Investors trust their financial advisors to make decisions that will benefit their financial future. However, when allegations of misconduct arise, it is crucial to understand the seriousness of such claims. One such case currently under investigation involves Patrick Hobert, a Registered Representative associated with Centaurus Financial, Inc.
The Seriousness of the Allegation and Case Information
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The allegation against Patrick Hobert, currently pending, was filed on September 20, 2023, by customers who claimed that Hobert recommended an unsuitable, high-risk, speculative, and illiquid investment in February of 2020. The customers also allege that Hobert breached his fiduciary duty. The case is listed under the number 23-02484 and the dispute amount is $50,000.
Hobert has vehemently denied any wrongdoing, asserting that the allegations are without merit. He maintains that the investments were suitable and were recommended based on the customer’s objectives, goals, and financial circumstances. He also states that the customers confirmed in writing that they had received and understood all investment documentation/disclosures.
The case is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm with a 98% success rate and over 50 years of experience in helping investors recover their losses.
Explanation in Simple Terms and the FINRA Rule
The Financial Industry Regulatory Authority (FINRA) is a non-governmental organization that regulates member brokerage firms and exchange markets in the United States. According to FINRA Rule 2111, a broker must have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer. This rule is based on the information obtained through reasonable diligence to ascertain the customer’s investment profile.
In this case, the customers allege that Hobert breached this rule by recommending an investment that was high-risk, speculative, and illiquid, which they claim was unsuitable for their financial circumstances and goals.
Why It Matters for Investors
Investors rely heavily on the advice and recommendations of their financial advisors. When a financial advisor breaches their fiduciary duty, it can result in significant financial losses for the investor. Therefore, it is essential for investors to understand the seriousness of such allegations and to take appropriate action if they believe they have been a victim of such misconduct.
Investors who believe they may have been affected by Patrick Hobert’s alleged misconduct can contact Haselkorn & Thibaut for a free consultation. The firm’s “No Recovery, No Fee” policy ensures that clients do not pay unless they recover their losses.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
Investors should be aware of red flags that may indicate financial advisor malpractice, such as the recommendation of unsuitable, high-risk investments, failure to disclose important information about an investment, and breach of fiduciary duty.
If investors suspect they have been a victim of such misconduct, they can potentially recover their losses through FINRA Arbitration. Haselkorn & Thibaut specializes in this area and has helped numerous investors recover their losses. Investors can contact the firm at their toll-free number 1-800-856-3352 for a free consultation.
In conclusion, allegations of financial advisor misconduct should be taken seriously. Investors who believe they may have been affected by such misconduct are encouraged to contact Haselkorn & Thibaut for a free consultation and to potentially recover their losses.
