By Erwin J. Shustak, Esq.  of Shustak Reynolds & Partners, P.C. posted on Thursday, April 14, 2016.

Erwin J. Shustak

Managing Partner

Location: San Diego, California
New York, New York
Phone: (619) 696-9500 (Ext. 109)
(800) 496-5900 (Ext. 109)
Email: [email protected]

Shustak Reynolds & Partners, P.C., a San Diego based law firm focused in the areas of financial and securities law, is investigating potential claims of current and former clients of RGT Wealth Advisors  involving investments that were recommended by former RGT Wealth Advisors Stanley Sangwon Bae and Ash Narayan, including investments in a Panera Bread loan investment, The Ticket Reserve, also known as FirstDIBZ and other investments. 

RGT Wealth Advisors, a division of RGT Capital Management, Ltd., with offices in Irvine, California and Texas, terminated Stanley Sangwon Bae, along with Ash Narayan, two of its advisors working out of the Irvine, California office. Naryan was terminated February 17, 2016 and Bae on March 3rd. According to filings the firm made with federal authorities, as a result of an internal investigation by RGT, RGT disclosed to the United States Securities Exchange Commission information concerning certain conduct by Narayan and Bae. The SEC subsequently RGT letter requests for documents and information concerning both former advisers. Also according to RGT, a number of RGT clients who dealt with Bae and Narayan made “…certain investments” on their recommendations which lead to their termination from the firm. According to sources, Bae and Narayan were encouraging RGT clients to invest in one or more funds which may not have been approved investments of the firm and which may have been unsuitable for those clients. RGT is, according to its filed documents, “continuing to respond to follow up requests by the SEC”.

According to sources, many RGT clients, particularly those whose accounts were serviced by Bae and Narayan, were encouraged to invest heavily in The Ticket Reserve/FirstDIBZ investment.  Many of those clients were told that Narayan and/or Bae were on the Board of Directors of that company and the investment was promoted as safe, valuable and suitable.  On the statements that many RGT clients received, their investments in Ticket Reserve/FirstDIBZ were carried at a purported market value much higher than the actual amount of their investment which clients assumed meant the investment had increased in value.  There is reason to believe, however, that the actual value of those investments is much lower and the entire company may, in fact, be worthless.

Another investment that Bae and Narayan promoted were loans in a Panera Bread franchise, as well as purportedly safe and “secured” loans to other RGT clients, many of whom are current or former professional sports athletes.  Many of those loans may be in default and there may have been a clear conflict of interest in RGT, Bae and Narayan offering those loan transactions between and amongst RGT clients.   Some RGT clients never received all of the payments that were scheduled to be made on account of those private loans.

We are interested in speaking to current or former RGT Wealth Advisor clients who may have invested in some or all of these investments.  We also have reason to believe that many RGT clients were overbilled asset management fees when the amount of the annual fees were computed on the incorrect, inflated value of those investments.

Shustak Reynolds & Partners, P.C.  focuses its practice on the securities industry and matters affecting broker-dealers, registered representatives and the financial services sector.    For more information, contact Erwin J. Shustak, managing partner, at [email protected], or call 800.496.5900 for a free consultation.

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