Harbour Investments, Inc. and financial advisor Mark Allen Herding are currently under scrutiny in the financial services industry following serious allegations related to oil and gas investment recommendations. Mark Allen Herding, who is registered under CRD #2239357, is at the center of a client dispute that raises pressing questions about the responsibilities of advisors and the risks associated with complex alternative investments.
Oil and Gas Investment Allegations and the Erosion of Trust
In financial services, trust forms the cornerstone of every advisor-client relationship. Investors count on their financial advisors not just for expert recommendations, but for integrity and transparent guidance. When this trust breaks down, as is alleged in the current dispute involving Mark Allen Herding, the consequences can stretch far beyond mere financial loss.
On March 13, 2026, customers filed a claim stating that Mark Allen Herding recommended an oil and gas investment not for their benefit, but primarily to earn high commissions and fees. The clients allege that instead of being advised to pursue a balanced, diversified portfolio that could generate long-term returns, they were steered toward a risky and illiquid investment product. This, they claim, led to monetary losses, squandered time, and a deep sense of lost trust in the financial advisory process.
Oil and gas investments have long been considered complex and high-risk. These products are generally illiquid, meaning investors may not be able to access their funds easily or at all until the investment matures—if it does at all. Significant fees, commissions, and complex tax structures often accompany these products, making them suitable only for investors who fully understand the risks involved. The allegations against Mark Allen Herding suggest a failure to adequately disclose or consider these crucial factors.
Background and Professional History of Mark Allen Herding
Mark Allen Herding is currently affiliated with Harbour Investments, Inc. but his professional career has spanned several firms including Cambridge Investment Research Advisors, Inc., Cambridge Investment Research, Inc., and LPL Financial LLC. He holds several industry licenses such as the Securities Industry Essentials (SIE), Series 7, Series 6, Series 65, Series 63, and Series 24, which qualify him to sell a wide range of financial products and supervise other brokers.
Movement between firms is not uncommon; however, when coupled with repeated customer complaints, it can signal deeper issues. According to his BrokerCheck report, Mark Allen Herding has three customer disputes on record. The most recent complaint, regarding the oil and gas investment, is still pending. In a previous 2013 case, a client alleged poor performance and failure to follow instructions in a real estate security, seeking $17,000 in damages; this claim was denied by LPL Financial LLC.
| Year | Product | Allegation | Status | Damages Sought |
|---|---|---|---|---|
| 2026 | Oil & Gas | High fees/commissions, unsuitability, lost diversification | Pending | Not specified |
| 2013 | Real Estate Security | Poor performance, failure to follow instructions | Denied | $17,000 |
Studies cited by Investopedia indicate that about 7% of financial advisors have customer complaints listed in regulatory databases—yet remarkably few investors ever conduct background checks on their advisors. This oversight can be costly if an advisor has a history of client disputes or problematic product recommendations.
Rules and Suitability Standards Explained
The regulatory landscape is designed to protect investors from unsound advice and potential conflict of interest. FINRA Rule 2111, known as the Suitability Rule, states that financial advisors must have a reasonable basis for every investment recommendation. In other words, an appropriate investment should match the individual client’s goals, risk tolerance, timeline, and liquidity needs. Advisors must avoid recommending volatile or illiquid products to clients whom they do not suit.
For direct participation programs such as oil and gas investments, FINRA Rule 2310 imposes even stricter suitability requirements. These investments bring unique risks:
- Limited liquidity—difficulty selling or exiting the investment
- Complex tax structures
- High minimum purchase requirements
- Substantial fees and compensation to advisors
Advisors are expected to ensure clients can afford the potential total loss of principal and understand the level of complexity, according to these standards.
Patterns in Investment Fraud and Industry Trends
Cases like the one involving Mark Allen Herding are not isolated. The SEC and FINRA regularly announce enforcement actions against advisors who push high-fee, high-risk products for personal gain. According to recent studies, unsuitable recommendations continue to top the list of investor complaints nationwide. In 2022 alone, over $3 billion was returned to investors as a result of settlements and awards relating to fraudulent or unsuitable investment advice. Oil and gas programs, real estate securities, and non-traded REITs are frequently at the center of these disputes.
It’s important for clients to realize that not all alternative investments are inherently bad, but their higher risk profile makes transparency and suitability paramount. When these factors are ignored, investors can suffer substantial financial harm while advisors profit from significant commissions.
Lessons and Protections for Investors
If the allegations against Mark Allen Herding are found valid, potential consequences may include:
- Financial liability for client losses
- Reputational damage
- Possible regulatory investigations
- Increased difficulty attracting future clients
For investors, the episode reinforces key best practices:
- Check Advisor Backgrounds: Before investing, use FINRA’s BrokerCheck to review your advisor’s history and licenses. This simple step can reveal prior complaints or disciplinary issues.
- Be Cautious of High-Commission Products: Ask your advisor directly how they are compensated for each investment recommendation. Understand the conflict of interest if an advisor earns more by selling you certain products.
- Prioritize Diversification: Avoid concentrating large portions of your portfolio in one alternative or illiquid product, no matter what tax benefits or headline returns are advertised.
- Ask for Full Disclosures: Request detailed explanations of risks, liquidity constraints, and all fees involved before committing funds.
Investment fraud and unsuitable advice can be devastating, especially for retirees or conservative investors. Becoming an educated, proactive investor is essential. If you suspect wrongdoing by your financial advisor, resources like Financial Advisor Complaints can provide additional information on how to proceed.
At the end of the day, the financial services industry relies on a foundation of trust and responsible conduct. Allegations such as those facing Mark Allen Herding at Harbour Investments, Inc. are stark reminders of the need for vigilance, transparency, and regulation to protect investors and maintain confidence in financial markets.
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