Kevin Paasch, a broker and investment advisor with MML Investors Services, LLC, is under investigation for alleged misconduct in handling a client’s joint account in 2021. The client claims that Paasch failed to follow instructions regarding the sale and transfer of assets, and later transferred money from the joint account to an account held by only one of the joint account holders, contrary to the given instructions. As a result, the client suffered financial harm.
The allegations against Kevin Paasch are serious, as they involve a breach of trust and fiduciary duty. Financial advisors are obligated to follow their clients’ instructions and act in their best interests. Failing to do so can lead to significant losses for investors and erode the trust that is essential in the client-advisor relationship. According to a Bloomberg article, investment fraud and misconduct by financial advisors can have devastating consequences for investors, highlighting the importance of due diligence and seeking legal recourse when necessary.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Kevin Paasch and MML Investors Services, LLC. With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. They offer free consultations and operate on a “no recovery, no fee” basis. Investors can reach them toll-free at 1-888-885-7162 .
Understanding the Allegations and FINRA Rules
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The allegations against Kevin Paasch center around the mishandling of a client’s joint account. According to the client, Paasch failed to follow their instructions regarding the sale and transfer of assets. Additionally, he allegedly transferred funds from the joint account to an account held by only one of the joint account holders, going against the client’s explicit instructions.
FINRA, the Financial Industry Regulatory Authority, has specific rules in place to protect investors from such misconduct. FINRA Rule 2150 states that no member or associated person shall make improper use of a customer’s securities or funds. This includes failing to follow a client’s instructions or transferring funds without proper authorization.
Furthermore, FINRA Rule 2010 requires that members and associated persons observe high standards of commercial honor and just and equitable principles of trade. Disregarding a client’s instructions and causing financial harm is a clear violation of this rule. Investors can check an advisor’s background and disciplinary history on FINRA’s BrokerCheck website.
The Impact on Investors
The alleged misconduct by Kevin Paasch can have severe consequences for investors. When a financial advisor fails to follow instructions or mishandles funds, it can lead to significant financial losses. Investors trust their advisors to manage their assets responsibly and in line with their goals and risk tolerance.
Mishandling of joint accounts is particularly concerning, as it can lead to disputes between account holders and strain personal relationships. Investors who have suffered losses due to advisor misconduct may face emotional distress and financial instability.
It is crucial for investors to be aware of their rights and the options available to them when faced with advisor misconduct. FINRA arbitration provides a platform for investors to seek recovery of their losses and hold advisors accountable for their actions.
Red Flags and Recovering Losses
Investors should be vigilant for red flags that may indicate financial advisor malpractice. Some warning signs include:
- Unauthorized transactions or transfers
- Failure to follow client instructions
- Lack of communication or transparency
- Inconsistencies in account statements or performance reports
If investors suspect misconduct, they should promptly gather relevant documentation and seek legal guidance. Haselkorn & Thibaut offers free consultations to help investors assess their cases and determine the best course of action.
FINRA arbitration is an efficient and effective way for investors to recover losses caused by advisor misconduct. Arbitration proceedings are typically faster and less formal than court litigation, and the decisions are binding. Haselkorn & Thibaut‘s experienced attorneys have a 98% success rate in FINRA arbitration cases, ensuring that investors have the best possible representation.
Investors who have suffered losses due to the alleged misconduct of Kevin Paasch or any other financial advisor should not hesitate to seek help. Contact Haselkorn & Thibaut at 1-888-885-7162 for a free consultation and take the first step towards recovering your losses.
