Greg Fullmer: A financial advisor exposed investors to higher risk
Greg Fullmer Morgan Stanley-based is a financial advisor in LA with a history of legal disputes. What’s worse is that his current disclosures indicate he hasn’t improved on a single thing.
He claims to offer boutique services to ultra-high net-worth families, foundations, and individuals. However, it seems he traps them in disadvantageous agreements which expose them to unnecessary risks and other threats.
As an investor, it’s your right to know the good and the bad of a financial advisor. The following review will help you see the flaws Greg is trying to hide from you and his other prospective clients:
Who is Greg Fullmer Morgan Stanley?
Greg is the managing director of his firm which offer private wealth management to ultra-high-net-worth individuals, foundations, and families. His firm offers multiple wealth management services including hedging strategies, investment management, risk management, philanthropy management, pre-liquidity planning, and more.
At first, Greg and his firm seem like any other boutique service provider. But Greg Full Morgan Stanley has very suspicious and shady provisions in his terms and conditions which make it extremely difficult to trust him.
Moreover, Greg isn’t even his real name. The full name of this guy is Larry Greg Fullmer. He has changed his name from Larry Fullmer to Greg Fullmer because of his long history of legal disputes.
I have shared the legal disputes he has had with his clients in the next section of this review:
Red Flags in Greg Fullmer’s Disclosures:
Breach of Fiduciary Duty, Unsuitable Recommendations, and Other Disputes
The FINRA BrokerCheck profile of Greg Fullmer shows two legal disputes. FINRA BrokerCheck is a database where you can find out all the necessary information about financial advisors such as their industry experience, their qualifications, and the legal conflicts they have had with their clients.
FINRA BrokerCheck : Is the digital tool under Financial Industry Regulatory Authority that avails investors with significant information regarding brokers and broker firms. The facility subsumes information of 3500 brokerage firms, 160000 branch offices and 625000 registered securities.
The first dispute listed on Greg’s profile is dated 9-11-2002. Here, the claimant alleged excessive trading and failure to follow asset allocation guidelines between May 1998 and May 2002. They requested $506,250.00 in damages but the firm denied this claim.
Greg’s second dispute was in 2010. Here, the client alleged breach of fiduciary duty, misrepresentation and unsuitable recommendation of a hedge fund. They requested $1,000,000.00 in damages and settled the case for $451,550.00.
In his response, Greg said that it was the fault of UBS (his employer at that time) and not his.
However, you can get an understanding of how skilled Greg Fullmer Morgan Stanley truly is. Keep in mind that people rarely file a legal claim against their fiduciary. So, for him to have two legal disputes listed on his profile, shows a lot about his professionalism and priorities.
Charging Performance-based Fees
Another huge red flag in Greg’s disclosures is that he charges performance-based fees. When your advisor charges performance-based fees, he earns money only when he outperforms a specific index or benchmark.
On paper, it seems like a viable and attractive fee structure. But in reality, it’s a disaster. In order to beat the benchmark, financial advisors employ high-risk strategies, which can be detrimental to your financial well-being in the long run.
High-risk strategies aren’t suitable for most portfolios. They are particularly bad for those who want long-term security and growth. Studies show that advisors who charge performance-based fees, double down on the risk and end up generating terrible returns for their clients.
What’s worse is that if you suffer any losses because of these strategies, you can’t do anything about it. The agreement you sign when you become a client of Greg Fullmer Morgan Stanely ensures that you can’t hold him legally responsible for anything.
12b-1 Fee Conflict
Apart from charging performance-based fees, this firm also charges the 12b-1 fee. It’s a marketing fee that adds no value to the investment. Instead, it only increases the cost of the investment, reducing the ROI you’ll get.
The 12b-1 fee is heavily looked down upon in the finance industry simply because of these reasons. This fee goes straight into the pocket of the advisor and is one of the hidden charges through which advisors steal funds from their clients.
The SEC conducted a study to see if this marketing fee has any impact on the returns of an investment. They found no difference between the returns of the investments that charge this fee and those that don’t.
Hence, you should be wary of financial advisory firms that charge this shady fee. Sadly, Greg Fullmer and his firm would fall into that category as well.
Making Money from Commissions
A prominent red flag in Greg’s services is that a lot of his revenue comes from commissions. He and his firm get commissions from the companies whose investments they recommend to others.
Earning commissions from these companies can influence the suggestions of your advisor substantially. They might ignore your financial requirements and goals to make an extra buck.
Greg Fullmer Morgan Stanley-based is not a good option for any wise investor. His history of legal disputes and his current disclosures, both suggest he doesn’t have his clients’ interests in his mind.
You should look for a different financial advisor who actually cares about his clients instead of Greg. The industry has plenty of options, you don’t have to stick with the terrible one.
Greg Fullmer of Morgan Stanley has a history of facing legal disputes from his clients and his current provisions suggest that he hasn’t improved even by one bit. You should stay miles away from such greedy and selfish advisors.
- Has faced disputes for breach of fiduciary duty
- Charges hidden fees
- Makes money from commissions