Larry (Lawrence) Labine, a former financial advisor at Newbridge Securities Corporation in Scottsdale, Arizona, is facing serious allegations of misconduct and fraudulent behavior. Investors who have suffered losses due to Labine’s actions are now seeking legal recourse to recover their damages. Haselkorn & Thibaut, a national investment fraud law firm, is currently investigating Labine and Newbridge Securities on behalf of affected clients.
The Seriousness of the Allegations Against Larry Labine
Table of Contents
The allegations against Larry Labine are severe and have significant implications for investors. According to the case information, Labine is accused of making fraudulent misrepresentations and omissions of material facts to customers in connection with the sale of senior debentures issued by Domin-8, a company developing software for real estate management companies. Despite having knowledge of Domin-8’s poor financial condition and his personal incentives to sell the debentures, Labine failed to disclose this crucial information to investors.
Furthermore, Labine is alleged to have made unsuitable recommendations for non-traded REITs and other alternative investments to elderly and inexperienced investors. These actions demonstrate a clear breach of fiduciary duty and a violation of the trust placed in him by his clients.
Understanding the FINRA Rules Violated by Larry Labine
Larry Labine’s conduct violates various FINRA rules, the Securities Act, and the Exchange Act. FINRA Rule 2111 requires brokers to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer based on the customer’s investment profile. By recommending unsuitable investments to elderly and inexperienced investors, Labine breached this rule.
Additionally, FINRA Rule 2020 prohibits brokers from effecting any transaction in or inducing the purchase or sale of any security by means of any manipulative, deceptive, or other fraudulent device or contrivance. Labine’s misrepresentations and omissions regarding Domin-8’s financial condition and personal incentives constitute a clear violation of this rule.
The Impact on Investors
The consequences of Larry Labine’s misconduct are far-reaching for investors. Those who trusted Labine with their investments have suffered significant financial losses due to his unsuitable recommendations and fraudulent behavior. These losses can have a devastating impact on investors’ financial security, retirement plans, and overall well-being.
Moreover, Labine’s actions have eroded the trust that investors place in financial advisors and the securities industry as a whole. It is crucial for investors to be aware of the red flags associated with financial advisor malpractice and to take action when their trust has been violated.
Red Flags and Recovering Losses Through FINRA Arbitration
Investors should be vigilant in identifying red flags that may indicate financial advisor malpractice. These red flags include:
- Unsuitable investment recommendations
- Misrepresentation or omission of material facts
- Excessive trading or churning of accounts
- Unauthorized transactions
- Failure to disclose conflicts of interest
If investors suspect that they have been victims of financial advisor misconduct, they can seek recovery of their losses through FINRA arbitration. Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, is a national investment fraud law firm that specializes in representing investors in FINRA arbitration claims.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses. The firm operates on a contingency fee basis, meaning they charge no fees unless they successfully recover money for their clients.
Investors who have suffered losses due to Larry Labine’s misconduct are encouraged to contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-885-7162 .
In conclusion, the allegations against Larry (Lawrence) Labine are serious and have significant consequences for investors. Those who have been affected by Labine’s misconduct should not hesitate to seek legal guidance from experienced investment fraud attorneys like those at Haselkorn & Thibaut. By holding financial advisors accountable for their actions, investors can protect their rights and recover the losses they have suffered.
