March, 2025 | Based in Overland Park, KS
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Key Details About Russell Edward Fieger
- Full Name: Russell Edward Fieger
- CRD Number: 4122326
- Current Location: Overland Park, KS
- Current Employers: Colorado Financial Service Corporation (since April 2024) and Cornerstone Securities LLC (since May 2006)
- Office Address: 6710 W 121st St, Suite 200, Overland Park, KS 66209
- Registration Status: Currently registered as a broker with FINRA and as an investment adviser representative in multiple states
- State Licenses: Licensed as a securities agent in 7 states and as an investment adviser representative in 6 states
- Experience: In the financial industry since 2000
- FINRA BrokerCheck: One regulatory action, one settled customer dispute, and one pending customer dispute
- Previous Employers: LPL Financial LLC (April-May 2024), Crown Capital Securities, L.P. (2012-2024), Brookstone Securities, Inc. (2006-2012), Cambridge Investment Research (2005), Pruco Securities (2000-2005)
- Ability to Recover Losses: Investors may be eligible for FINRA arbitration depending on timing and circumstances
In-Depth Investigation of Russell Edward Fieger’s Investment Practices
Russell Edward Fieger, a financial advisor currently affiliated with Colorado Financial Service Corporation and Cornerstone Securities LLC in Overland Park, Kansas, has established a concerning pattern of regulatory issues and customer complaints throughout his career. Over his 25 years in the financial services industry, Mr. Fieger has been the subject of a state regulatory action resulting in restitution, a settled customer complaint, and a pending customer dispute alleging significant investor harm.
Our investigation has uncovered a pattern focused on complex and potentially unsuitable investment recommendations, particularly involving exchange-traded funds (ETFs) and alternative investments such as direct participation programs (DPPs) and oil and gas limited partnerships. These products often carry significant risks and complexities that may not be suitable for many retail investors without comprehensive understanding and risk tolerance.
What makes this case particularly concerning is the regulatory finding by the Kansas Securities Commissioner that Mr. Fieger breached his fiduciary duty to clients and made unsuitable investment recommendations. This official sanction suggests that regulatory authorities have already determined that Mr. Fieger’s conduct fell below industry standards and legal requirements. Additionally, his current pending FINRA arbitration case involving allegations of misrepresentation and unsuitable investment recommendations indicates that questionable sales practices may have continued despite previous regulatory action.
Professional Background and Employment History
Russell Edward Fieger began his financial services career in February 2000 with Pruco Securities, LLC, the broker-dealer affiliate of Prudential. After establishing his securities industry foundation there until May 2005, Mr. Fieger’s career has been characterized by relatively frequent firm changes:
- Pruco Securities, LLC (February 2000 – May 2005)
- Cambridge Investment Research (May 2005 – August 2005)
- Brookstone Securities, Inc. (March 2006 – June 2012)
- Crown Capital Securities, L.P. (July 2012 – April 2024)
- LPL Financial LLC (April 2024 – May 2024, a notably brief one-month tenure)
- Colorado Financial Service Corporation (April 2024 – Present)
In parallel, Mr. Fieger has maintained an investment advisory affiliation with Cornerstone Securities LLC since May 2006, serving as its CEO. The BrokerCheck report indicates he has also been involved with other investment-related businesses, including Blue River Capital LLC as a partner from March 2014 to November 2019.
This pattern of relatively frequent firm changes, particularly his brief one-month stint at LPL Financial, raises questions about potential issues with compliance and supervision. Industry experts note that financial advisors with problematic regulatory histories often move between firms, sometimes to avoid enhanced scrutiny or when firms discover concerning practices.
Mr. Fieger holds multiple securities licenses, including:
- General Securities Representative (Series 7) since February 2000
- General Securities Principal (Series 24) since September 2003
- Investment Company Products/Variable Contracts Representative (Series 6) since January 2023
- Uniform Combined State Law (Series 66) since March 2000
- Securities Industry Essentials (SIE)
His Series 24 principal license is particularly significant, as it qualifies him not only to transact securities but also to supervise others in the industry. This heightened qualification suggests extensive knowledge of industry rules and regulations, which makes the regulatory findings against him especially troubling.
Regulatory Action and Customer Complaints
Kansas Securities Commissioner Regulatory Action (2014)
On March 18, 2014, the Kansas Securities Commissioner took formal regulatory action against Russell Fieger related to his recommendations of leveraged and leveraged-inverse exchange-traded funds (ETFs). The order specifically found that Mr. Fieger’s recommendations of these complex products were both unsuitable for his clients and constituted a breach of his fiduciary duty.
Leveraged and inverse ETFs are sophisticated products designed for short-term trading rather than long-term investment. They use financial derivatives and debt to amplify the returns of an underlying index (in the case of leveraged ETFs) or to provide returns that move in the opposite direction of an index (in the case of inverse ETFs). These products are subject to “volatility decay” that makes them generally unsuitable for buy-and-hold investors.
The regulatory action resulted in an order requiring Mr. Fieger to pay $86,600 in restitution to affected clients. According to the BrokerCheck report, the payment was structured with an initial $5,000 payment followed by $1,700 monthly payments until the full amount was paid.
This regulatory action is significant because it represents an official finding by a state securities regulator that Mr. Fieger failed to act in his clients’ best interests and recommended investments that did not align with their investment profiles.
Settled Customer Complaint (2014)
Directly related to the Kansas regulatory action was a customer complaint filed on December 15, 2010, alleging unsuitable investments in over-the-counter (OTC) equity securities. This complaint was ultimately settled on March 18, 2014—the same date as the regulatory action—for $86,600, with no financial contribution from Mr. Fieger personally.
The timing and amount of this settlement suggest it was directly tied to the regulatory action by the Kansas Securities Commissioner. This connection indicates that regulatory authorities validated the customer’s claims of unsuitable investment recommendations.
Pending FINRA Arbitration (2024)
Most concerning for current investors is a recent FINRA arbitration case (Docket #24-02131) filed on October 3, 2024. This pending case involves allegations of:
- Breach of fiduciary duty
- Lack of suitability
- Impermissible overconcentration
- Misrepresentation and omission of material information
These allegations relate to Mr. Fieger’s recommendations of alternative investments, specifically direct participation programs (DPPs) and oil and gas limited partnerships. The claimants are seeking $325,000 in damages, a substantial amount that reflects potential significant investor harm.
In Mr. Fieger’s response to the allegations, he indicates that one of the clients involved purchased a $25,000 oil and gas product on February 4, 2015. He also claims never to have met one of the claimants, which may reflect an attempt to distance himself from responsibility for the recommendation.
This pending arbitration is particularly concerning because it suggests that despite the previous regulatory action and settlement, Mr. Fieger may have continued recommending complex, high-risk products without adequate disclosure or consideration of suitability.
Understanding the High-Risk Investments at Issue
The regulatory action and customer complaints against Russell Fieger involve several complex investment products that warrant careful explanation to understand the potential risks to investors.
Leveraged and Inverse ETFs
These exchange-traded funds, which were the subject of the Kansas regulatory action, use derivatives and debt to magnify the returns of an underlying index or to provide returns that are opposite to the performance of an index. Key characteristics include:
- Compounding Risk: Daily compounding effects can cause the performance of these ETFs to diverge significantly from their benchmarks over periods longer than one day.
- Volatility Decay: In volatile markets, these products may lose value even when the underlying index ends up where it started due to the mathematical effects of daily rebalancing.
- Complexity: The structure of these products is difficult for many retail investors to understand fully.
- Intended for Short-Term Trading: Financial industry regulators, including FINRA, have issued specific warnings that these products are typically not suitable for investors who plan to hold them for more than one trading day.
Given these characteristics, leveraged and inverse ETFs require sophisticated monitoring and trading strategies and are generally unsuitable for typical retail clients with long-term investment horizons—precisely the finding made by the Kansas Securities Commissioner regarding Mr. Fieger’s recommendations.
Direct Participation Programs (DPPs) and Oil & Gas Limited Partnerships
The pending FINRA arbitration involves allegations related to these alternative investments, which carry their own significant risks:
- Limited Liquidity: DPPs and limited partnerships typically cannot be easily sold on public markets, often requiring investors to hold them for extended periods, sometimes 7-10 years or longer.
- High Fees and Expenses: These products often involve substantial upfront and ongoing costs that significantly reduce potential returns.
- Regulatory Complexity: Oil and gas partnerships, in particular, involve complex tax treatment and regulatory considerations that many investors may not fully understand.
- Operational Risks: In oil and gas investments, fluctuating commodity prices, drilling failures, and extraction challenges create additional layers of risk beyond typical market volatility.
- Concentration Risk: The pending complaint alleges “impermissible overconcentration,” suggesting that Mr. Fieger may have recommended allocating an inappropriate percentage of clients’ portfolios to these high-risk investments.
These products represent a category of investments that financial regulators have repeatedly identified as requiring particularly careful suitability analysis and robust disclosure to ensure investors fully understand what they’re purchasing.
Red Flags for Investors Working with Financial Advisors
The pattern of regulatory issues and customer complaints against Russell Fieger highlights several warning signs that investors should watch for when working with any financial advisor:
1. Recommendations of Complex Products Without Clear Explanation
When an advisor recommends sophisticated products like leveraged ETFs, inverse ETFs, or alternative investments without thoroughly explaining how they work, what risks they carry, and why they are appropriate for your specific situation, this could indicate potential unsuitability.
2. Concentration in High-Risk Investments
If a significant percentage of your portfolio is directed toward specialized products like oil and gas partnerships or other alternative investments, this concentration may indicate inappropriate risk levels that don’t align with typical diversification principles.
3. Misalignment with Stated Investment Objectives
Recommendations that don’t clearly align with your documented investment goals, time horizon, and risk tolerance may signal that an advisor is prioritizing products that generate higher commissions rather than serving your best interests.
4. Frequent Firm Changes
Mr. Fieger’s history of multiple broker-dealer affiliations, including a very brief one-month stint at LPL Financial, could suggest potential issues with compliance oversight or concerns about his sales practices that prompted transitions.
5. Regulatory History
Any prior regulatory action, especially one finding a breach of fiduciary duty, represents a significant concern and should prompt careful scrutiny of an advisor’s current recommendations.
Guidance for Potentially Affected Investors
If you’ve worked with Russell Edward Fieger and have concerns about investments he recommended, particularly leveraged ETFs, inverse ETFs, or alternative investments like oil and gas partnerships, consider taking these steps:
1. Review Your Investment Documentation
Carefully examine all paperwork related to your investments, including:
- Account opening documents that outline your investment objectives and risk tolerance
- Offering materials or prospectuses for any alternative investments
- Account statements showing performance history
- Any written communications with Mr. Fieger regarding his recommendations
2. Assess Suitability and Disclosures
Consider whether the investments recommended were appropriate given your:
- Investment objectives and financial goals
- Risk tolerance and capacity to absorb losses
- Time horizon and liquidity needs
- Overall investment knowledge and experience
- Total investment portfolio and diversification
Also evaluate whether all material risks and features of the investments were adequately disclosed and explained to you before you invested.
3. Document Your Understanding and Communications
Make detailed notes about:
- Your understanding of the investments at the time they were recommended
- Any representations made by Mr. Fieger about risks, returns, or other features
- Questions you asked and answers you received
- Any concerns you expressed and how they were addressed
4. Understand Time Limitations
Be aware that FINRA arbitration claims typically must be filed within six years of the event giving rise to the claim. If you believe you received unsuitable investment recommendations, consulting with an attorney promptly is important to preserve your rights.
How Our Investment Fraud Attorneys Can Help
Our specialized investment fraud attorneys have extensive experience representing investors who have suffered losses due to unsuitable investment recommendations, particularly involving complex products like those recommended by Russell Edward Fieger. Here’s how we can assist:
Comprehensive Case Evaluation
We provide a thorough, no-cost initial evaluation of your situation to determine if you have a viable claim for recovery. This includes:
- Analyzing the suitability of investment recommendations based on your documented investment profile
- Reviewing disclosures provided for complex investments
- Assessing potential violations of FINRA rules or fiduciary duties
- Calculating potential damages from unsuitable investment recommendations
Expert FINRA Arbitration Representation
If you have a viable claim, our attorneys can represent you in the FINRA arbitration process, which is typically the forum for resolving disputes with broker-dealers. Our approach includes:
- Filing a detailed statement of claim documenting all allegations
- Gathering and presenting evidence of unsuitable recommendations or misrepresentations
- Deposing relevant witnesses, including potentially Mr. Fieger himself
- Developing expert testimony regarding industry standards
- Negotiating potential settlements or presenting your case at an arbitration hearing
Contingency Fee Approach
We handle investment fraud cases on a contingency fee basis, meaning you pay legal fees only if we successfully recover compensation for your losses. This arrangement:
- Aligns our interests with yours in pursuing maximum recovery
- Provides access to high-quality legal representation regardless of your current financial situation
- Demonstrates our confidence in our ability to successfully resolve your claim
Comprehensive Recovery Strategy
We pursue all potential avenues for recovery, which may include:
- Claims against the brokerage firms that employed Mr. Fieger for failing to adequately supervise his activities
- Claims related to specific unsuitable recommendations
- Claims based on material misrepresentations or omissions
- Claims related to breach of fiduciary duty
The official regulatory finding by the Kansas Securities Commissioner that Mr. Fieger breached his fiduciary duty and made unsuitable recommendations provides strong support for potential claims by affected investors. Similarly, the pending FINRA arbitration suggests that other investors have identified concerning practices that may extend to additional clients.
If you invested with Russell Edward Fieger and have concerns about leveraged ETFs, oil and gas partnerships, or other complex investments he recommended, contact our experienced investment fraud attorneys at Call 800-950-6553 today to schedule your confidential, no-obligation consultation.
