Understanding the gravity of a financial allegation is crucial for investors, as it can have far-reaching implications on their investments. A recent case that illustrates this involves Michael Sharenow and Wells Fargo Advisors, LLC. The case is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm.
The Seriousness of the Allegation
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On August 29, 2023, a customer dispute was lodged against Michael Sharenow, a previous broker at Wells Fargo Advisors, LLC. The customer alleges that Sharenow recommended an investment based on promises of income levels that did not materialize, leading to taxes on phantom income and a negative return. The disputed period ranges from July 30, 2013, to October 28, 2016, as per FINRA CRD number 1195028.
This allegation is severe because it suggests that the financial advisor may have provided misleading or inaccurate information to the investor. If proven true, this could mean that the advisor violated their fiduciary duty, which requires them to act in the best interest of their clients.
Such allegations can significantly impact investors, as they may suffer financial losses due to the advisor’s alleged misconduct. In this case, the investor not only failed to realize the promised income but also incurred taxes on non-existent income, leading to a negative return on their investment.
Understanding the Allegation and the FINRA Rule
In simple terms, the allegation suggests that the financial advisor made promises about certain income levels from an investment that did not materialize. This could be considered a breach of the FINRA Rule 2111, which requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer.
If the advisor recommended an investment based on inaccurate information or promises, this could be seen as a violation of this rule. This is because the advisor did not act in the best interest of the client and did not provide a suitable investment recommendation.
Haselkorn & Thibaut is presently investigating this case. They offer free consultations to clients who may have been affected by this situation and are committed to helping investors understand their rights and potential remedies.
Why It Matters for Investors
Such allegations matter greatly for investors because they can result in significant financial losses. When an advisor fails to fulfill their fiduciary duty, the investor may end up making investment decisions based on inaccurate or misleading information.
Moreover, it erodes trust in financial advisors and the financial industry as a whole. It underscores the need for investors to be vigilant and proactive in understanding their investments and the advice they receive.
Investors affected by such misconduct can seek recourse through FINRA Arbitration, a dispute resolution mechanism that can help them recover their losses. Haselkorn & Thibaut, with their impressive 98% success rate, extensive experience, and offices in Florida, New York, North Carolina, Arizona, and Texas, can assist investors in this process.
Red Flags and Recovering Losses
Investors should be aware of certain red flags that could indicate financial advisor malpractice. These include inconsistent information, promises of guaranteed returns, and pressure to invest in specific products. If any of these signs are present, it may be prudent to seek legal advice.
Investors who have suffered losses due to such misconduct can recover their losses through FINRA Arbitration. This process involves presenting the case before a panel of arbitrators who make a binding decision on the dispute. Haselkorn & Thibaut specializes in representing investors in such cases.
The firm operates on a “No Recovery, No Fee” policy and offers a toll-free consultation number (1-800-856-3352) for potential clients. With over 50 years of experience and successful financial recoveries for investors, they are well-equipped to handle such cases and help investors recover their losses.
