Howard Kaplan, a former broker with LPL Financial LLC, is facing a serious allegation from a customer who claims that an investment made in 2014 was unsuitable for their investment objectives and risk tolerance. The case, which is currently pending, involves a real estate security and has the potential to significantly impact investors who have worked with Kaplan or LPL Financial LLC.
According to FINRA’s BrokerCheck, Howard Kaplan was registered with LPL Financial LLC (CRD# 6413) in the state of New Jersey from July 30, 2010, to February 8, 2016. The allegation against Kaplan raises concerns about the suitability of investments recommended to clients during his tenure at the firm.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a study by Forbes, Ponzi schemes and other forms of investment fraud have been on the rise in recent years, with many investors falling victim to unscrupulous advisors who prioritize their own financial gain over the well-being of their clients.
Understanding the Allegation and Its Implications
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The customer’s allegation revolves around the concept of suitability, which is a crucial aspect of the financial advisor-client relationship. FINRA Rule 2111 requires that financial advisors 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, risk tolerance, and financial objectives.
In this case, the customer alleges that Howard Kaplan recommended an investment in a real estate security that was not aligned with their investment objectives and risk tolerance. If proven true, this could constitute a violation of FINRA rules and a breach of the advisor’s fiduciary duty to act in the best interests of their client.
The Importance of Suitability in Investment Recommendations
FINRA Rule 2111, known as the “Suitability Rule,” is a cornerstone of investor protection. It mandates that financial advisors must have a firm understanding of their client’s financial situation, investment experience, and risk tolerance before making any investment recommendations. Advisors are required to conduct due diligence on the investments they recommend, ensuring that they are appropriate for the client’s unique circumstances.
When an advisor fails to adhere to the Suitability Rule, investors can suffer significant financial losses. Unsuitable investments may expose investors to excessive risk, leading to the erosion of their principal or missed opportunities for growth in line with their investment objectives.
Protecting Investors’ Rights and Recovering Losses
For investors who have suffered losses due to unsuitable investment recommendations, it is crucial to understand their rights and the steps they can take to recover their losses. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Howard Kaplan and LPL Financial LLC in connection with this allegation.
Haselkorn & Thibaut has over 50 years of combined experience in representing investors who have fallen victim to investment fraud and misconduct. With a remarkable 98% success rate, the firm has a proven track record of helping investors recover their losses through FINRA arbitration.
Recognizing Red Flags and Seeking Help
Investors should be vigilant in monitoring their investments and the conduct of their financial advisors. Some red flags that may indicate potential misconduct include:
- Investments that consistently underperform benchmarks or expectations
- Lack of transparency or communication from the advisor
- Unexplained or excessive fees
- Pressure to make quick investment decisions
If you suspect that you have been the victim of investment fraud or unsuitable investment recommendations, it is essential to seek help from experienced professionals. Haselkorn & Thibaut offers free consultations to investors, providing them with the opportunity to discuss their case and explore their legal options.
Investors can contact Haselkorn & Thibaut toll-free at 1-888-885-7162 to schedule a consultation. The firm operates on a “No Recovery, No Fee” basis, meaning that clients only pay if a successful recovery is made on their behalf.
Conclusion
The allegation against Howard Kaplan and LPL Financial LLC serves as a reminder of the importance of suitability in investment recommendations. Investors must remain vigilant and take action if they believe they have been the victim of investment fraud or misconduct. With the help of experienced investment fraud attorneys like those at Haselkorn & Thibaut, investors can fight to protect their rights and recover their losses through FINRA arbitration.
