Roseville, CA | January 13, 2026
California financial advisor Rikki Foster Jr. (CRD# 6075051) is defending himself against a substantial FINRA arbitration claim filed in September 2025. According to BrokerCheck records, a client is seeking $700,000 in damages, alleging breach of fiduciary duty, unsuitable investment recommendations, breach of written contract, and misrepresentation related to a direct investment made in October 2022.
The complaint, filed as FINRA Case #25-01952 on September 16, 2025, involves a “Direct Investment – DPP & LP Interests”—a category that typically includes direct participation programs such as oil and gas partnerships, real estate limited partnerships, equipment leasing programs, and other alternative investments that offer tax benefits but carry significant risks and liquidity constraints.
Foster has been registered with Concorde Investment Services, LLC since February 2019 and serves as an Investment Adviser Representative with Concorde Asset Management, LLC since June 2023. He operates from branch offices in Roseville, California, where the alleged misconduct occurred.
Understanding Direct Participation Programs and Limited Partnership Interests
Direct participation programs (DPPs) and limited partnership (LP) interests represent some of the most complex and risky investment products available to retail investors. These investments typically involve:
Oil and Gas Partnerships
Programs that invest in exploration, drilling, or production of oil and natural gas, offering potential tax deductions but carrying substantial operational and market risks.
Real Estate Limited Partnerships
Pooled investments in commercial or residential real estate projects that may offer income and tax benefits but often lack liquidity and transparency.
Equipment Leasing Programs
Partnerships that purchase equipment and lease it to businesses, generating income but exposing investors to technology obsolescence and lessee credit risk.
Business Development Companies (BDCs)
Investment vehicles that provide capital to small and mid-sized businesses, often with high yields but elevated default risks.
These alternative investments share several concerning characteristics that make them potentially unsuitable for many investors:
Illiquidity: DPPs and LP interests typically cannot be easily sold. Investors may be locked in for 7-10 years or longer, with no secondary market and substantial penalties for early withdrawal.
Complexity: The tax treatment, fee structures, and operational mechanics of these investments are often difficult for retail investors to understand fully.
High Fees: DPPs commonly charge upfront fees of 10-15% or more, plus ongoing management fees, reducing the amount actually invested and creating significant breakeven hurdles.
Conflicts of Interest: Brokers often receive substantial commissions (8-10%) for selling these products, creating powerful incentives to recommend them regardless of suitability.
Limited Transparency: Unlike publicly traded securities, DPPs may provide limited information about operations, valuations, and risks.
The Allegations: Breach of Fiduciary Duty and Misrepresentation
The pending arbitration alleges four distinct violations:
1. Breach of Fiduciary Duty
As an Investment Adviser Representative with Concorde Asset Management, Foster owes his advisory clients a fiduciary duty—the highest standard of care under securities law. This legal obligation requires him to:
- Put the client’s interests ahead of his own financial interests
- Provide investment advice that serves the client’s best interest
- Fully disclose all material conflicts of interest
- Deal honestly and fairly with clients in all matters
A breach of fiduciary duty can occur when an advisor recommends investments that generate high commissions for the advisor but are unsuitable for the client’s needs, risk tolerance, or financial situation.
2. Suitability Violations
Even when acting as a broker (rather than an investment adviser), Foster must ensure that any investment recommendations are suitable for the client. Direct investments like DPPs and LP interests are generally suitable only for:
- Sophisticated investors who understand the complex structures and risks
- High-net-worth individuals who can afford to lose the entire investment
- Investors with substantial liquid assets who don’t need access to the invested capital
- Those in high tax brackets who can benefit from the tax characteristics
- Investors with long time horizons (typically 7-10+ years)
The $700,000 loss alleged suggests this was a substantial portion of the client’s portfolio—potentially representing an unsuitable concentration in a single, illiquid, high-risk alternative investment.
3. Breach of Written Contract
The allegation of breach of written contract suggests that Foster may have violated specific terms of an investment advisory agreement, customer agreement, or other contractual obligation. This could involve:
- Deviating from agreed-upon investment strategies
- Failing to follow stated investment objectives
- Violating promised risk parameters
- Not adhering to specified investment guidelines
4. Misrepresentation
Misrepresentation allegations can encompass a range of misconduct, including:
- Making false or misleading statements about the investment’s risks, returns, or features
- Omitting material information that would affect an investment decision
- Exaggerating the safety or projected returns of the investment
- Downplaying liquidity constraints or early withdrawal penalties
- Failing to disclose conflicts of interest or compensation arrangements
Rikki Foster’s Background and Career History
According to FINRA records, Rikki JR Foster has been in the securities industry since 2013—approximately 12 years. His career has been marked by frequent firm changes, having worked for at least seven different broker-dealers and investment advisory firms.
Current Registrations:
- Concorde Investment Services, LLC – Registered Representative (since February 2019)
- Concorde Asset Management, LLC – Investment Adviser Representative (since June 2023)
- Regal Stone Wealth Management LLC – Founded February 2025
- Branch office located at 1430 Blue Oaks Blvd., Suite 268, Roseville, CA 95747
Licenses and Qualifications:
- Series 7 (General Securities Representative) – passed July 2013
- Series 66 (Uniform Combined State Law) – passed August 2013
- Securities Industry Essentials Examination (SIE) – passed October 2018
Foster is currently licensed to do business in 18 U.S. states and territories.
Previous Firms:
- Bangerter Financial Services, Inc. (May 2018 – February 2025)
- Berthel, Fisher & Company Financial Services, Inc. (April 2018 – February 2019)
- Hornor, Townsend & Kent, Inc. (November 2017 – April 2018)
- Questar Capital Corporation (November 2015 – November 2017)
- Waddell & Reed (July 2013 – November 2015)
Multiple Business Activities: A Complex Web
Foster’s BrokerCheck record reveals an unusually extensive array of outside business activities, which may create conflicts of interest and divided attention:
- Concorde Insurance Agency, Inc. – Insurance agent (since February 2019)
- Foster Tax Prep and Strategies – Tax preparer (since January 2021)
- Rikki and Kelly Foster Family Foundation – Charitable foundation member
- Foster Wealth Strategies LLC – Shell company for commission disbursement (since January 2023)
- Rest Recovery Wellness, LLC – Health & wellness business (since July 2024), dedicating 21-40 hours per month during non-business hours and 11-20 hours during business hours
- Regal Stone Wealth Management LLC – DBA for securities business, founded February 2025
This multi-faceted business model is concerning for several reasons:
Divided Attention: Operating multiple businesses while serving securities clients may compromise the attention and care provided to investment advisory clients.
Potential Conflicts: Selling insurance products, operating tax preparation services, and managing wellness businesses alongside investment advice creates numerous opportunities for conflicts of interest.
Commission Structures: The use of a shell company (Foster Wealth Strategies LLC) specifically “for proceeds from Concorde 1099 commissions to be dispersed to for tax purposes” raises questions about compensation arrangements and potential undisclosed conflicts.
The Timing: October 2022 Investment
The complaint specifically references misconduct “related to October 2022.” This timing is significant for several reasons:
Market Environment: October 2022 came during a challenging period for financial markets. The S&P 500 had declined approximately 20% year-to-date, interest rates were rising rapidly as the Federal Reserve fought inflation, and economic uncertainty was elevated. In such an environment, recommending a high-risk, illiquid alternative investment could be particularly problematic.
Three-Year Window: The complaint was filed in September 2025—approximately three years after the alleged misconduct. This suggests the client may have only recently discovered the full extent of their losses or the nature of the alleged misrepresentations.
Statute of Limitations: Under FINRA rules, claims generally must be filed within six years of the misconduct. The three-year period between the October 2022 investment and the September 2025 filing leaves ample time within the eligibility window.
Red Flags in Alternative Investment Sales
The allegations in Foster’s case highlight several warning signs investors should watch for when considering direct investments, DPPs, or limited partnerships:
High Commission Products
Alternative investments typically pay brokers substantially higher commissions than traditional securities—often 8-10% or more of the investment amount. This creates a powerful incentive to recommend these products regardless of client suitability.
Liquidity Mismatches
Recommending illiquid investments to clients who may need access to their capital is a classic suitability violation. The $700,000 amount suggests this may have represented a substantial portion of the client’s investable assets.
Complexity Without Understanding
If an investor doesn’t fully understand how an investment works, its risks, fees, and tax implications, they likely shouldn’t invest. Brokers have an obligation to ensure clients understand what they’re buying.
Overconcentration
Placing too much of a client’s portfolio into a single investment—particularly a high-risk, illiquid alternative—violates basic principles of diversification and risk management.
Undisclosed Conflicts
Brokers must disclose when they receive higher compensation for recommending certain products, when products are proprietary to their firm, or when other material conflicts exist.
Can You Recover Losses from Unsuitable Alternative Investments?
If you suffered losses due to unsuitable investment recommendations, breach of fiduciary duty, or misrepresentation involving direct participation programs, limited partnerships, or other alternative investments, you may be entitled to recover your losses through FINRA arbitration.
Direct investments and limited partnership interests are often unsuitable for:
- Retirees or those approaching retirement who need stable income and liquidity
- Conservative investors with low risk tolerance
- Investors who don’t understand the complex structures and risks
- Those who cannot afford to lose the entire investment
- Investors who may need access to their capital within 7-10 years
- Clients whose accounts are over-concentrated in illiquid alternatives
Patil Law, P.C. represents investors nationwide who have been harmed by unsuitable alternative investments, breach of fiduciary duty, and securities fraud. We have over 15 years of experience in securities law and have recovered more than $25 million for clients across 1,000+ cases.
Our Experience with Alternative Investment Cases
Alternative investment cases require attorneys who understand both the legal standards governing suitability and fiduciary duty, as well as the unique characteristics and risks of DPPs, limited partnerships, and other complex products. Attorney Chetan Patil founded Patil Law in 2018 to focus exclusively on representing investors harmed by securities misconduct. Our legal team—including attorneys Gabriela Dubrocq and Patricia Herrera—has extensive experience handling cases involving:
- Direct participation programs (DPPs)
- Limited partnership interests
- Oil and gas partnerships
- Real estate limited partnerships
- Business development companies (BDCs)
- Breach of fiduciary duty
- Unsuitable investment recommendations
- Misrepresentation and omission of material facts
We work on a contingency fee basis, meaning you pay no attorney fees unless we recover money for you. Your consultation is completely free and confidential.
Time Limits Apply to Securities Claims
FINRA arbitration claims generally must be filed within six years of the alleged misconduct. If you invested in direct participation programs, limited partnerships, or other alternative investments with Rikki Foster or another financial advisor and experienced losses, time may be running out to protect your rights.
Don’t let the statute of limitations expire on your claim.
What Should You Do If You Suspect Broker Misconduct?
If you believe you were sold unsuitable alternative investments, suffered losses due to breach of fiduciary duty, or were victims of misrepresentation, take these steps:
- Gather Your Documents: Collect account statements, trade confirmations, private placement memorandums, subscription agreements, and any written correspondence with your advisor.
- Calculate Your Losses: Document what you invested versus your current investment value, including any distributions received and additional capital calls.
- Review Disclosure Documents: Look for information about fees, liquidity constraints, risks, and conflicts of interest that may not have been properly explained.
- Consult with a Securities Attorney: A qualified securities attorney can evaluate your potential claim and explain your options for recovery through FINRA arbitration.
Contact Patil Law for a Free Consultation
If you lost money in direct participation programs, limited partnerships, or other alternative investments recommended by Rikki Foster, or if you have concerns about unsuitable alternative investments, breach of fiduciary duty, or misrepresentation with any financial advisor, contact Patil Law today for a free, confidential consultation.
Call: 800-950-6553
Email: info@patillaw.com
Website: investmentlosslawyer.com
There is no cost and no obligation. We’re here to help.
Frequently Asked Questions
What is the complaint against Rikki Foster?
Rikki Foster faces a pending FINRA arbitration alleging that a client lost $700,000 due to breach of fiduciary duty, unsuitable investment recommendations, breach of written contract, and misrepresentation related to a direct investment made in October 2022. The complaint involves a “Direct Investment – DPP & LP Interests,” which typically refers to direct participation programs or limited partnership interests such as oil and gas partnerships, real estate limited partnerships, or other alternative investments.
Can investors recover losses involving Concorde Investment Services?
Yes. Investors who suffered losses due to unsuitable recommendations, breach of fiduciary duty, or misrepresentation by Concorde Investment Services advisors may be entitled to recover their losses through FINRA arbitration. Concorde, like all FINRA member firms, is subject to industry rules requiring fair dealing with customers and suitability in investment recommendations.
What is FINRA arbitration?
FINRA arbitration is a streamlined dispute resolution process specifically designed for securities-related claims between investors and brokers or brokerage firms. It offers a faster, more cost-effective alternative to traditional court litigation. Most cases are resolved within 12-16 months. Claims generally must be filed within six years of the incident.
What are direct participation programs (DPPs) and why are they risky?
Direct participation programs are investment vehicles that pass income, gains, losses, and tax benefits directly to investors. They include oil and gas partnerships, real estate limited partnerships, equipment leasing programs, and similar investments. DPPs are risky because they are typically illiquid (cannot be easily sold), charge high fees (often 10-15% upfront), lack transparency, and expose investors to significant operational and market risks. They are generally suitable only for sophisticated, high-net-worth investors who can afford to lose their entire investment.
What is breach of fiduciary duty?
Breach of fiduciary duty occurs when an investment adviser fails to act in their client’s best interest. Investment advisers and investment adviser representatives owe clients a fiduciary duty—the highest standard of care under securities law. This requires putting the client’s interests ahead of their own, fully disclosing conflicts of interest, and dealing honestly and fairly. Recommending investments that generate high commissions for the advisor but are unsuitable for the client can constitute a breach of fiduciary duty.
What should I do if I lost money in an alternative investment?
First, gather all documentation including account statements, private placement memorandums, subscription agreements, and correspondence with your advisor. Calculate your total losses by comparing what you invested to your current value. Review all disclosure documents for information about fees, risks, and conflicts that may not have been properly explained. Then consult with a securities attorney who can evaluate your potential claim and explain your recovery options through FINRA arbitration. Remember that claims generally must be filed within six years.
About Patil Law, P.C.
Patil Law, P.C. is a securities litigation firm dedicated to representing investors who have suffered losses due to broker misconduct, unsuitable recommendations, and securities fraud. Founded in 2018 by attorney Chetan Patil, the firm focuses exclusively on FINRA arbitration and investment loss recovery.
With over 15 years of combined experience in securities law, Patil Law has successfully recovered more than $25 million for clients across 1,000+ cases. Attorney Chetan Patil earned his law degree from Case Western Reserve University School of Law. Attorneys Gabriela Dubrocq and Patricia Herrera earned their law degrees from University of Miami. The firm handles cases nationwide involving unauthorized trading, churning, unsuitable investments, breach of fiduciary duty, and failure to supervise.
Patil Law works on a contingency fee basis, meaning clients pay no attorney fees unless the firm successfully recovers money on their behalf. All consultations are free and confidential.
Disclaimer: The information in this article is based on FINRA BrokerCheck records and public arbitration filings. The allegations described are pending and unproven. All investors are entitled to fair treatment under securities laws. This is attorney advertising. Prior results do not guarantee a similar outcome. This communication is for informational purposes only and does not create an attorney-client relationship.