Barry Buchholz, a financial advisor with LPL Financial LLC, is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, following allegations of unauthorized trading in mutual funds. The firm, with offices in Florida, New York, North Carolina, Arizona, and Texas, is offering free consultations to clients who may have been affected by Buchholz’s alleged misconduct.
According to a recent customer dispute filed on January 18, 2024, Buchholz is accused of engaging in unauthorized trading of mutual funds on behalf of his clients. The details of the alleged unauthorized transactions and the extent of the damages claimed by the customer are currently pending. Buchholz’s FINRA CRD number is 1583582, and he has been registered with LPL Financial LLC as a broker since October 11, 2021.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, the U.S. Securities and Exchange Commission (SEC) has seen a surge in tips and complaints related to pandemic-related misconduct, highlighting the importance of vigilance in protecting investors’ rights.
Understanding Unauthorized Trading and FINRA Rule 2010
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Unauthorized trading occurs when a financial advisor executes trades in a client’s account without obtaining prior consent or authorization. This practice violates FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Unauthorized trading can result in significant financial losses for investors and erode trust in the advisor-client relationship.
The Importance of Proper Authorization and Documentation
Financial advisors must obtain explicit permission from clients before executing any trades on their behalf. This authorization should be documented in writing, either through a trading authorization form or a power of attorney. Advisors should also maintain detailed records of all client communications, including discussions about investment strategies and risk tolerance, to demonstrate that trades align with the client’s objectives.
Protecting Investors from Unauthorized Trading
Investors have the right to expect that their financial advisors will act in their best interests and adhere to ethical standards. When unauthorized trading occurs, it can lead to significant financial harm and undermine the integrity of the investment industry. By holding advisors accountable for their actions and seeking legal recourse, investors can protect themselves and send a clear message that such misconduct will not be tolerated.
Why Unauthorized Trading Matters for Investors
Unauthorized trading can have severe consequences for investors, including:
- Financial losses due to unsuitable or excessive trading
- Increased risk exposure that may not align with the investor’s goals and risk tolerance
- Erosion of trust in the financial advisor and the investment industry as a whole
Investors must remain vigilant and regularly review their account statements to identify any suspicious or unauthorized activity. If unauthorized trading is suspected, investors should immediately contact their financial institution and consider seeking legal counsel to protect their rights and recover any losses.
Red Flags for Financial Advisor Malpractice
Investors should be aware of the following red flags that may indicate financial advisor malpractice:
- Unexplained or excessive trading activity in their accounts
- Trades that do not align with their investment objectives or risk tolerance
- Lack of communication or evasive behavior from their financial advisor
- Inconsistencies between verbal discussions and actual trading activity
Recovering Losses Through FINRA Arbitration
Investors who have suffered losses due to unauthorized trading or other forms of financial advisor malpractice may be able to recover their losses through FINRA arbitration. FINRA arbitration is a dispute resolution process that allows investors to seek compensation for damages caused by the misconduct of financial advisors and brokerage firms.
Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped numerous investors recover their losses through FINRA arbitration. The firm operates on a contingency fee basis, meaning clients pay no fees unless a recovery is obtained. Investors can contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-885-7162.
Protecting Investors’ Rights and Holding Advisors Accountable
As the investigation into Barry Buchholz’s alleged unauthorized trading continues, it serves as a reminder of the importance of investor protection and holding financial advisors accountable for their actions. By working with experienced investment fraud attorneys like those at Haselkorn & Thibaut, investors can safeguard their rights and seek the compensation they deserve when faced with advisor misconduct.
