In a recent development, Matthew Stucke, a financial professional associated with Cetera Advisor Networks LLC (CRD 13572), has been named in a customer dispute filed on February 2, 2024. The Statement of Claim alleges that Stucke was negligent in handling client accounts and used his discretionary authority to engage in high volumes of risky activity involving equity listed securities (common & preferred stock).
The allegations against Matthew Stucke are currently pending resolution, and the damage amount requested by the claimant(s) has not been disclosed. Stucke, who has been registered with Cetera Advisor Networks LLC in the state of Georgia since October 26, 2022, is still listed as an active broker and investment advisor, according to his FINRA BrokerCheck report.
Haselkorn & Thibaut, P.A., a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Matthew Stucke and Cetera Advisor Networks LLC in connection with these allegations. The firm encourages any clients who have suffered losses due to Stucke’s alleged misconduct to contact them for a free consultation by calling 1-888-885-7162 .
Understanding the Allegations and FINRA Rules
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The allegations against Matthew Stucke suggest that he mishandled client accounts and engaged in excessive and risky trading activities. Under FINRA rules, financial professionals have a duty to act in the best interests of their clients and to make suitable investment recommendations based on the client’s financial situation, risk tolerance, and investment objectives.
Discretionary Authority and Suitability
FINRA Rule 3260 governs discretionary accounts and requires financial professionals to obtain written authorization from clients before exercising discretionary authority over their accounts. Additionally, FINRA Rule 2111 requires financial professionals to have a reasonable basis to believe that their investment recommendations are suitable for the client, taking into account factors such as the client’s financial situation, risk tolerance, and investment objectives.
Excessive Trading and Churning
Engaging in high volumes of risky activity, as alleged in the complaint against Matthew Stucke, may constitute excessive trading or churning. Churning occurs when a financial professional engages in excessive trading in a client’s account to generate commissions, disregarding the client’s best interests. This practice is prohibited under FINRA rules and can result in significant losses for investors. Investopedia defines churning as a type of investment fraud that involves excessive trading by a broker in a client’s account, often to generate commissions at the expense of the client’s best interests.
Why It Matters for Investors
The allegations against Matthew Stucke serve as a reminder of the importance of working with trustworthy and ethical financial professionals. When a financial advisor engages in misconduct, such as negligence or excessive trading, it can have severe consequences for investors, leading to substantial financial losses.
Protecting Your Investments
Investors should regularly review their account statements and question any suspicious or unauthorized activity. If you suspect that your financial advisor has engaged in misconduct or made unsuitable investment recommendations, it is crucial to take action promptly to protect your rights and recover any losses.
Seeking Legal Assistance
Experienced investment fraud attorneys, such as those at Haselkorn & Thibaut, P.A., can help investors navigate the complex process of pursuing claims against financial professionals and their firms. With over 50 years of combined experience and a 98% success rate, the firm has a proven track record of helping investors recover losses through FINRA arbitration and other legal channels.
Red Flags for Financial Advisor Malpractice
Investors should be aware of several warning signs that may indicate financial advisor misconduct:
- Unauthorized or excessive trading in your account
- Lack of diversification or overconcentration in certain securities
- Investments that are inconsistent with your risk tolerance or investment objectives
- Failure to disclose material information about investments or conflicts of interest
- Pressure to make quick investment decisions or to invest in products you don’t understand
Recovering Losses Through FINRA Arbitration
If you have suffered investment losses due to the misconduct of Matthew Stucke or another financial professional, you may be able to recover your losses through FINRA arbitration. This process allows investors to pursue claims against brokers and their firms in a less formal setting than a traditional courtroom.
No Recovery, No Fee
Haselkorn & Thibaut, P.A. operates on a contingency fee basis, meaning they do not charge any upfront fees and only collect a fee if they successfully recover losses for their clients. This “No Recovery, No Fee” policy demonstrates the firm’s commitment to fighting for investors’ rights and holding financial professionals accountable for their actions.
As the investigation into the allegations against Matthew Stucke and Cetera Advisor Networks LLC unfolds, investors who have been affected by this or similar misconduct are encouraged to seek legal guidance. By working with experienced investment fraud attorneys, investors can take steps to protect their rights, recover losses, and hold financial professionals responsible for their actions.
