Charles Schwab & Co., Inc. and one of its former financial advisors, Jason Young, are facing serious allegations of misconduct related to options trading. The customer dispute, filed on March 6, 2024, and currently pending resolution, claims that Young and Charles Schwab engaged in a breach of fiduciary duty, negligence/gross negligence, negligent misrepresentation, intentional misrepresentations/omissions, breach of contract, and violations of the North Carolina and Kansas Securities Acts.
The alleged misconduct occurred between February 2017 and September 2023, raising concerns about the advisor’s and the firm’s practices during this period. As an investor, it is crucial to stay informed about such allegations, as they can potentially impact your investments and trust in the financial industry. According to a recent study by Bloomberg, investment fraud and bad advice from financial advisors are more common than many investors realize, with seniors being particularly vulnerable to these practices.
Haselkorn & Thibaut, a national investment fraud law firm, is currently investigating Jason Young and Charles Schwab & Co., Inc. in relation to these allegations. If you have invested with Young or Charles Schwab and have concerns about your investments, Haselkorn & Thibaut offers free consultations to help you understand your rights and options.
Understanding the Allegations and FINRA Rules
Table of Contents
The allegations against Jason Young and Charles Schwab & Co., Inc. are severe and encompass a range of misconduct, including:
- Breach of fiduciary duty
- Negligence and gross negligence
- Misrepresentation (both negligent and intentional)
- Breach of contract
- Violations of state securities laws
These allegations suggest that the advisor and the firm may have failed to act in the best interests of their clients, provide accurate information, and comply with legal and regulatory requirements.
FINRA Rules and Investor Protection
The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that oversees the conduct of financial advisors and firms. FINRA rules are designed to protect investors and maintain the integrity of the financial markets. Some key FINRA rules relevant to this case include:
- FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade
- FINRA Rule 2020: Use of Manipulative, Deceptive, or Other Fraudulent Devices
- FINRA Rule 2111: Suitability
Violations of these rules can result in disciplinary action against the advisor and the firm, and may entitle investors to recover losses through FINRA arbitration. Investors can check the background and disciplinary history of their financial advisors using FINRA’s BrokerCheck tool.
The Importance of Investor Awareness
Allegations of misconduct by financial advisors and firms serve as a reminder of the importance of investor awareness and due diligence. As an investor, it is essential to:
- Thoroughly research advisors and firms before investing
- Monitor your investments regularly
- Question any inconsistencies or suspicious activity
- Seek help from qualified professionals if you suspect misconduct
By staying informed and proactive, investors can better protect their investments and hold advisors and firms accountable for their actions.
Red Flags for Financial Advisor Malpractice
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Unauthorized or excessive trading
- Lack of diversification in your portfolio
- Inconsistent or missing account statements
- Pressure to make quick investment decisions
- Promises of guaranteed returns or “too good to be true” opportunities
If you notice any of these red flags or have concerns about your investments with Jason Young or Charles Schwab & Co., Inc., it is crucial to seek help from a qualified investment fraud law firm.
Recovering Investment Losses Through FINRA Arbitration
Investors who have suffered losses due to financial advisor misconduct may be able to recover their losses through FINRA arbitration. Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, has over 50 years of combined experience in representing investors in FINRA arbitration cases.
With a 98% success rate and a “No Recovery, No Fee” policy, Haselkorn & Thibaut has a proven track record of helping investors recover their losses. If you believe you have been a victim of investment fraud or misconduct, contact Haselkorn & Thibaut for a free consultation at 1-888-885-7162 .
As the investigation into Jason Young and Charles Schwab & Co., Inc. unfolds, it is essential for investors to remain vigilant and seek professional help if they suspect any wrongdoing. By working with experienced investment fraud attorneys, investors can protect their rights and work towards recovering any losses stemming from financial advisor misconduct.
