In a recent development, a serious allegation has been brought against Christopher Kirkland, a broker and investment advisor associated with Avantax Investment Services, Inc. (CRD 13686). According to the pending customer dispute filed on August 22, 2023, the customer alleges that certain investments purchased through Kirkland were either unsuitable or unauthorized, resulting in a staggering potential loss of $392,914.69.
This case has significant implications for investors who have entrusted their financial well-being to Kirkland and Avantax Investment Services. The suitability and authorization of investments are crucial factors in maintaining investor confidence and ensuring the integrity of the financial advisory industry. Allegations of this nature can erode trust and raise concerns about the practices employed by the advisor and the firm.
As the investigation unfolds, investors who have worked with Christopher Kirkland or Avantax Investment Services, Inc. are advised to closely monitor the situation and assess the potential impact on their portfolios. It is essential for investors to remain vigilant and proactive in safeguarding their financial interests, particularly when faced with such serious allegations.
Understanding the Allegation and FINRA Rule
Table of Contents
The customer dispute revolves around the suitability and authorization of investments. Suitability refers to the obligation of financial advisors to recommend investments that align with their clients’ financial goals, risk tolerance, and overall investment profile. Unauthorized transactions, on the other hand, involve the execution of trades or purchases without the explicit consent of the investor.
FINRA Rule 2111, known as the “Suitability Rule,” requires brokers and investment advisors to have a reasonable basis to believe that a recommended investment or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as age, financial situation, investment objectives, and risk tolerance.
Violations of the Suitability Rule can result in disciplinary action by FINRA, as well as potential legal consequences. Investors who believe they have been subjected to unsuitable or unauthorized investments have the right to seek recourse and recover losses through various channels, including FINRA arbitration.
The Importance for Investors
The allegation against Christopher Kirkland and Avantax Investment Services, Inc. serves as a stark reminder of the importance of investor vigilance and due diligence. Investors must remain proactive in monitoring their investments and the activities of their financial advisors.
Regular review of account statements, trade confirmations, and other financial documents is crucial in identifying any discrepancies or suspicious activities. Investors should not hesitate to ask questions, seek clarification, and raise concerns if they suspect any irregularities in their investments.
Moreover, investors should thoroughly research their financial advisors and the firms they are associated with. Utilizing resources such as FINRA BrokerCheck can provide valuable insights into an advisor’s background, regulatory history, and any previous customer disputes or disciplinary actions.
Red Flags and Recovering Losses
Investors should be aware of certain red flags that may indicate financial advisor malpractice:
- Unexplained or excessive trading activity
- Investments that deviate significantly from the agreed-upon strategy
- Lack of transparency or reluctance to provide information
- Pressuring clients to make hasty investment decisions
If investors suspect they have fallen victim to unsuitable or unauthorized investments, it is crucial to act promptly. Seeking the guidance of experienced investment fraud attorneys can be a vital step in protecting their rights and recovering losses.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Christopher Kirkland and Avantax Investment Services, Inc. They offer free consultations to clients and have a proven track record of successful financial recoveries for investors, with an impressive 98% success rate.
Investors who have suffered losses due to the alleged misconduct of Christopher Kirkland or Avantax Investment Services, Inc. are encouraged to contact Haselkorn & Thibaut at their toll-free number: 1-888-885-7162 . The firm operates on a “No Recovery, No Fee” policy, ensuring that clients can seek justice without added financial burden.
In conclusion, the pending customer dispute against Christopher Kirkland and Avantax Investment Services, Inc. underscores the significance of investor protection and the need for accountability in the financial advisory industry. By staying informed, vigilant, and seeking appropriate legal counsel when necessary, investors can safeguard their financial well-being and pursue the recovery of losses in cases of malpractice or misconduct.
