In a recent case that has sent shockwaves through the investment community, Bradley Behrendt, a broker and investment advisor associated with Securian Financial Services, Inc. and Cetera Advisor Networks LLC, has been accused of failing to follow a client’s explicit instructions, resulting in significant financial losses and tax liabilities for the investor. The allegation, which was settled on August 12, 2023, highlights the importance of trust and communication between financial advisors and their clients.
Investment fraud and bad advice from financial advisors are unfortunately common occurrences in the industry. According to a Bloomberg article, the U.S. Securities and Exchange Commission (SEC) charged a real estate investment firm with a $550 million fraud scheme in 2021, showcasing the scale of investment fraud that can occur.
The Gravity of the Allegation
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According to the complaint, the client had authorized trades in her account to generate requested cash but had specifically instructed Bradley Behrendt not to sell certain holdings. However, in a grave error, the holdings were sold, causing the client to incur a substantial tax liability of $20,248.00. The settlement amount matched the claimed damages, indicating the seriousness of the misconduct.
Impact on Investors
This case serves as a stark reminder of the potential consequences when financial advisors disregard their clients’ instructions. Investors place their trust and financial well-being in the hands of their advisors, expecting them to act in their best interests and follow their directives. When this trust is violated, it can lead to significant financial losses and erode the confidence investors have in the financial services industry as a whole.
Understanding the FINRA Rule Violation
The actions of Bradley Behrendt appear to be in direct violation of FINRA Rule 2010, which requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade. By failing to adhere to the client’s clear instructions and causing financial harm, Behrendt breached the fundamental duty of care and loyalty owed to the investor.
Protecting Investors’ Rights
This case underscores the critical importance of investor protection and the role of regulatory bodies like FINRA in holding financial advisors accountable for their actions. Investors must remain vigilant and thoroughly vet their financial advisors, ensuring they have a proven track record of integrity and client-centric service. Investment fraud lawyers can help investors protect their rights and recover losses caused by fraudulent or negligent financial advisors.
Seeking Justice for Aggrieved Investors
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Bradley Behrendt and the associated firms. With over 50 years of combined experience and an impressive 98% success rate, Haselkorn & Thibaut has a proven track record of securing successful financial recoveries for investors through FINRA arbitration.
Investors who have suffered losses due to the misconduct of Bradley Behrendt or any other financial advisor are encouraged to contact Haselkorn & Thibaut for a free consultation. Their toll-free number is 1-888-994-8066, and they operate on a “No Recovery, No Fee” basis, ensuring that aggrieved investors can seek justice without additional financial burdens.
Red Flags for Financial Advisor Misconduct
Investors should be aware of the following red flags that may indicate financial advisor misconduct:
- Unauthorized trades or transactions
- Failure to follow client instructions
- Lack of transparency or communication
- Excessive or unexplained fees
- Pressure to make unsuitable investments
If any of these red flags are present, investors should promptly report their concerns to the appropriate authorities and seek legal counsel to protect their rights and recover any losses.
The Path to Recovery
For investors who have fallen victim to financial advisor misconduct, the road to recovery starts with taking action. By working with experienced investment fraud attorneys like those at Haselkorn & Thibaut, investors can navigate the FINRA arbitration process and seek the compensation they deserve.
FINRA arbitration provides a fair and efficient forum for resolving disputes between investors and financial advisors. With the guidance of skilled attorneys, investors can present a compelling case and hold wrongdoers accountable for their actions.
As the investigation into Bradley Behrendt and the associated firms continues, investors who have been impacted are urged to come forward and share their experiences. By working together and standing up against misconduct, we can create a safer and more transparent financial services industry that truly puts investors’ interests first.
For more information about Bradley Behrendt, investors can access his FINRA BrokerCheck report, which provides detailed information about his employment history, licenses, and any prior regulatory actions or customer disputes.
