Investors place a great amount of trust in their financial advisors, believing that these professionals will act in their best interests. However, allegations of financial advisor malpractice can shatter this trust, leaving investors with significant losses. Such is the case with a recent allegation against April Schoen of PARK AVENUE SECURITIES LLC. The seriousness of this allegation cannot be overstated, and it is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm.
The Seriousness of the Allegation and Case Information
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The allegation against April Schoen was filed on September 21, 2023. The client alleges that the losses he incurred, amounting to $6,894, were due to investments made in his account that did not align with his time horizon. This case is currently pending and has been assigned the case number 6039563.
PARK AVENUE SECURITIES LLC, where Schoen has been employed since May 28, 2014, is also implicated in this case. The company’s CRD number is 46173. The dispute pertains to an advisory account, and the advisor’s role is listed as “Other: Advisory account”.
Explanation in Simple Terms and the FINRA Rule
In simpler terms, the client is alleging that Schoen and PARK AVENUE SECURITIES LLC failed to consider his investment time horizon when making decisions on his behalf. An investment time horizon is the estimated number of months or years an investor plans to keep an investment before selling it. If an advisor does not align the investments with the client’s time horizon, the client may be exposed to unnecessary risks that could result in financial losses.
This allegation, if proven true, would be a violation of the Financial Industry Regulatory Authority (FINRA) Rule 2111, which requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer. This includes considering the customer’s investment profile, which encompasses the customer’s investment time horizon.
Why it Matters for Investors
This allegation is a serious concern for all investors. If financial advisors do not take into account their clients’ investment profiles, they may recommend unsuitable investments, leading to potential financial losses. This case serves as a stark reminder of the importance of working with a trustworthy and competent financial advisor.
Furthermore, it underscores the vital role of regulatory bodies like FINRA in protecting investors. FINRA rules are in place to ensure that financial advisors act in the best interests of their clients. Violations of these rules can result in severe penalties, including fines and suspension.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
Investors should be aware of certain red flags that could indicate financial advisor malpractice. These include frequent and unnecessary trading, recommending unsuitable investments, and failure to disclose important information. If you notice any of these signs, it is important to take action immediately.
Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, is dedicated to helping investors recover losses due to financial advisor malpractice. With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has successfully recovered financial losses for countless investors. They operate on a “No Recovery, No Fee” policy and offer free consultations to clients.
One of the ways investors can recover losses is through FINRA Arbitration. This is a quicker and less formal process than litigation and can be an effective way to resolve disputes. Haselkorn & Thibaut is well-versed in FINRA Arbitration and can guide investors through this process. For more information, investors can reach out to Haselkorn & Thibaut at their toll-free consultation number, 1-800-856-3352.
In conclusion, the allegation against April Schoen and PARK AVENUE SECURITIES LLC is a serious matter that underscores the importance of investor protection. Investors who believe they have been the victim of financial advisor malpractice should not hesitate to seek legal help to recover their losses.
