Austin Roncancio, a registered investment advisor with CRD number 6745943, is currently facing allegations of negligence and breach of fiduciary duty. According to recent disclosures, clients have accused Roncancio of investing their retirement funds speculatively, putting their financial future at risk. The case, which was filed on January 3, 2024, is still pending resolution.
The allegations against Roncancio are serious, as they suggest a violation of the trust placed in him by his clients. As an investment advisor, Roncancio had a legal and ethical obligation to act in the best interests of his clients and to make prudent investment decisions on their behalf. By allegedly investing retirement funds speculatively, he may have breached this duty and exposed his clients to unnecessary risk. Fiduciary duty is a critical responsibility for financial advisors, and any breach of this duty can have severe consequences for both the advisor and their clients.
Understanding the Allegations and FINRA Rules
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In simple terms, the clients allege that Austin Roncancio was negligent in his duties as an investment advisor and breached his fiduciary duty by making speculative investments with their retirement funds. Negligence occurs when an advisor fails to exercise reasonable care, skill, and diligence in managing client assets. A breach of fiduciary duty happens when an advisor puts their own interests ahead of their clients’ or fails to act in their clients’ best interests.
FINRA Rule 2111, known as the “Suitability Rule,” requires that investment advisors have a reasonable basis to believe that their investment recommendations are suitable for their clients based on factors such as the client’s financial situation, risk tolerance, and investment objectives. By allegedly investing retirement funds speculatively, Roncancio may have violated this rule and exposed his clients to inappropriate levels of risk.
The Importance for Investors
This case highlights the critical importance of working with a trustworthy and competent investment advisor. Retirement funds are often the product of years of hard work and saving, and they play a crucial role in ensuring financial security during one’s golden years. When an advisor mishandles these funds or makes inappropriate investment decisions, it can have devastating consequences for the investor’s future.
Investors must be vigilant in monitoring their investments and the actions of their advisors. Regular reviews of account statements, open communication with advisors, and a basic understanding of investment principles can help investors identify potential issues early on and protect their financial interests. Unfortunately, investment fraud and bad advice from financial advisors are all too common, with the FBI estimating that Americans lose billions of dollars each year to investment fraud schemes.
Red Flags and Recovering Losses
There are several red flags that investors should watch for when working with a financial advisor, including:
- Lack of transparency or reluctance to explain investment decisions
- Inconsistency between the investor’s risk tolerance and the actual investments made
- Unusual or unexplained changes in account balances or performance
- Pressure to make quick investment decisions or to invest in unfamiliar products
If an investor suspects that their advisor has engaged in misconduct or made unsuitable investment decisions, they may be able to recover their 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 Austin Roncancio and offering free consultations to clients.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses due to advisor misconduct. They operate on a “No Recovery, No Fee” basis, ensuring that clients can seek justice without upfront costs. Investors can contact the firm toll-free at 1-888-628-5590 for a confidential consultation.
As the case against Austin Roncancio unfolds, it serves as a reminder of the importance of diligence and vigilance in managing one’s investments. By staying informed, asking questions, and seeking help when needed, investors can better protect themselves against financial advisor malpractice and secure their financial futures.
