Investment allegations are a serious matter that can have significant financial and reputational consequences for both advisors and investors. This article will discuss a pending customer dispute against Terri Fassi, a Registered Representative of Centaurus Financial, Inc. (CRD 30833) under the case number 23-02342. The allegation, filed on 9/1/2023, accuses Fassi of recommending a high-risk, speculative, complex, and illiquid investment in September 2019, thereby breaching her fiduciary duty. The claimant seeks $50,000 in damages. Fassi has denied any wrongdoing and is prepared to defend her actions.
Unpacking the Allegation
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The allegation against Terri Fassi is a serious one. It accuses her of recommending an investment that was high-risk, speculative, complex, and illiquid. Such investments can be difficult to sell or convert into cash without a substantial loss in value. The claimant alleges that Fassi breached her fiduciary duty, a legal obligation to act in the best interest of her client.
The FINRA Rule
In simple terms, the Financial Industry Regulatory Authority (FINRA) has rules that require financial advisors to recommend investments that are suitable for their clients. This means considering the client’s financial situation, investment objectives, and risk tolerance. If Fassi recommended an unsuitable investment, she may have violated FINRA Rule 2111.
Investor Impact
Such allegations matter immensely to investors. When a financial advisor recommends an unsuitable investment, the investor could potentially lose a significant portion of their investment. This can impact their financial security and future planning. Furthermore, such allegations can erode trust in financial advisors, making investors more cautious and hesitant in their future investment decisions.
Red Flags and Recovery
Investors should be aware of potential red flags for financial advisor malpractice. These can include frequent trades to generate commissions, recommending investments that don’t align with the investor’s risk tolerance or financial goals, and failure to provide adequate information about recommended investments. If you’ve suffered losses due to such malpractice, FINRA Arbitration can help recover losses.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the advisor and company. With over 50 years of experience and a remarkable 98% success rate, they have successfully recovered financial losses for investors. They offer free consultations and operate on a “No Recovery, No Fee” policy. You can reach them on their toll-free consultation number 1-800-856-3352.
Investors who believe they may have been victims of investment fraud or broker malpractice are encouraged to contact Haselkorn & Thibaut for a free review of their case. Remember, it’s not just about recovering financial losses, but also about holding those responsible accountable.
