Chris Abeyta, a financial advisor associated with Hart Financial Group, is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, for allegedly selling annuities without appropriate disclosures and violating fiduciary duties. The firm has offices in Florida, New York, North Carolina, Arizona, and Texas, and boasts a 98% success rate in helping investors recover losses through FINRA arbitration.
According to the customer dispute filed on February 2, 2024, Abeyta is accused of selling an annuity to a senior citizen without disclosing that he received higher payouts, trips, and marketing dollars for previous sales of the same annuity family. The customer, who was physically, mentally, and visually debilitated from a previous injury at the time of the sale, claims that Abeyta and Hart used high-pressure sales tactics and failed to disclose the downsides of the product.
The allegations also include violations of Colorado Insurance Best Interest regulations, SEC Regulation Best Interest (Reg BI), and Colorado Privacy laws. The customer states that Abeyta and Hart have shared his private financial data with their new advisory firm without his express authorization, potentially violating Regulation S-P (Reg SP).
Investment fraud and bad advice from financial advisors are unfortunately common occurrences. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with the elderly being particularly vulnerable to these schemes.
Understanding the FINRA rule violations
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The alleged actions of Chris Abeyta and Hart Financial Group appear to violate several FINRA rules designed to protect investors:
- FINRA Rule 2111 (Suitability): Advisors must have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer based on their investment profile.
- FINRA Rule 2020 (Use of Manipulative, Deceptive, or Other Fraudulent Devices): Advisors are prohibited from using manipulative, deceptive, or other fraudulent devices or contrivances in connection with the purchase or sale of any security.
- FINRA Rule 2210 (Communications with the Public): All communications with the public must be fair, balanced, and not misleading.
Additionally, the alleged sharing of private client financial data without express authorization may violate Regulation S-P, which requires financial institutions to protect the confidentiality and security of customer information.
The impact on investors
The alleged misconduct by Chris Abeyta and Hart Financial Group can have significant consequences for investors:
Financial losses
Investors who are sold unsuitable products or misled about the risks and benefits of an investment may suffer substantial financial losses. In this case, the senior citizen investor may have been sold an annuity that did not align with their investment goals or risk tolerance.
Breach of trust
Financial advisors are in a position of trust, and investors rely on their expertise and guidance to make informed decisions. When advisors prioritize their own interests over those of their clients, it erodes the trust that is essential to the advisor-client relationship.
Violation of privacy
The alleged sharing of private client financial data without authorization is a serious breach of privacy. Investors have the right to expect that their personal information will be kept confidential and secure.
Recognizing red flags and seeking help
Investors should be aware of potential red flags that may indicate financial advisor malpractice:
- High-pressure sales tactics
- Lack of transparency about fees, commissions, or conflicts of interest
- Recommending investments that seem unsuitable for your financial situation or risk tolerance
- Unauthorized sharing of personal financial information
If you suspect that you have been a victim of financial advisor misconduct, it is crucial to seek help from experienced professionals. Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, offers free consultations to investors who may have suffered losses due to advisor malpractice. Their “No Recovery, No Fee” policy ensures that clients can seek justice without upfront costs.
By pursuing FINRA arbitration with the help of a skilled investment fraud law firm like Haselkorn & Thibaut, investors can work towards recovering their losses and holding advisors accountable for their actions. To learn more or schedule a free consultation, call Haselkorn & Thibaut at 1-888-885-7162 .
