Jason D’Amelio, a broker associated with The Strategic Financial Alliance, Inc., is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, following allegations of inappropriate investment recommendations.
According to a Bloomberg article, investment fraud and bad advice from financial advisors can have devastating consequences for investors. In 2020, the Securities and Exchange Commission (SEC) reported that it received over 71,000 complaints related to investment fraud, highlighting the prevalence of this issue in the financial industry.
Customer Dispute Alleges Unsuitable Investment Recommendation
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Recent disclosures on D’Amelio‘s FINRA BrokerCheck report reveal that a customer has filed a dispute alleging that an investment made in 2014, under D’Amelio‘s guidance, was inappropriate for the customer’s investment objectives and risk tolerance. The investment in question involves a real estate security.
FINRA Rules Require Suitable Investment Recommendations
FINRA Rule 2111, known as the “Suitability Rule,” mandates that financial advisors must 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 age, financial situation, risk tolerance, and investment objectives.
When a broker fails to adhere to this rule and recommends unsuitable investments, they may be held liable for any resulting losses incurred by the investor.
Importance of Suitability for Investors
Unsuitable investment recommendations can have severe consequences for investors, potentially leading to substantial financial losses. Investors trust their financial advisors to provide guidance that aligns with their goals and risk tolerance, and when this trust is violated, it can have far-reaching impacts on their financial well-being.
Investors who have suffered losses due to unsuitable investment recommendations may be entitled to recover damages through FINRA arbitration.
Red Flags and Recovering Losses
Investors should be aware of red flags that may indicate financial advisor malpractice, such as:
- Investments that do not align with the investor’s stated risk tolerance or objectives
- Excessive trading or churning of the investor’s account
- Lack of diversification in the investment portfolio
If an investor suspects that they have been the victim of financial advisor malpractice, they should consider seeking the guidance of an experienced investment fraud attorney. Haselkorn & Thibaut, 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 through FINRA arbitration.
Haselkorn & Thibaut operates on a contingency fee basis, meaning they do not charge any fees unless they successfully recover funds for their clients. Investors can contact the firm for a free consultation by calling their toll-free number at 1-888-628-5590.
The Path Forward
As the investigation into Jason D’Amelio and The Strategic Financial Alliance, Inc. unfolds, investors who have worked with D’Amelio are encouraged to review their investment portfolios for potential unsuitable recommendations. By staying informed and taking prompt action when necessary, investors can protect their rights and seek the recoveries they deserve.
