Craig Fredrickson, a broker and investment advisor with Berthel, Fisher & Company Financial Services, Inc., is currently facing allegations of unsuitable investments and misrepresentation. The claimant, who purchased investments in 2015, alleges that Fredrickson and the firm breached their fiduciary duties and that the firm failed to supervise the representative adequately.
The Allegations Against Craig Fredrickson and Berthel, Fisher & Company Financial Services, Inc.
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According to the disclosure on Fredrickson’s FINRA BrokerCheck report, the customer dispute, filed on February 13, 2024, claims that the investments purchased in 2015 were unsuitable and misrepresented. The claimant further alleges that both Fredrickson and Berthel, Fisher & Company Financial Services, Inc. breached their fiduciary duties, and the firm failed to provide adequate supervision of the representative.
The investments in question are classified as Direct Investment, DPP & LP Interests, specifically a Business Development Company. The damage amount requested by the claimant has not been disclosed, and the dispute is currently pending resolution. Investment fraud and bad advice from financial advisors can have devastating consequences for investors, leading to significant financial losses and emotional distress.
Understanding FINRA Rules and Fiduciary Duties
FINRA, the Financial Industry Regulatory Authority, is responsible for regulating broker-dealers and their registered representatives. FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis for believing that a recommended investment or investment strategy is suitable for the customer, based on the customer’s investment profile.
Additionally, brokers and investment advisors have a fiduciary duty to their clients, which means they must act in their clients’ best interests and put their clients’ interests ahead of their own. This duty includes providing accurate and complete information about investments, disclosing any potential conflicts of interest, and ensuring that the investments recommended align with the client’s risk tolerance and financial goals.
The Potential Impact on Investors
Allegations of unsuitable investments and misrepresentation can have significant consequences for investors. If the claims are substantiated, it could mean that the investor was exposed to unnecessary risk or invested in products that did not align with their financial objectives. This can lead to substantial financial losses and undermine the trust between the investor and their financial advisor.
Moreover, when a firm fails to supervise its representatives properly, it can create an environment where misconduct may go unchecked, putting investors at further risk. It is crucial for investors to be aware of their rights and to take action if they suspect any wrongdoing or misconduct by their financial advisors.
Red Flags and Seeking Legal Assistance
Investors should be vigilant for red flags that may indicate financial advisor malpractice, such as:
- Investments that seem too good to be true or promise guaranteed returns
- Pressure to make quick investment decisions without adequate time to review the details
- Lack of transparency or reluctance to provide clear explanations about investment products
- Investments that do not align with the investor’s risk tolerance or financial goals
If an investor suspects they have been a victim of investment fraud or misconduct, they should consider seeking legal assistance from experienced investment fraud attorneys. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Craig Fredrickson and Berthel, Fisher & Company Financial Services, Inc.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses through FINRA arbitration. They offer free consultations and work on a contingency basis, meaning there are no fees unless a recovery is obtained. Investors can contact them toll-free at 1-888-885-7162 for a confidential consultation.
As the Fredrickson case unfolds, it serves as a reminder of the importance of working with trustworthy and ethical financial professionals. By staying informed and taking prompt action when necessary, investors can protect their financial well-being and hold accountable those who fail to uphold their fiduciary responsibilities.
