Fidelity Brokerage Services LLC and one of its registered representatives, Pamela Calhoun, are currently facing allegations of unsuitable investment recommendations and overconcentration in structured products. The customer dispute, filed on January 26, 2024, is currently pending resolution, with the claimant seeking damages from the firm and the advisor.
According to the disclosure on Calhoun’s FINRA BrokerCheck profile, the allegations revolve around the representative’s investment recommendations, which the claimant believes were unsuitable and led to an overconcentration in structured products. The specific details of the products and the extent of the alleged damages have not been disclosed.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the advisor and the company. They are offering free consultations to clients who may have been affected by the alleged misconduct.
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 cases going unreported due to shame or embarrassment.
Understanding unsuitable investment recommendations and overconcentration
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Unsuitable investment recommendations occur when a financial advisor recommends products or strategies that do not align with a client’s investment objectives, risk tolerance, or financial situation. FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis for believing that their recommendations are suitable for their clients.
Overconcentration refers to the practice of investing a significant portion of a client’s portfolio in a single security, sector, or asset class. This approach can expose investors to excessive risk, as the performance of their portfolio becomes heavily dependent on the success of a limited number of investments.
The importance of suitability and diversification for investors
Suitable investment recommendations and proper diversification are essential for investors to achieve their financial goals while managing risk. When financial advisors fail to consider their clients’ unique circumstances and recommend unsuitable or overconcentrated investments, they may be violating their fiduciary duty and exposing their clients to unnecessary losses.
Investors should regularly review their portfolios and question their advisors about the rationale behind their investment recommendations. If an investor believes that their advisor has acted improperly, they should consider seeking legal counsel to protect their rights and recover any losses.
Recognizing red flags and seeking help
Some common red flags that may indicate financial advisor malpractice include:
- Recommendations that seem inconsistent with the investor’s goals or risk tolerance
- A lack of diversification in the portfolio
- Difficulty obtaining clear answers from the advisor about investment decisions
- Unexplained or excessive fees
If an investor suspects misconduct, they should contact a qualified investment fraud attorney. Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped numerous investors recover their losses through FINRA arbitration.
The benefits of FINRA arbitration
FINRA arbitration is a dispute resolution process that allows investors to seek recovery of their losses from financial advisors and brokerage firms. This process is typically faster and more cost-effective than traditional litigation, and it is conducted by neutral arbitrators who are knowledgeable in securities law and industry practices.
Haselkorn & Thibaut has extensive experience representing investors in FINRA arbitration proceedings. The firm operates on a contingency fee basis, meaning they do not charge any fees unless they successfully recover losses for their clients.
Protecting your investments
As the investigation into Fidelity Brokerage Services LLC and Pamela Calhoun unfolds, investors should remain vigilant and proactive in monitoring their investments. If you believe that you have suffered losses due to unsuitable investment recommendations or overconcentration, contact Haselkorn & Thibaut at 1-888-885-7162 for a free consultation.
Remember, recovering your losses is possible with the help of experienced investment fraud attorneys. By working with a reputable firm like Haselkorn & Thibaut, you can protect your rights and seek the compensation you deserve.
