In a recent development, a client has alleged that their financial advisor, Jana Thielges, failed to exercise a stock election to trade shares of VMW for shares of AVGO. According to the client, they should have received fifteen (15) shares of stock plus an additional $8,522.88. However, the client claims that they only received $16,815.00 and no stock, resulting in an estimated loss of $6,355.08.
The customer dispute, filed on January 12, 2024, is currently pending resolution. Jana Thielges has been a broker and investment advisor with Edward Jones (CRD 250) in the state of North Dakota since January 4, 2007. The allegation involves equity listed products, specifically common and preferred stock.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Jana Thielges and Edward Jones regarding this matter. The firm offers free consultations to clients who may have suffered losses due to financial advisor malpractice.
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 many victims being elderly or inexperienced investors who trust their advisors to make sound financial decisions on their behalf.
Understanding the Allegation and FINRA Rules
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The client’s allegation revolves around the financial advisor’s failure to execute a stock election, which would have allowed the client to trade their shares of VMW for shares of AVGO. Stock elections are typically offered during corporate actions, such as mergers or acquisitions, where shareholders have the option to receive either cash, shares, or a combination of both in exchange for their existing shares.
FINRA Rule 2111, known as the “Suitability Rule,” requires financial advisors to have a reasonable basis to believe 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 the customer’s age, financial situation, investment objectives, and risk tolerance.
Additionally, FINRA Rule 3260 addresses the distribution of cash and securities in connection with corporate actions. This rule ensures that customers receive their entitled distributions in a timely manner and that any necessary adjustments are made to their accounts.
The Importance for Investors
Protecting Your Investments
This case highlights the significance of financial advisors acting in the best interests of their clients and executing their duties with care and diligence. Investors trust their advisors to make informed decisions and take appropriate actions on their behalf, especially during corporate events that can have a substantial impact on their portfolios.
The Role of Suitability
Suitability is a crucial aspect of the client-advisor relationship. Advisors must consider their clients’ individual circumstances and investment goals when making recommendations or executing transactions. Failure to do so can result in significant losses for investors and erode the trust that is essential in these professional relationships.
Timely Execution and Distribution
Corporate actions, such as stock elections, often involve strict deadlines and require prompt action from financial advisors. Delays or failures to execute these actions can lead to missed opportunities or financial losses for investors. It is crucial for advisors to stay informed about corporate events and ensure that their clients’ interests are protected throughout the process.
Red Flags and Recovering Losses
Recognizing Malpractice
Investors should be aware of potential red flags that may indicate financial advisor malpractice. These include:
- Failure to execute transactions in a timely manner
- Disregarding client instructions or preferences
- Lack of communication or transparency regarding account activity
- Unsuitable investment recommendations or strategies
Pursuing Recovery Through FINRA Arbitration
Investors who have suffered losses due to financial advisor malpractice may seek recovery through FINRA arbitration. This process allows investors to resolve disputes with their advisors or brokerage firms in a more efficient and cost-effective manner compared to traditional litigation.
Haselkorn & Thibaut, with their extensive experience and impressive 98% success rate, has helped countless investors recover their losses through FINRA arbitration. The firm operates on a “No Recovery, No Fee” basis, ensuring that clients can pursue their claims without upfront costs.
Seeking Legal Guidance
If you suspect that you have been a victim of financial advisor malpractice, it is essential to seek legal guidance from experienced professionals. Haselkorn & Thibaut offers free consultations to help investors assess their cases and determine the best course of action. Contact them toll-free at 1-888-628-5590 to discuss your situation and potential recovery options.
As the case against Jana Thielges and Edward Jones unfolds, it serves as a reminder of the importance of holding financial advisors accountable for their actions and the need for investors to remain vigilant in protecting their investments. By working with experienced legal professionals, investors can safeguard their financial futures and seek the justice they deserve.
