March 14, 2025 | Westlake, TX
If you’ve experienced financial losses in your investment accounts, don’t wait to take action. Call 800-950-6553 today to speak with our experienced securities attorneys who can help determine if you have grounds for recovery.
Critical Information About Thomas Gene Williams
- Full Name: Thomas Gene Williams
- CRD Number: 7273101
- Current Location: Westlake, TX
- Current Employer: Charles Schwab & Co., Inc.
- Office Address: 3000 Schwab Way, Westlake, TX 76262
- Registration Status: Currently registered with 2 Self-Regulatory Organizations and 51 U.S. states/territories
- State Licenses: Licensed in all 50 states plus District of Columbia
- Experience: In the financial industry since August 2020
- FINRA BrokerCheck: One pending customer dispute involving allegations of false and misleading information
- Previous Employers: TD Ameritrade, Inc.
- Ability to Recover Losses: Potential for recovery through FINRA arbitration for investors who received misleading information
Investigation Overview: Recent Customer Complaint
Thomas Gene Williams, a registered representative currently employed by Charles Schwab & Co., Inc., is facing serious allegations from a customer regarding options trading. According to his FINRA BrokerCheck report, on January 28, 2025, a customer filed a complaint alleging that Mr. Williams “provided false and misleading information concerning an option position” in December 2024. The customer claims they relied on this incorrect information to execute trades in an attempt to minimize losses they erroneously believed existed.
This complaint is particularly concerning given the substantial alleged damages of $235,000, which represents a significant potential financial loss for an individual investor. The complaint is currently listed as pending, which means the allegations have not yet been proven or formally adjudicated.
Background and Professional History
Thomas Gene Williams has a relatively short history in the financial services industry, having obtained his first securities registration in August 2020. Despite his brief tenure, he has already accumulated licenses to operate in all 50 states plus the District of Columbia, suggesting a rapid expansion of his client base and activities.
Mr. Williams began his financial services career with TD Ameritrade, Inc. in October 2020, where he worked until November 2023. He subsequently joined Charles Schwab & Co., Inc. in November 2023, where he currently remains employed as a registered representative.
Prior to entering the financial services industry, Mr. Williams’s employment history shows no previous financial experience. His background includes:
- Expo at Hendel’s Restaurant (September 2019 – Present)
- Student at University of Missouri (August 2014 – August 2019)
- Lead Server at Hollyberry Catering (September 2019 – November 2019)
- Lifeguard at Koch Park Family Aquatic Center (May 2016 – September 2017)
- Actor at Interactive Theatre Troupe (January 2016 – September 2017)
This non-traditional path into the financial services industry, without prior securities experience or professional designations, raises questions about the depth of training and expertise Mr. Williams brought to his role when advising clients about complex financial products like options.
Understanding Options Trading: Risks and Complexities
The pending complaint against Mr. Williams specifically involves options trading, one of the more complex and potentially risky investment strategies available to retail investors. To understand the potential severity of the alleged misleading information, it’s important to recognize the inherent risks and complexities of options:
Options Trading Fundamentals
Options are derivative contracts that give buyers the right, but not the obligation, to buy (call options) or sell (put options) an underlying asset at a predetermined price (strike price) before a specific date (expiration date). While they can be used for hedging or generating income, they are often employed for speculative purposes.
Inherent Complexities and Risks
- Complex Pricing Mechanics: Options pricing is influenced by multiple factors, including the underlying asset’s price, time until expiration, volatility, interest rates, and dividends. These complex interactions can be difficult for even experienced investors to fully understand.
- Leverage Effect: Options provide leverage, meaning small movements in the underlying asset can result in disproportionately large gains or losses in the option’s value. This amplification effect increases both potential returns and risks.
- Time Decay: Options are wasting assets that lose value as they approach expiration (known as “theta decay”), creating a time pressure component that doesn’t exist with traditional stock investing.
- Volatility Sensitivity: Options prices can change dramatically based on market volatility expectations, irrespective of the direction of the underlying asset’s price movement.
- Strategy Complexity: Advanced options strategies (spreads, straddles, iron condors, etc.) involve multiple contracts and have complex risk/reward profiles that may not be immediately apparent.
Given these complexities, providing accurate and clear information about options positions is critical. Even small misunderstandings or misrepresentations can lead to significant financial losses, as alleged in the complaint against Mr. Williams.
Red Flags for Investors: When to Question Your Broker’s Advice
The allegations against Thomas Gene Williams highlight several potential red flags that investors should be vigilant about when working with any financial professional, especially one with limited industry experience:
1. Misrepresentation or Inaccurate Information
When financial advisors provide misleading or incorrect information about investment positions, it can lead to poor decision-making. Always verify information about your current positions through multiple sources, including account statements and the brokerage firm’s online platform.
2. Limited Experience in Complex Products
Brokers with limited experience or training may not fully understand the complexities of certain investment products, particularly options or other derivatives. Before taking recommendation on complex products, inquire about your advisor’s specific experience and expertise in that area.
3. Rapid Expansion of State Registrations
When a newer broker quickly obtains licenses in numerous states, it could indicate a focus on rapid growth rather than developing depth of knowledge in investment products. While not automatically problematic, it’s worth considering whether the advisor has had sufficient time to build expertise.
4. Recommendations That Don’t Align with Your Goals
If you receive recommendations for complex trading strategies that don’t clearly align with your stated investment objectives and risk tolerance, this should raise concerns. Options trading is often speculative by nature, which may not be appropriate for many investors.
5. Pressure to Act Quickly
The options market often involves time-sensitive decisions, but pressure to act immediately without fully understanding the trade rationale might indicate problematic practices. Always ensure you understand the reasoning behind any recommended trade.
6. Unclear Explanation of Risks
Every investment carries risks, and these should be clearly communicated. If your broker downplays or fails to adequately explain the risks of a particular investment strategy, especially with options trading, consider it a potential warning sign.
Legal and Regulatory Framework: Standards for Investment Recommendations
Financial professionals like Thomas Gene Williams are subject to specific regulatory standards when making investment recommendations. Understanding these standards can help investors evaluate whether they’ve received proper guidance:
FINRA Rule 2111: Suitability
This rule requires that brokers have a reasonable basis to believe a recommended transaction or investment strategy is suitable for the customer based on their investment profile. For options trading, this means ensuring the client:
- Understands the risks involved
- Has appropriate risk tolerance
- Has sufficient financial resources to bear potential losses
- Has investment objectives that align with the speculative nature of many options strategies
FINRA Rule 2210: Communications with the Public
Financial advisors must ensure all communications with clients are:
- Fair and balanced
- Not misleading
- Provide a sound basis for evaluating facts
- Do not omit material information
The allegations against Mr. Williams suggest potential violations of this rule if it’s found he provided misleading information about the client’s options position.
SEC Regulation Best Interest (Reg BI)
Since June 2020, broker-dealers and their representatives must comply with Regulation Best Interest, which requires them to:
- Act in the best interest of retail customers
- Provide full and fair disclosure of material facts
- Exercise reasonable care, skill, and diligence
- Identify and address conflicts of interest
Options-Specific Requirements
FINRA has additional specific requirements for brokers dealing with options, including:
- Special registration and qualification requirements
- Enhanced disclosure obligations
- Specific supervisory procedures
- Requirements to provide the Options Disclosure Document to clients
If the allegations in the pending complaint are substantiated, they could indicate failures to meet these regulatory standards, potentially giving affected investors grounds for recovery.
Options for Recovery: What Investors Can Do
If you’ve worked with Thomas Gene Williams or any financial advisor and believe you’ve received misleading information about your investments, particularly complex products like options, there are several potential avenues for recovery:
1. FINRA Arbitration
The Financial Industry Regulatory Authority (FINRA) provides a forum for resolving disputes between investors and securities firms or individual brokers. This process is generally faster and less expensive than traditional litigation.
2. Securities Litigation
In some cases, particularly those involving significant damages or systematic misconduct, securities litigation may be appropriate.
3. Regulatory Complaints
Filing complaints with regulators like FINRA, the SEC, or state securities regulators can trigger investigations that may result in disciplinary actions.
4. Negotiated Settlements
Many disputes are resolved through negotiations before formal arbitration or litigation, often resulting in confidential settlements.
Important Time Limitations
Be aware that strict time limitations apply to investment-related claims:
- FINRA arbitration claims generally must be filed within six years of the event giving rise to the claim
- State statutes of limitations may provide shorter timeframes for certain claims
- The sooner you take action, the better your chances of preserving evidence and witness recollections
How Our Investment Fraud Attorneys Can Help
If you believe you’ve received misleading information from Thomas Gene Williams or any financial professional about options trading or other investments, our experienced securities attorneys can assist you in several ways:
- Free Initial Consultation: We offer a complimentary case evaluation to determine if you have grounds for recovery.
- Forensic Account Analysis: Our team will conduct a detailed review of your account statements, trade confirmations, and communications to identify potential misconduct.
- Options Trading Expertise: Our attorneys specialize in cases involving complex investment products, including options trading, and understand the technical nuances that may be critical to your case.
- Contingency Fee Representation: We typically work on a contingency basis, meaning you pay no legal fees unless we recover money for you.
- FINRA Arbitration Experience: Our attorneys have extensive experience navigating the FINRA arbitration process and have successfully represented investors in claims against major brokerage firms.
- Comprehensive Damage Assessment: We work with financial experts to calculate the full extent of your losses, including opportunity costs and other damages you may be entitled to recover.
The pending complaint against Thomas Gene Williams highlights the importance of working with financial professionals who provide clear, accurate information about your investments. If you’ve suffered losses in your investment accounts, don’t wait to take action. Call 800-950-6553 today to speak with our experienced securities attorneys who can help determine if you have grounds for recovery.
