Chris Abeyta, a registered investment advisor, has been accused of failing to follow instructions, failing to disclose pertinent information, and unauthorized release of private client information. The client alleges that Abeyta highly encouraged her to invest in fixed annuity sales without informing her of his insurance sales incentives, upward commission bonuses, and other conflicts of interest involved in the sale of one particular insurance product family over other alternatives.
The client further alleges that she was not informed that Abeyta’s insurance sales generated higher incentives for him to sell commission insurance products as opposed to any other investment, resulting in a violation of Regulation Best Interest. Additionally, the client alleges a violation of her privacy, claiming that Abeyta mailed her name to an unauthorized recipient without her authorization.
On March 22, 2024, the client withdrew her complaint. The allegations against Chris Abeyta are currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg report, investment fraud cost Americans $1.7 billion in 2020 alone. It is crucial for investors to remain vigilant and thoroughly research their financial advisors before entrusting them with their hard-earned money.
Understanding the Allegations and FINRA Rules
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The allegations against Chris Abeyta involve several potential violations of FINRA rules and regulations. Regulation Best Interest, or Reg BI, requires financial advisors to act in the best interest of their clients when making investment recommendations. This includes disclosing any conflicts of interest, such as incentives or bonuses tied to the sale of specific products.
Additionally, FINRA Rule 2010 requires financial advisors to observe high standards of commercial honor and just and equitable principles of trade. Failing to disclose conflicts of interest or unauthorized release of private client information may violate this rule.
Investors should be aware of their rights and the obligations of their financial advisors. They should also understand the potential consequences of advisor misconduct, which can result in significant financial losses.
The Importance for Investors
The allegations against Chris Abeyta highlight the importance of transparency and trust in the financial advisor-client relationship. Investors rely on their advisors to provide unbiased advice and recommendations that align with their best interests.
When advisors fail to disclose conflicts of interest or engage in unauthorized activities, it erodes the trust that is essential for a productive working relationship. Investors may find themselves in situations where they have made investment decisions based on incomplete or misleading information, potentially leading to significant financial losses.
It is crucial for investors to remain vigilant and proactive in monitoring their investments and the activities of their financial advisors. By staying informed and asking questions, investors can better protect their financial well-being.
Recognizing Red Flags and Recovering Losses
Investors should be aware of potential red flags that may indicate financial advisor misconduct, such as:
- Lack of transparency regarding fees, commissions, or conflicts of interest
- Unauthorized transactions or release of personal information
- Pressure to invest in specific products or make quick decisions
If an investor suspects misconduct or has suffered financial losses due to advisor malpractice, they may be able to recover damages through FINRA arbitration. Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, has over 50 years of experience helping investors recover losses.
With a 98% success rate and a “No Recovery, No Fee” policy, Haselkorn & Thibaut is committed to fighting for investors’ rights. Investors can contact the firm for a free consultation by calling their toll-free number at 1-888-628-5590.
Disclosure: Chris Abeyta (CRD #6403098)
