In a recent development, a client has filed a complaint against Chris Abeyta, a financial advisor at Accelerated Wealth, alleging a violation of privacy and unsuitable sales of fixed annuities. The client, who has over thirty years of experience working with commercial and government entities in electronic records compliance, claims that Abeyta released his personally identifiable information (PII) without authorization, breaching the trust placed in him.
The complaint also extends to those who worked with or for Abeyta at Accelerated Wealth and participated in or knowingly allowed the violation of the client’s trust. The client has provided an email as an official complaint regarding the unauthorized release of his personal information by Abeyta to entities not approved by agreement with or contractually associated with Accelerated Wealth.
Furthermore, the client alleges that in October, Abeyta and Mack Bekeza asked him to review his Allianz accounts to improve his returns. The client claims that agreeing to this change would have resulted in at least one of his accounts being moved to a new account, generating new commissions without direct benefit to him or his wife. The client also alleges that Abeyta failed to disclose insurance sales incentives, upward commission bonuses, and other conflicts of interest involved in the sale of one particular insurance product family over other alternatives.
Unfortunately, cases like this are not uncommon in the financial advisory industry. According to a study by the Securities and Exchange Commission (SEC), the agency received over 26,000 tips, complaints, and referrals related to investment fraud and misconduct in fiscal year 2020 alone.
Understanding the Gramm-Leach-Bliley Act and Reg. Best Interest
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The Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act of 1999, is a federal law that requires financial institutions to protect the privacy and security of their customers’ personal information. This law applies to companies that offer consumers financial products or services, such as loans, financial or investment advice, or insurance. By allegedly releasing the client’s PII without authorization, Abeyta may have violated this law.
Reg. Best Interest, or Regulation Best Interest, is a rule adopted by the Securities and Exchange Commission (SEC) in 2019. This rule requires broker-dealers to act in the best interest of their retail customers when making recommendations about securities transactions or investment strategies. The rule also requires broker-dealers to disclose conflicts of interest, such as sales incentives or commission bonuses, that may influence their recommendations. By allegedly failing to disclose these conflicts, Abeyta may have violated Reg. Best Interest.
The Importance of Disclosure and Transparency for Investors
This case highlights the importance of disclosure and transparency in the financial advisory industry. Investors have the right to know about any potential conflicts of interest that may influence their advisor’s recommendations, such as sales incentives or commission bonuses. By failing to disclose these conflicts, advisors may be putting their own financial interests ahead of their clients’ best interests.
Moreover, the unauthorized release of PII can have serious consequences for investors. Identity theft, financial fraud, and other crimes can result from the misuse of personal information. Investors should be able to trust that their financial advisors will protect their privacy and keep their personal information secure.
Protecting Investors’ Rights and Recovering Losses
Investors who have suffered losses due to financial advisor malpractice or misconduct may be able to recover their losses through FINRA arbitration. FINRA, or the Financial Industry Regulatory Authority, is a self-regulatory organization that oversees the broker-dealer industry. FINRA arbitration is a private, court-like process that allows investors to seek damages from their financial advisors or brokerage firms.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Chris Abeyta (CRD# 5350715) and Accelerated Wealth in relation to this case. With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses due to financial advisor malpractice or misconduct.
Investors who believe they may have been victims of financial advisor malpractice or misconduct are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm operates on a “No Recovery, No Fee” basis, meaning that clients only pay if the firm recovers losses on their behalf. Investors can reach Haselkorn & Thibaut by calling their toll-free number at 1-888-628-5590.
In conclusion, the case against Chris Abeyta and Accelerated Wealth serves as a reminder of the importance of disclosure, transparency, and the protection of investors’ rights in the financial advisory industry. By holding financial advisors accountable for their actions and helping investors recover losses, firms like Haselkorn & Thibaut play a crucial role in promoting integrity and trust in the industry.
