David Ford, a broker and investment advisor associated with LPL Financial LLC, has been named in a customer dispute alleging misrepresentation and unsuitability related to investments in real estate securities and business development companies (BDCs). The complaint, filed on January 31, 2024, was ultimately denied by the firm.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with the elderly being particularly vulnerable to financial exploitation.
Understanding the Allegations and FINRA Rules
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The customer’s complaint against David Ford centers around two key issues: misrepresentation and unsuitability. Misrepresentation occurs when a broker or advisor provides false or misleading information about an investment, while unsuitability refers to recommending investments that do not align with the client’s risk tolerance, financial goals, or investment objectives.
FINRA Rule 2111, known as the “Suitability Rule,” requires brokers and advisors to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as age, financial situation, investment experience, and risk tolerance.
The Importance for Investors
This case highlights the significance of working with trustworthy and transparent financial professionals. Investors rely on their brokers and advisors to provide accurate information and recommend suitable investments that align with their financial goals and risk tolerance.
Misrepresentation and unsuitability can lead to significant financial losses for investors, emphasizing the need for thorough due diligence when selecting a financial advisor. Investors should review their advisor’s background, including any disciplinary history or customer complaints, using resources such as FINRA’s BrokerCheck.
Recognizing Red Flags and Seeking Recovery
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Lack of transparency regarding investment risks and fees
- Pressure to make quick investment decisions
- Recommendations that seem too good to be true or do not align with the investor’s goals and risk tolerance
If an investor believes they have been the victim of financial advisor malpractice, they may be able to recover losses through FINRA arbitration. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating David Ford and LPL Financial LLC.
With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. The firm operates on a “No Recovery, No Fee” basis, offering free consultations to potential clients. Investors can contact Haselkorn & Thibaut toll-free at 1-888-885-7162 to discuss their case and explore their options for financial recovery.
While the complaint against David Ford was ultimately denied, this case serves as a reminder for investors to remain vigilant, thoroughly vet their financial advisors, and promptly seek legal guidance if they suspect misconduct. By working with experienced investment fraud attorneys like those at Haselkorn & Thibaut, investors can protect their rights and pursue the recovery of any losses stemming from financial advisor malpractice.
