Allegations related to financial malpractice are serious matters that can result in significant financial loss for investors. A recent case involving Edgar Kleydman and Equitable Advisors, LLC, his previous employer, serves as a prime example of the devastating impact of such allegations. The claimant alleges that Kleydman engaged in “selling away”, a practice where a broker sells investments not sold or authorized by their brokerage firm. Furthermore, Kleydman allegedly misrepresented the return on investment and made a guarantee associated with the claimant’s funds. The claimant’s losses are estimated to be around $1,000,000.
Understanding the Allegation and the FINRA Rule
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Financial Industry Regulatory Authority (FINRA) Rule 3270 prohibits brokers from engaging in any business activity outside the scope of their relationship with their employing firm unless they have provided prior written notice to the firm. This rule is designed to protect investors from unscrupulous brokers who may be tempted to engage in risky or fraudulent transactions that are not in the best interest of their clients.
Why This Matters for Investors
Investors trust their financial advisors to act in their best interest. When a broker engages in “selling away”, they’re violating this trust and potentially exposing their clients to risky investments that may not be suitable for their financial situation. This can result in significant financial losses for the investor.
Red Flags and Recovering Losses
Some red flags of financial advisor malpractice include unexplained losses, unauthorized trades, and resistance to provide information about investments. If you believe you’ve been a victim of financial malpractice, you can potentially recover your losses through FINRA Arbitration.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Edgar Kleydman and Equitable Advisors, LLC. With over 50 years of experience and a 98% success rate, they’re well-equipped to help victims of financial malpractice recover their losses. They offer free consultations and operate on a “No Recovery, No Fee” policy. You can reach them at their toll-free consultation number, 1-800-856-3352.
FINRA Arbitration: A Path to Recovery
FINRA Arbitration is a dispute resolution process where a neutral third party, known as an arbitrator, decides the outcome of a dispute. It’s a quicker and less formal alternative to litigation, making it an attractive option for investors seeking to recover their losses.
Remember, allegations of financial malpractice are serious and can have devastating financial consequences. If you believe you’ve been a victim, don’t hesitate to reach out to a reputable law firm like Haselkorn & Thibaut for assistance.
