommended transactions must not be excessive or inappropriate when taken together in light of the customer’s profile.
SEC Regulation Best Interest (Reg BI)
Since June 2020, broker-dealers have been subject to Regulation Best Interest, which elevates the standard from suitability to a “best interest” standard. This requires that recommendations:
- Address potential conflicts of interest
- Provide full and fair disclosure of all material facts
- Exercise diligence, care, and skill
- Consider costs associated with the recommendation
Fiduciary Duty for Investment Advisers
As an investment adviser representative with McAdam LLC, Mr. Simonides is also subject to fiduciary standards under the Investment Advisers Act of 1940, which requires:
- Acting in the client’s best interest at all times
- Avoiding conflicts of interest where possible
- Fully disclosing all material facts, including potential conflicts
- Providing suitable advice based on the client’s financial situation
The pending complaint against Mr. Simonides involves allegations that could potentially violate these standards. If it’s determined that the Skyloft DST recommendation was unsuitable for the specific investor given their particular circumstances, this could constitute a violation of FINRA Rule 2111, Regulation Best Interest, and potentially fiduciary duty standards.
FINRA Arbitration Process
FINRA provides a forum for investors to seek recovery when they believe they’ve been harmed by unsuitable investment recommendations. The arbitration process is typically faster and less expensive than traditional courts, though it still involves a formal hearing with evidence presentation and testimony.
Guidance for Investors Working with Financial Advisors
If you’re currently working with Philip Allen Simonides or any financial advisor, consider these protective measures to safeguard your investments:
1. Verify Registration and Disciplinary History
Always check your advisor’s background using FINRA’s BrokerCheck (brokercheck.finra.org) or the SEC’s Investment Adviser Public Disclosure database (adviserinfo.sec.gov). Look for any customer complaints, regulatory actions, or other red flags.
2. Understand Every Investment Thoroughly
Never invest in anything you don’t fully understand. Ask detailed questions about:
- How the investment makes money
- All associated risks
- All fees and costs
- Liquidity constraints
- Worst-case scenarios
- Performance expectations
3. Request Written Documentation
Ask for written materials explaining any recommended investment, and compare what you’re told verbally with what’s in the written disclosures. Discrepancies could be a warning sign.
4. Pay Attention to Alternative Investments
Be particularly careful with alternative investments like DSTs, private placements, or other non-traditional investments. These often carry higher risks, fees, and complexity than traditional investments.
5. Document Communications
Keep records of all conversations, emails, and recommendations. Note any claims or promises made about investments, especially if they seem too good to be true.
6. Review Account Statements Carefully
Regularly review your account statements and trade confirmations to ensure they match your understanding of what should be happening in your accounts.
7. Act Quickly If You Suspect Problems
If you believe your financial advisor has made unsuitable recommendations, contact an experienced securities attorney promptly. Strict time limitations (statutes of limitations) apply to investment claims.
For Investors Concerned About Unsuitable Investments
If you’ve worked with Philip Allen Simonides and have concerns about investment recommendations you’ve received, particularly regarding the Skyloft DST or other alternative investments, it’s important to understand your options for potential recovery.
Our law firm specializes in representing investors who have suffered losses due to unsuitable investment recommendations, broker misconduct, or securities fraud. We offer:
- Forensic Account Analysis: Our team can conduct a detailed analysis of your investment accounts to identify potential unsuitable recommendations, excessive trading, or other problems.
- FINRA Arbitration Representation: We represent investors in FINRA arbitration proceedings, the primary forum for resolving disputes with brokers and brokerage firms.
- Contingency Fee Structure: We typically work on a contingency fee basis, meaning you pay no attorney fees unless we recover money for you.
- Regulatory Reporting Assistance: If appropriate, we can help report misconduct to relevant regulatory authorities, including FINRA and the SEC.
- Confidential Consultation: We offer confidential, no-obligation consultations to discuss your specific situation and potential recovery options.
Remember that there are strict time limitations for filing claims related to investment losses. In many cases, you have only six years from the date of the harmful recommendation to file a FINRA arbitration claim. However, some circumstances may reduce this time frame even further, making prompt action essential.
Don’t wait to explore your options if you believe you’ve been harmed by unsuitable investment recommendations. Taking immediate steps can protect your legal rights and maximize your chances of recovery. Call 800-950-6553 today or visit our website to schedule your confidential, no-obligation consultation with an experienced investment fraud attorney who can evaluate your potential claim.
