By A. Daniel Woska

            The object of your affection, your most precious property, the thing you have worked to accumulate for years is systematically and intentionally placed in the hands of someone who professes to be an expert in investing your property. The person has explained that he is a “Registered Investment Adviser” licensed pursuant to the 1940 Investment Adviser’s Act and someone who had to study for a very difficult exam.  He looks good, he sounds good, he explains he is investing money for hundreds of clients in one thousand different accounts. You have previously interviewed three other prospects and you are weary of the interviewing prospect and all these RIA’s sound the same and this one has a large office with nice furniture and a radio show as well as very plush furniture and surroundings so you say “OK, I will hire you to be my “Registered Investment Adviser”.

            A contract is presented that contains multiple pages and says it is an “Investment Advisory Contract” so it must be some protection for you.  You never consult with an attorney who is familiar with the narrowly practiced areas of “Securities Law” or  … Read the rest