In a recent development, a serious allegation has been made against financial advisor Michael Sullivan of Edward Jones (CRD 250). The case, which is currently pending, involves a client who alleges that Sullivan placed unauthorized trades in their account during December 2023. This allegation, filed on March 4, 2024, has raised concerns among investors and highlights the importance of understanding the potential risks associated with financial advisors.
The case specifically involves equity listed products, such as common and preferred stocks, which are a common investment vehicle for many individuals. As the investigation unfolds, it is crucial for investors to stay informed about the potential implications of this case and how it may affect their own investments with Edward Jones or other financial institutions. According to a recent study by Bloomberg, investment fraud and bad advice from financial advisors have led to significant losses for investors, emphasizing the need for increased vigilance and due diligence when working with financial professionals.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Michael Sullivan and Edward Jones in relation to this allegation. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut is offering free consultations to clients who may have been affected by this or similar situations.
Understanding unauthorized trading and FINRA Rule 2010
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Unauthorized trading occurs when a financial advisor makes trades in a client’s account without obtaining prior consent or authorization. This practice is strictly prohibited by the Financial Industry Regulatory Authority (FINRA) under Rule 2010, which requires financial advisors to observe high standards of commercial honor and just and equitable principles of trade.
In simple terms, financial advisors must always obtain client approval before executing any trades on their behalf. This rule is in place to protect investors from potential fraud, negligence, or misconduct by ensuring that all investment decisions align with the client’s objectives, risk tolerance, and financial goals.
The significance of unauthorized trading for investors
Unauthorized trading can have severe consequences for investors, as it may lead to substantial financial losses, portfolio mismanagement, and a breach of trust between the client and their financial advisor. In some cases, unauthorized trades may be made in an attempt to generate higher commissions for the advisor at the expense of the client’s best interests.
Investors who suspect that their financial advisor has engaged in unauthorized trading should promptly report their concerns to the appropriate authorities, such as FINRA or the Securities and Exchange Commission (SEC). By taking swift action, investors can help protect their rights and potentially recover any losses resulting from the advisor’s misconduct.
Red flags and recovering losses through FINRA arbitration
Investors should be aware of red flags that may indicate financial advisor malpractice, such as:
- Unexplained or excessive trading activity in their account
- Trades that do not align with their investment objectives or risk tolerance
- Lack of communication or transparency from their financial advisor
If an investor suspects unauthorized trading or other forms of misconduct, they may be able to recover their losses through FINRA arbitration. This process allows investors to seek compensation for damages caused by the financial advisor’s actions, without the need for a lengthy and expensive court battle.
Haselkorn & Thibaut has extensive experience representing investors in FINRA arbitration cases and has successfully recovered millions of dollars for their clients. With their “No Recovery, No Fee” policy, investors can seek legal representation without worrying about upfront costs.
As the investigation into the allegations against Michael Sullivan and Edward Jones continues, investors are encouraged to remain vigilant and seek professional advice if they suspect any wrongdoing in their own accounts. By staying informed and taking proactive steps to protect their investments, individuals can help safeguard their financial future and hold negligent or unethical financial advisors accountable for their actions.
For more information or to schedule a free consultation, investors can contact Haselkorn & Thibaut at their toll-free number: 1-888-885-7162 .
