In a recent development that has sent shockwaves through the investment community, a serious allegation has been leveled against financial advisor Andrew Keller and his firm, Purshe Kaplan Sterling Investments. The case, which is currently pending, revolves around a customer dispute that spans the period from 2021 to 2023. The customer alleges that Keller and his firm engaged in negligence, provided unsuitable investment advice, and breached their fiduciary duty.
This allegation carries significant weight, as it directly impacts the trust and confidence that investors place in their financial advisors. When an advisor is accused of misconduct, it raises questions about their ability to act in the best interests of their clients and provide sound financial guidance. Investors who have entrusted their hard-earned money to Keller and Purshe Kaplan Sterling Investments are now left wondering about the security of their investments and the integrity of the advice they have received.
Unfortunately, investment fraud and bad advice from financial advisors are not uncommon. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with the elderly being particularly vulnerable to these scams.
Understanding the allegation
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At the core of this case is the concept of fiduciary duty. Financial advisors are bound by law to act in the best interests of their clients and to provide advice that is suitable for their individual financial situations. When an advisor breaches this duty, they can be held liable for any resulting losses or damages incurred by their clients.
The allegation against Andrew Keller and Purshe Kaplan Sterling Investments specifically cites negligence and unsuitability. Negligence occurs when an advisor fails to exercise the level of care and diligence that a reasonable professional would under similar circumstances. Unsuitability, on the other hand, refers to the practice of recommending investments that are not appropriate for a client’s risk tolerance, financial goals, or overall financial situation.
FINRA Rule 2111: suitability
The Financial Industry Regulatory Authority (FINRA) has established specific rules to protect investors from unsuitable investment recommendations. FINRA Rule 2111, known as the “Suitability Rule,” requires financial advisors 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.
The investment profile includes factors such as the customer’s age, financial situation, investment objectives, liquidity needs, risk tolerance, and investment experience. By allegedly providing unsuitable advice, Andrew Keller and Purshe Kaplan Sterling Investments may have violated this crucial FINRA rule, putting their clients’ financial well-being at risk.
The impact on investors
When a financial advisor breaches their fiduciary duty or provides unsuitable advice, the consequences for investors can be severe. Investors may suffer significant financial losses, see their retirement plans derailed, or face unexpected tax liabilities. The emotional toll of realizing that one’s trusted advisor has acted against their best interests can be equally devastating.
This case serves as a stark reminder of the importance of thoroughly vetting financial advisors before entrusting them with one’s financial future. Investors should research an advisor’s background, regulatory history, and professional qualifications. They should also be vigilant in monitoring their investments and questioning any recommendations that seem inconsistent with their goals or risk tolerance.
Investors can check an advisor’s background and disciplinary history by accessing their FINRA BrokerCheck report or visiting the SEC’s Investment Adviser Public Disclosure website.
Red flags and recovering losses
Investors who suspect that they have been the victims of financial advisor malpractice should be aware of certain red flags. These may include unauthorized trades, excessive trading activity, a lack of transparency regarding fees and commissions, or a sudden change in investment strategy without a clear explanation.
If an investor believes they have suffered losses due to the misconduct of their financial advisor, they may have options for recovering those losses. One such avenue is FINRA arbitration, a process designed to resolve disputes between investors and financial professionals. FINRA arbitration can be a more efficient and cost-effective alternative to traditional litigation.
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 Andrew Keller and Purshe Kaplan Sterling Investments. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses stemming from financial advisor misconduct.
Investors who have suffered losses due to the alleged actions of Andrew Keller and Purshe Kaplan Sterling Investments are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm operates on a contingency basis, meaning there are no fees unless a recovery is obtained. Investors can reach Haselkorn & Thibaut toll-free at 1-888-885-7162 .
As the case against Andrew Keller and Purshe Kaplan Sterling Investments unfolds, it serves as a sobering reminder of the trust that investors place in their financial advisors and the devastating consequences when that trust is violated. By staying informed, vigilant, and knowing their rights, investors can protect themselves and their financial futures from the damaging effects of financial advisor misconduct.
