Robert Russel Tweed (also known as Rusty Tweed) of San Marino California the owner of Tweed Financial Services and former stockbroker of Concorde Investment Services LLC and Cabot Lodge Securities LLC has been barred as stockbroker and investment adviser representative by Securities Exchange Commission (SEC) according to an Order founded on allegations of Tweed misleading Athenian Fund investors. In the Matter of Robert Russel Tweed Administrative Proceeding File No. 3-19881 (July 16, 2020).
Before barring Tweed, SEC obtained a final judgement against him that permanently enjoined him from violating federal securities laws. Civil Action No. 17-cv-07251-FMO-E (Apr. 27, 2020). SEC alleged that Tweed and Tweed Financial Services misled investors of Athenian Fund.
According to the SEC Complaint, Tweed created and controlled Athenian Fund which was an investment fund meant to serve as a pooled investment vehicle. The regulator noted that $1,700,000.00 had been raised by 22 investors. Their funds were allegedly not placed into the right vehicles, and Tweed knew this but kept quiet about it.
Funds directed to Quantitative Analytics Master Fund (QAMF) were not invested but instead tied up in a third party loan. With the limited proceeds that Tweed received back from QAMF’s manager, Tweed invested Athenian Fund in a business which Tweed’s friend operated. Neither QAMF nor the software business generated any profit, as the manager of QAMF was indicted for bank fraud and the software business filed for bankruptcy.
Tweed allegedly failed to disclose to investors that there were losses in Athenian Fund because of the bad QAMF and software company investments. SEC stated that customers continued receiving statements which reflected that the underlying assets of Athenian had flat or positive returns. Investors were not told about unprofitable and illiquid investments in the portfolio. SEC accused Tweed of violating Investment Advisers Act Section 206(4) and Rule 206(4).
FINRA Public Disclosure shows that Tweed has been identified in 15 customer initiated investment related disputes containing accusations of his harmful actions while employed by securities broker dealers including Concorde Investment Services and Cabot Lodge Securities. On May 6, 2018, a customer filed an investment related complaint concerning Tweed’s activities where the customer requested $75,000.00 in damages based on allegations of poor performance and misrepresentation in regard to their investment in Vertical US Recovery Fund II.
On September 6, 2018, another customer filed an investment related complaint involving Tweed’s conduct where the customer sought $150,000.00 in damages supported by accusations of unsuitable Texas Energy investments by Tweed at Cabot Lodge Securities. Tweed is also referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested $500,000.00 in damages founded on allegations that Tweed provided unsuitable recommendations to them as it pertained to private placements and real estate securities. FINRA Arbitration No. 19-01101 (Apr. 22, 2019).
On September 30, 2020, a different customer initiated investment related FINRA securities arbitration claim regarding Tweed’s conduct was resolved for $325,000.00 in damages based upon accusations of Tweed selling unsuitable direct participation program interests or limited partnership interests to the customer when Tweed was associated with Concorde Investment Services. FINRA Arbitration No. 19-01899. According to the claim, the direct investments were misrepresented.
Tweed is also the subject of a customer initiated investment related FINRA securities arbitration claim where the customer sought $1,750,000.00 in damages based on allegations that Tweed breached a fiduciary duty to the customer in reference to LP and DST investments purchased through Tweed at Concorde Investment Services. FINRA Arbitration No. 20-03444 (Oct. 9, 2020). According to the claim, the customer had been defrauded on the direct investment transactions. Accusations also include unsuitable trading and negligence by Tweed.