In a recent development, a former Ameriprise advisor, Samuel Haddix, has been accused of fraudulent activities and harassment by a plaintiff who sought his assistance in growing a small business. The allegations, filed on February 8, 2024, are currently pending resolution and have brought to light the potential risks investors face when engaging with financial advisors. According to a study by the U.S. Securities and Exchange Commission, investment fraud and bad advice from financial advisors cost investors billions of dollars each year.
Allegations Against Samuel Haddix
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According to the complaint, the plaintiff alleges that Samuel Haddix, a former advisor at Ameriprise Financial Services, Inc. (CRD 6363), engaged in fraudulent activities while assisting the plaintiff in growing his small business. The plaintiff claims that Haddix opened two bank accounts without proper authorization and drafted a “Purchase Business Agreement” to solicit investors to invest in the plaintiff’s business, purportedly to pay off tax debt.
Harassment and Threats
In addition to the alleged fraudulent activities, the plaintiff asserts that Samuel Haddix harassed and threatened him to relinquish rights and control in his business. This accusation highlights the potential for abuse of power by financial advisors and the importance of protecting investors’ rights.
FINRA Rules and Investor Protection
The Financial Industry Regulatory Authority (FINRA) has established rules to protect investors from fraudulent activities and misconduct by financial advisors. FINRA Rule 2010 requires that advisors observe high standards of commercial honor and just and equitable principles of trade. Additionally, FINRA Rule 3240 prohibits advisors from engaging in outside business activities without prior written notice to their employer.
Importance of Due Diligence
This case underscores the significance of conducting thorough due diligence when selecting a financial advisor. Investors should research an advisor’s background, including their employment history, disciplinary actions, and customer complaints, which can be found on FINRA’s BrokerCheck website. It is crucial to verify an advisor’s credentials and ensure they are properly licensed and registered with FINRA or the SEC.
Red Flags for Financial Advisor Misconduct
Investors should be aware of red flags that may indicate potential misconduct by a financial advisor. These include:
- Unauthorized account activity
- Pressure to make quick investment decisions
- Promises of guaranteed returns or “risk-free” investments
- Lack of transparency regarding fees and commissions
- Failure to provide regular account statements or portfolio updates
Recovering Losses Through FINRA Arbitration
Investors who have suffered losses due to financial advisor misconduct may be able to recover their losses through FINRA arbitration. FINRA operates the largest securities dispute resolution forum in the United States, offering a fair and efficient process for resolving disputes between investors and financial professionals.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Samuel Haddix and Ameriprise Financial Services, Inc. The firm has over 50 years of combined experience and boasts an impressive 98% success rate in helping investors recover their losses. They offer free consultations and operate on a “No Recovery, No Fee” basis.
Investors who believe they may have been victims of misconduct by Samuel Haddix or any other financial advisor are encouraged to contact Haselkorn & Thibaut at their toll-free number, 1-888-885-7162 , for a free consultation.
As the case against Samuel Haddix unfolds, it serves as a reminder of the importance of remaining vigilant and informed when working with financial advisors. By understanding their rights, recognizing potential red flags, and knowing where to turn for help, investors can better protect themselves and their investments in the complex world of finance.
