Investors are often faced with multiple challenges, and one of the most alarming is a breach of contract allegation against their investment advisor. This article delves into the seriousness of such allegations, using a recent case involving Andrew Pandis, a broker and investment advisor currently affiliated with CETERA INVESTMENT SERVICES LLC, as an example.
The Allegation’s Seriousness and Impact on Investors
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On August 28, 2023, a customer dispute was filed against Andrew Pandis citing a breach of contract. The claimant is seeking $12,385.61 in damages (case number CV-011197-23N1010NN). This allegation is serious as it involves a breach of the agreement between the investor and the advisor, which can severely undermine investor confidence and potentially lead to financial losses.
When an investor entrusts their funds to an investment advisor, they expect the advisor to act in their best interests. A breach of contract allegation suggests that the advisor may have violated this trust, potentially causing financial harm to the investor.
Such allegations can also impact the reputation of the associated company, in this case, CETERA INVESTMENT SERVICES LLC (CRD 15340), where Andrew Pandis has been affiliated since December 1, 2017. This can lead to a loss of trust among existing and potential clients, affecting the company’s overall business.
Understanding the Allegation and the FINRA Rule
A breach of contract in investment terms usually implies that the advisor did not fulfill the obligations outlined in the agreement with the investor. This could include a variety of actions or omissions, such as not following the agreed investment strategy or failing to provide the agreed services.
The Financial Industry Regulatory Authority (FINRA) has rules in place to protect investors from such misconduct. For instance, FINRA Rule 2111 requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer. If a broker breaches this rule, it could be considered a violation of contract terms.
Investors can check the background of investment professionals through FINRA’s BrokerCheck tool, which provides essential information about brokers and investment advisors, including any customer disputes or disciplinary actions.
Why It Matters for Investors
Allegations of breach of contract are critical for investors because they can lead to financial losses and erode trust in the investment advisor or firm. If the claim is validated, it can also result in disciplinary actions against the advisor, including fines, suspension, or even expulsion from the industry.
Furthermore, such allegations can serve as a wake-up call for other investors, prompting them to review their agreements with their advisors and ensuring that they are being treated fairly and ethically.
Investors who have suffered losses due to advisor misconduct may be able to recover their losses through FINRA arbitration, a dispute resolution process that is typically faster and less expensive than traditional litigation.
Red Flags for Financial Advisor Malpractice and Recovery of Losses
Investors should be aware of certain red flags that may indicate financial advisor malpractice, such as frequent and unnecessary trading, unsolicited investment recommendations, and a lack of clear and regular communication.
If investors suspect misconduct, they should consider seeking legal advice. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Andrew Pandis and CETERA INVESTMENT SERVICES LLC. With over 50 years of experience and a 98% success rate, the firm offers free consultations to clients and operates on a “No Recovery, No Fee” policy. Investors can reach out to them at their toll-free consultation number, 1-800-856-3352.
Through FINRA arbitration, Haselkorn & Thibaut can help investors recover losses caused by financial advisor misconduct. By standing up for investor rights and holding advisors accountable for their actions, the firm plays a crucial role in maintaining the integrity of the investment industry.
