In a recent development, Cetera Investment Services LLC and its broker, Joshua Green, have come under scrutiny following allegations made by a client. The client, who remains anonymous, has claimed that Joshua Green invested her funds from a Franklin fund into another fund without her permission. The incident, which occurred on January 29, 2024, has raised concerns about the broker’s conduct and the firm’s oversight.
According to the client’s complaint, Joshua Green, who has been registered with Cetera Investment Services LLC (CRD 15340) in Florida since September 7, 2017, allegedly transferred her investments from a Franklin fund to a structured product without her consent. The client’s allegations suggest a breach of trust and a potential violation of FINRA rules governing broker conduct.
Cetera Investment Services LLC and Joshua Green have denied the allegations, as indicated in the disclosure resolution. However, the incident has prompted further investigation into the matter. Joshua Green’s FINRA BrokerCheck report (CRD #4970616) has been updated to reflect the customer dispute, ensuring transparency for investors.
Understanding the allegations and FINRA rules
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The client’s complaint revolves around the unauthorized transfer of her investments from a Franklin fund to a structured product. Structured products are complex financial instruments that combine various assets, such as bonds and derivatives, to achieve specific investment objectives. These products often carry higher risks and may not be suitable for all investors.
FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as the customer’s age, financial situation, investment objectives, and risk tolerance.
If the allegations against Joshua Green are proven true, it could constitute a violation of FINRA’s Suitability Rule. Unauthorized transactions and investing client funds in products that do not align with their investment goals and risk tolerance are serious offenses that can result in disciplinary action against the broker and the firm.
Investment fraud and bad advice from financial advisors are unfortunately common occurrences. According to a Bloomberg article, investment fraud has been on the rise during the pandemic, with scammers exploiting the increased reliance on digital platforms and the economic uncertainty faced by many individuals.
The importance for investors
This case serves as a reminder of the importance of investor vigilance and the need for transparent communication between financial advisors and their clients. Investors should always be informed about the risks and characteristics of the products in which their money is being invested.
Unauthorized transactions, such as the one alleged in this case, can have severe consequences for investors. They may find themselves exposed to unexpected risks, potentially leading to significant financial losses. Investors should regularly review their account statements and question any transactions that they do not recognize or did not authorize.
Moreover, this incident highlights the crucial role of regulatory bodies like FINRA in protecting investor interests. By requiring brokers and firms to adhere to strict rules and regulations, FINRA aims to maintain the integrity of the financial markets and prevent misconduct that can harm investors.
Red flags and recovering losses
Investors should be aware of red flags that may indicate financial advisor malpractice. These include:
- Unauthorized transactions
- Lack of communication or transparency
- Pressure to make quick investment decisions
- Promises of guaranteed returns or low-risk investments with high yields
If investors suspect that they have been victims of financial advisor misconduct, they have options to recover their losses. One such avenue is FINRA arbitration, a process designed to resolve disputes between investors and brokers or firms.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Joshua Green and Cetera Investment Services LLC. With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses.
Investors who have suffered losses due to the alleged misconduct of Joshua Green or Cetera Investment Services LLC are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm operates on a “No Recovery, No Fee” basis, ensuring that clients can seek justice without upfront costs. To discuss your case, call their toll-free number at 1-888-885-7162 .
As the investigation into Joshua Green and Cetera Investment Services LLC unfolds, investors should remain vigilant and proactive in protecting their financial interests. By staying informed, working with reputable professionals, and taking prompt action when misconduct is suspected, investors can safeguard their hard-earned money and hold wrongdoers accountable.
