Chris Abeyta, a registered investment advisor with American Wealth Advisors (AWA), is currently facing allegations of misconduct related to the sale of fixed annuities. According to the pending customer dispute filed on January 17, 2024, clients allege that Abeyta pressured them to invest in fixed annuity products without properly disclosing his financial incentives and conflicts of interest.
The clients claim that Abeyta failed to inform them about the higher commissions he received for selling specific insurance products, particularly fixed annuities, compared to other alternatives that may have been commission-free under AWA’s standard investment management fees. As a result, the clients allege that Abeyta violated Regulation Best Interest (Reg BI) by prioritizing his own financial gain over their best interests.
Furthermore, the clients allege that Abeyta breached their privacy by sharing their personal information with an unauthorized competing registered investment advisory (RIA) firm without obtaining their prior consent. The case is currently pending, and the damage amount requested by the clients has not been disclosed.
According to a recent study by the U.S. Government Accountability Office, investment fraud and bad advice from financial advisors cost American investors billions of dollars each year. The study found that from 2012 to 2019, the Securities and Exchange Commission (SEC) ordered fraudulent advisors to return $9.2 billion to harmed investors.
Understanding Regulation Best Interest (Reg BI) and Its Implications
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Regulation Best Interest, or Reg BI, is a rule established by the Securities and Exchange Commission (SEC) that requires broker-dealers and their associated persons to act in the best interest of their retail customers when making investment recommendations. This rule aims to ensure that financial advisors prioritize their clients’ needs and objectives over their own financial incentives.
Under Reg BI, financial advisors must provide clear and transparent disclosures about their conflicts of interest, such as commission structures and other compensation arrangements that may influence their investment recommendations. By failing to disclose his higher commissions for selling fixed annuities, Chris Abeyta allegedly violated this crucial aspect of Reg BI.
The Importance of Disclosure and Transparency in Financial Advice
The allegations against Chris Abeyta underscore the significance of full disclosure and transparency in the financial advisory industry. Investors rely on their advisors to provide unbiased guidance and recommendations that align with their financial goals and risk tolerance. When advisors fail to disclose conflicts of interest or prioritize their own financial gain, it erodes the trust that is essential to the advisor-client relationship.
Why This Case Matters for Investors
The case involving Chris Abeyta and American Wealth Advisors serves as a reminder for investors to remain vigilant when working with financial advisors. It is crucial to ask questions, seek clarification, and thoroughly understand the products being recommended and the potential conflicts of interest that may influence an advisor’s recommendations.
Investors should also be aware of their rights and protections under Reg BI. If they suspect that their advisor has violated this rule or acted against their best interests, they can take action by filing a complaint with the appropriate regulatory authorities, such as the SEC or the Financial Industry Regulatory Authority (FINRA).
Seeking Legal Assistance for Investment Fraud and Misconduct
If you believe that you have been a victim of investment fraud or misconduct, it is essential to seek legal assistance from experienced professionals. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the case involving Chris Abeyta and American Wealth Advisors.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses resulting from financial advisor misconduct. They offer free consultations and operate on a contingency fee basis, meaning clients only pay if a recovery is made.
How FINRA Arbitration Can Help Investors Recover Losses
Investors who have suffered losses due to investment fraud or misconduct may be able to recover their losses through FINRA arbitration. This process allows investors to seek compensation from their financial advisors or brokerage firms without going to court.
Haselkorn & Thibaut has extensive experience representing investors in FINRA arbitration proceedings. Their team of skilled attorneys can guide you through the process, help gather evidence to support your claim, and fight for the compensation you deserve.
If you have invested with Chris Abeyta or American Wealth Advisors and believe that you have been a victim of investment fraud or misconduct, contact Haselkorn & Thibaut today for a free consultation. Call their toll-free number at 1-888-885-7162 to discuss your case and learn more about your legal options.
Red Flags for Financial Advisor Malpractice
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Lack of transparency regarding fees, commissions, and conflicts of interest
- Pressure to invest in specific products or make hasty investment decisions
- Unauthorized trading or sharing of personal information
- Inconsistent or vague explanations about investment strategies and risks
If you notice any of these warning signs, it is crucial to address your concerns with your advisor and, if necessary, seek legal guidance from a firm like Haselkorn & Thibaut.
Remember, as an investor, you have the right to work with a financial advisor who prioritizes your best interests and provides transparent, unbiased advice. By staying informed, asking questions, and seeking help when needed, you can protect your investments and secure your financial future.
