In a recent development, Chris Abeyta, an Investment Advisor, has been accused of repeatedly violating Regulation S-P (REG SP), a privacy rule, by his client, referred to as “AWA Client.” The allegations, filed on January 9, 2024, claim that Abeyta and his employees sent the client’s personal and financial information to third parties without prior authorization.
According to a Bloomberg article, investment fraud and bad advice from financial advisors have become increasingly prevalent in recent years. The Securities and Exchange Commission (SEC) has been taking steps to combat conflicts of interest and protect investors from unscrupulous practices.
The Allegations Against Chris Abeyta
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According to the complaint, the most recent breach of privacy occurred when Abeyta allegedly sent the client’s personal information to a third party without obtaining the necessary consent. The client also alleges that, prior to this incident, one of Abeyta’s employees had sent the client’s personal financial information to the email addresses of the client’s friends.
In response to these alleged breaches, Abeyta reportedly offered the client pre-paid access to a credit monitoring service to help detect any potential illegal activity resulting from the unauthorized sharing of personal information.
Understanding Regulation S-P (REG SP) and Its Implications
Regulation S-P, also known as the “Privacy of Consumer Financial Information” rule, is a regulation issued by the Securities and Exchange Commission (SEC) that requires financial institutions to protect the privacy of their customers’ personal financial information. This rule applies to investment advisers, brokers, and dealers, among other financial entities.
Under REG SP, financial institutions must provide customers with a clear and conspicuous notice of their privacy policies and practices. They must also obtain customer consent before disclosing any non-public personal information to third parties, except under specific circumstances outlined in the regulation.
Violations of REG SP can lead to disciplinary action by regulatory bodies, such as the Financial Industry Regulatory Authority (FINRA), and may result in fines, suspensions, or even a ban from the financial industry.
The Impact on Investors
The alleged violations by Chris Abeyta and his employees raise serious concerns for investors. The unauthorized sharing of personal and financial information can lead to various risks, including:
- Identity theft
- Financial fraud
- Compromised investment accounts
- Reputational damage
Investors trust their financial advisors to safeguard their sensitive information and act in their best interests. When this trust is breached, it can have far-reaching consequences for the investor’s financial well-being and peace of mind.
Moreover, such incidents underscore the importance of working with reputable and trustworthy financial professionals who adhere to strict ethical standards and regulatory requirements.
Recognizing Red Flags and Seeking Help
Investors should be vigilant in monitoring their financial advisor’s behavior and watch for potential red flags that may indicate misconduct or malpractice. Some warning signs include:
- Unauthorized transactions or account activity
- Lack of transparency or communication from the advisor
- Inconsistencies in account statements or performance reports
- Pressure to make quick investment decisions or transfer funds
If an investor suspects that their financial advisor has engaged in misconduct or caused them financial harm, they should seek the assistance of a qualified investment fraud attorney. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Chris Abeyta and his company.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. They offer free consultations and operate on a contingency basis, meaning clients pay no fees unless a recovery is secured.
Investors who believe they may have been affected by the alleged misconduct of Chris Abeyta or any other financial advisor are encouraged to contact Haselkorn & Thibaut at their toll-free number, 1-888-628-5590, for a confidential consultation.
For more information about Chris Abeyta, investors can access his FINRA BrokerCheck report using his CRD number: 6403098.
