Jarrett Imamura, a broker and investment advisor associated with LPL Financial LLC, is currently facing a pending customer dispute, as reported on his FINRA BrokerCheck record (CRD #3036591). The national investment fraud law firm, Haselkorn & Thibaut, is investigating the advisor and company, offering free consultations to affected clients.
Allegations Against Jarrett Imamura and LPL Financial LLC
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According to the disclosure dated February 8, 2024, a customer has alleged that an investment made in 2014, involving a real estate security, was unsuitable for their investment objectives and risk tolerance. The customer dispute is currently pending resolution.
In response to the allegations, Jarrett Imamura has denied any wrongdoing, stating, “I deny all allegations of wrongdoing, and the claim is without merit. All recommendations and investment strategies made for the customer were suitable and consistent with the customer’s investment objectives and risk tolerance. The customer fully understood all risks involved in investing in all products after speaking with me and reviewing the documentation.”
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, the U.S. Securities and Exchange Commission (SEC) estimates that investment fraud costs Americans approximately $40 billion per year. It is crucial for investors to be aware of the risks and to work with reputable advisors who prioritize their clients’ best interests.
Understanding Suitability and FINRA Rule 2111
FINRA Rule 2111, known as the “Suitability Rule,” requires brokers and investment advisors to have a reasonable basis for believing that a recommended investment or investment strategy is suitable for their client. This assessment must take into account the customer’s investment profile, including factors such as:
- Age
- Financial situation and needs
- Investment objectives
- Risk tolerance
- Investment experience
- Liquidity needs
Failure to comply with this rule can result in disciplinary action by FINRA and potential legal action by affected investors. Investment fraud attorneys can help investors navigate the complexities of FINRA arbitration and seek recovery of their losses.
The Importance of Suitability for Investors
Suitability is a critical aspect of the client-advisor relationship. When an investment or strategy is unsuitable for a client, it can expose them to excessive risk, leading to substantial financial losses. Investors rely on the expertise and guidance of their financial advisors to make informed decisions that align with their goals and risk tolerance.
If an advisor recommends an unsuitable investment or fails to properly assess a client’s investment profile, it can be considered a breach of their fiduciary duty. This breach of trust can have severe consequences for investors, both financially and emotionally.
Red Flags and Recovering Losses Through FINRA Arbitration
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Investments that consistently underperform benchmarks
- Lack of diversification in the portfolio
- Excessive trading or churning of accounts
- Unauthorized transactions
- Failure to disclose material information about investments
If an investor suspects they have fallen victim to unsuitable investment advice, they may be able to recover their losses through FINRA arbitration. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, has over 50 years of combined experience and a 98% success rate in helping investors recover losses.
The firm operates on a “No Recovery, No Fee” basis, meaning clients only pay if a recovery is successfully made on their behalf. Investors can contact Haselkorn & Thibaut for a free consultation by calling their toll-free number, 1-888-885-7162 .
As the Jarrett Imamura and LPL Financial LLC case unfolds, it serves as a reminder of the importance of suitability in investment recommendations and the potential consequences of its violation. Investors who believe they have been affected by unsuitable advice should not hesitate to seek legal guidance to protect their rights and recover any losses.
