In a recent development, a customer dispute has been filed against financial advisor Harrison Bauman of Raymond James & Associates, Inc. (CRD #705) in New York. The claimant alleges that Bauman failed to follow her instructions to reinvest dividends from specified securities. The case, which was filed on January 19, 2024, is currently pending resolution.
According to the disclosure detail, the allegation involves equity listed (common & preferred stock) products. The damage amount requested by the claimant has not been disclosed. Harrison Bauman, who has been with Raymond James & Associates, Inc. since March 14, 2016, denies the allegations. In his broker comment, Bauman states, “I deny each and every allegation of wrongdoing in the Statement of Claim. I fulfilled my obligations with regards to this client and believe the evidence will show that her allegations have no merit. I intend to fully defend myself from this claim.”
The case is now under investigation, and the outcome will be determined through the FINRA arbitration process. Haselkorn & Thibaut, a national investment fraud law firm, is currently investigating Harrison Bauman and Raymond James & Associates, Inc. in connection with this dispute. They are offering free consultations to clients who may have suffered losses due to the alleged misconduct.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, the U.S. Securities and Exchange Commission (SEC) reported a 26% increase in investment fraud tips during the COVID-19 pandemic.
Understanding the Allegation and FINRA Rule
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The allegation against Harrison Bauman revolves around the failure to follow a client’s instructions to reinvest dividends from specified securities. In simple terms, the client claims that Bauman did not act according to her wishes when it came to managing her investments.
FINRA, the Financial Industry Regulatory Authority, has specific rules in place to protect investors and ensure that financial advisors act in their clients’ best interests. One such rule is FINRA Rule 2111, also known as the “Suitability Rule.” This rule requires financial advisors to have a reasonable basis to believe that their investment recommendations are suitable for their clients based on factors such as the client’s investment objectives, risk tolerance, and financial situation.
If a financial advisor fails to follow a client’s instructions or makes unsuitable investment recommendations, they may be in violation of FINRA rules and subject to disciplinary action.
The Importance for Investors
This case highlights the importance of investor protection and the role of FINRA in regulating the financial industry. Investors trust their financial advisors to manage their investments responsibly and act in their best interests. When an advisor fails to do so, it can result in significant financial losses for the investor.
Investors should be aware of their rights and the recourse available to them if they believe their financial advisor has engaged in misconduct. FINRA arbitration is a process through which investors can seek to recover losses caused by the improper actions of their financial advisors.
Haselkorn & Thibaut, with their extensive experience and impressive success rate, can help investors navigate the complex arbitration process and fight for their rights. Their “No Recovery, No Fee” policy ensures that investors can seek justice without worrying about upfront legal costs.
Red Flags and Recovering Losses
Investors should be vigilant for red flags that may indicate financial advisor malpractice. Some warning signs include:
- Unauthorized trades or transactions
- Failure to follow the client’s instructions
- Lack of transparency or communication
- Unsuitable investment recommendations
If an investor suspects that their financial advisor has engaged in misconduct, they should contact a qualified investment fraud law firm like Haselkorn & Thibaut. With offices in Florida, New York, North Carolina, Arizona, and Texas, they are well-equipped to handle cases nationwide.
Haselkorn & Thibaut‘s team of experienced attorneys has a deep understanding of FINRA arbitration and a proven track record of success in recovering losses for investors. Their 98% success rate speaks to their dedication and expertise in fighting for their clients’ rights.
Investors who have suffered losses due to the alleged misconduct of Harrison Bauman or any other financial advisor should not hesitate to seek help. They can contact Haselkorn & Thibaut for a free consultation by calling their toll-free number: 1-888-885-7162 .
