Investors are often faced with a myriad of investment opportunities, each with its own set of risks and rewards. However, when these investment decisions result in losses due to alleged unsuitable investments, it becomes a matter of serious concern. This is the case with a pending customer dispute involving Eric Kiblen from Purshe Kaplan Sterling Investments (CRD 35747). The client alleges unsuitable investments, breach of fiduciary duty, and negligence regarding the sale of Griffin Capital REIT II and Northstar Healthcare, which occurred in 2015. The claim, currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, is set at $25,000.00.
Understanding the Allegation
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Financial advisors are expected to recommend suitable investments to their clients, taking into account their financial situation, investment objectives, and risk tolerance. In this case, the client alleges that the advisor recommended unsuitable investments, specifically Griffin Capital Essential Asset REIT II and Northstar Healthcare, which were illiquid assets. The client’s frustration arose when these investments did not liquidate as expected, resulting in financial losses.
The FINRA Rule
The Financial Industry Regulatory Authority (FINRA) has established rules to protect investors. One of these is the Suitability Rule (Rule 2111), which requires that a firm or associated person have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer.
Why It Matters for Investors
The allegation is a serious matter for investors as it highlights the potential risks associated with unsuitable investments. It serves as a reminder for investors to thoroughly understand the nature of their investments, including their liquidity. It also underscores the importance of advisors adhering to the FINRA Suitability Rule, which is designed to protect investors from unsuitable investment recommendations.
Red Flags for Financial Advisor Malpractice
Investors should be aware of certain red flags that may indicate potential financial advisor malpractice. These include frequent trading, unauthorized transactions, and recommendations of unsuitable investments. In this case, the alleged recommendation of illiquid assets, despite the client’s dissatisfaction with their inability to liquidate, could be seen as a red flag.
Recovering Losses through FINRA Arbitration
Investors who have suffered losses due to alleged financial advisor malpractice may be able to recover their losses through FINRA Arbitration. This is a dispute resolution process that is quicker and less formal than litigation. Haselkorn & Thibaut, with over 50 years of experience and a 98% success rate, specializes in helping investors recover their losses through this process. They offer a “No Recovery, No Fee” policy and free consultations, which can be arranged by calling their toll-free number at 1-888-885-7162 .
In conclusion, it is essential for investors to understand the seriousness of allegations of unsuitable investments and the potential consequences. By being aware of the red flags and knowing how to seek help, investors can better protect themselves and their investments.
For more information on this case, you can visit the FINRA CRD number 4125488.
