In a recent development that has sent shockwaves through the investment community, a serious allegation has been leveled against Lemuel Kornegay, a financial advisor associated with Money Concepts Capital Corp. The gravity of this case cannot be overstated, as it has the potential to significantly impact investors who have entrusted their hard-earned money to Kornegay and Money Concepts Capital Corp.
According to a recent study by the Forbes Finance Council, investment fraud and bad advice from financial advisors are alarmingly common, with an estimated $50 billion lost annually due to these practices. This case serves as a stark reminder of the importance of thoroughly vetting financial advisors and closely monitoring investments.
The Allegation and Its Impact on Investors
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According to the disclosure on FINRA’s BrokerCheck, a customer has alleged that Lemuel Kornegay charged more than the agreed-upon fees for services rendered. This accusation strikes at the heart of the trust that investors place in their financial advisors and the companies they represent. If proven true, such actions would constitute a severe breach of fiduciary duty and could result in substantial financial losses for affected investors.
Money Concepts Capital Corp has stated that upon reviewing the documents related to the account, they found the customer had authorized all fees by way of signature. However, the customer also claimed that Kornegay was, at times, unresponsive to her communications. The firm discovered that the customer insisted on texting the advisor, a method of communication not authorized by the company, leading to delays in response until Kornegay could access his authorized email.
While Money Concepts Capital Corp did not find any improprieties relating to the advisory and financial planning services or fees rendered to the client, the mere existence of such allegations can erode investor confidence and trust in the financial services industry.
Understanding the FINRA Rule Violation
The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that oversees the conduct of financial advisors and brokerage firms. FINRA rules are designed to protect investors and maintain the integrity of the financial markets. In this case, the alleged overcharging of fees by Lemuel Kornegay would violate FINRA Rule 2010, which requires members to observe high standards of commercial honor and just and equitable principles of trade.
Additionally, FINRA Rule 2111 requires financial advisors to have a reasonable basis for believing that their recommendations are suitable for their clients, taking into account factors such as the client’s financial situation, investment objectives, and risk tolerance. Overcharging fees would be a clear violation of this rule, as it would not be in the client’s best interests.
The Importance for Investors
This case underscores the critical importance of transparency and trust in the financial advisor-client relationship. Investors rely on their advisors to provide sound guidance and act in their best interests, and any breach of this trust can have severe consequences. It is crucial for investors to remain vigilant and closely monitor their accounts to ensure that all fees and charges align with their agreed-upon arrangements.
Investors who suspect that they have been overcharged or have fallen victim to other forms of financial advisor misconduct should not hesitate to seek legal counsel. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Lemuel Kornegay and Money Concepts Capital Corp. With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses through FINRA arbitration.
Red Flags and Recovering Losses
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Unexplained or excessive fees
- Unauthorized trades or account activity
- Lack of transparency or communication from the advisor
- Inconsistencies between verbal promises and written agreements
If you suspect that you have been a victim of financial advisor misconduct, it is essential to act quickly to protect your rights and recover your losses. Haselkorn & Thibaut offers free consultations to help investors assess their cases and determine the best course of action. With their “No Recovery, No Fee” policy, investors can pursue justice without the added financial burden of upfront legal costs.
To schedule a consultation with Haselkorn & Thibaut, call their toll-free number at 1-888-885-7162 or visit their website to learn more about their services and track record of success.
As the investigation into Lemuel Kornegay and Money Concepts Capital Corp unfolds, it serves as a stark reminder of the need for increased vigilance and accountability in the financial services industry. By working together to expose misconduct and hold wrongdoers accountable, we can foster a more transparent and trustworthy environment for investors.
