Paul Golden, a registered representative with Equitable Distributors, LLC, is facing a serious customer dispute allegation that has the potential to impact investors. According to the disclosure, a client has alleged that both their financial professional, who is associated with an unaffiliated retail broker-dealer, and Mr. Golden, a wholesaler with Equitable Distributors, misrepresented the features and benefits of an Equitable variable annuity. Although the client does not allege that Mr. Golden participated in any other meetings or discussions between the client and their financial professional, and acknowledges that Mr. Golden, as a wholesaler, does not make recommendations to retail customers, the seriousness of the allegation cannot be overlooked.
The case, which is currently pending resolution, raises concerns about the transparency and accuracy of information provided to investors when considering complex financial products like variable annuities. As a wholesaler, Mr. Golden‘s role is to educate and support financial professionals in understanding and presenting Equitable‘s products. However, if the allegation is substantiated, it could suggest a breakdown in the communication process, potentially leading to investors making decisions based on inaccurate or incomplete information.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Mr. Golden and Equitable Distributors. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut is dedicated to helping investors recover losses resulting from financial advisor malpractice. The firm offers free consultations to affected clients and operates on a “No Recovery, No Fee” basis.
Understanding the Allegation and FINRA Rule
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In simple terms, the client alleges that Mr. Golden and their financial professional misrepresented the features and benefits of an Equitable variable annuity. Variable annuities are complex investment products that combine features of insurance and securities, offering investors the potential for growth based on the performance of underlying investment options, along with certain guarantees and tax benefits.
FINRA Rule 2020 prohibits member firms and their associated persons from making material misrepresentations or omitting material facts in connection with the purchase or sale of securities. This rule is designed to protect investors from being misled or making investment decisions based on inaccurate information. If the allegation against Mr. Golden is proven, it could constitute a violation of this rule.
Investors can access more information about Mr. Golden‘s background and disclosures through his FINRA BrokerCheck profile, which includes his CRD number: 2560335.
According to a recent study by the Securities and Exchange Commission, investment fraud and bad advice from financial advisors cost investors billions of dollars each year. The study found that the most common types of investment fraud include Ponzi schemes, misrepresentation of investment risks and returns, and unauthorized trading in client accounts.
The Importance for Investors
This case underscores the importance of transparency and accurate representation when it comes to complex financial products like variable annuities. Investors rely on the information provided by financial professionals and wholesalers to make informed decisions about their investments. Misrepresentations or omissions can lead to investors purchasing products that may not align with their financial goals, risk tolerance, or understanding.
Furthermore, this allegation highlights the need for investors to thoroughly research and understand the products they are considering, as well as the professionals they are working with. While wholesalers like Mr. Golden may not directly recommend products to retail customers, their role in educating and supporting financial professionals can indirectly impact the information and guidance investors receive.
Recognizing Red Flags and Seeking Help
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Misrepresentation or omission of material information about a product or investment
- Lack of transparency regarding fees, risks, or potential conflicts of interest
- Recommendations that seem inconsistent with the investor’s goals, risk tolerance, or understanding
- Pressure to make quick decisions or invest in complex products without adequate explanation
If investors suspect they have been the victim of financial advisor malpractice, it is crucial to seek help from experienced professionals. Haselkorn & Thibaut offers free consultations to help investors understand their rights and options for recovering losses. The firm’s attorneys have a deep understanding of FINRA arbitration, a process through which investors can seek to hold financial advisors and their firms accountable for misconduct and recover damages.
Investors who have concerns about their investments with Paul Golden or Equitable Distributors are encouraged to contact Haselkorn & Thibaut at 1-888-885-7162 for a free consultation. With their extensive experience and a 98% success rate, the firm is well-positioned to help investors navigate the complex legal and financial landscape and work towards recovering any losses resulting from misconduct.
