In a recent development, a serious allegation has been made against former representative Kevin Hobbs, who was associated with PFS INVESTMENTS INC. (CRD 10111) from January 10, 2001, to October 6, 2022. According to the pending customer dispute filed on August 16, 2023, the customers allege that Hobbs assisted them with an outside investment that resulted in a loss of $67,000. This allegation raises concerns about the conduct of the former representative and the potential impact on investors.
The case, which is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, highlights the importance of thoroughly examining the actions of financial advisors and the companies they represent. With offices in Florida, New York, North Carolina, Arizona, and Texas, Haselkorn & Thibaut brings over 50 years of experience to the table, boasting an impressive 98% success rate in financial recoveries for investors.
Investors who have worked with Kevin Hobbs or PFS INVESTMENTS INC. are encouraged to reach out to Haselkorn & Thibaut for a free consultation by calling their toll-free number, 1-888-885-7162 . The firm operates on a “No Recovery, No Fee” policy, ensuring that clients can seek legal assistance without upfront costs.
Understanding the Allegation and FINRA Rules
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The allegation against Kevin Hobbs revolves around the claim that he assisted customers with an outside investment that led to financial losses. In simple terms, this means that the former representative may have engaged in activities or provided advice that was not authorized by or disclosed to his employer, PFS INVESTMENTS INC.
FINRA, the Financial Industry Regulatory Authority, has specific rules in place to protect investors from such misconduct. FINRA Rule 3280 prohibits registered representatives from engaging in outside business activities without prior written notice to their member firm. This rule is designed to prevent potential conflicts of interest and ensure that all investment activities are properly supervised.
Additionally, FINRA Rule 2010 requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade. Engaging in unauthorized outside investments or providing misleading information to clients would be a clear violation of this rule.
The Importance for Investors
The allegation against Kevin Hobbs serves as a reminder of the critical role that transparency and trust play in the relationship between financial advisors and their clients. Investors rely on the expertise and guidance of their advisors to make informed decisions about their financial futures.
Potential Red Flags and Seeking Recovery
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Unauthorized or undisclosed outside investments
- Lack of transparency regarding investment risks and fees
- Pressure to make quick investment decisions
- Inconsistencies between verbal promises and written agreements
If investors suspect that they have fallen victim to financial advisor malpractice, they may be able to recover their losses through FINRA arbitration. Haselkorn & Thibaut has extensive experience representing investors in such cases, leveraging their deep understanding of FINRA rules and regulations to fight for their clients’ rights.
For more information or to schedule a free consultation, investors are encouraged to contact Haselkorn & Thibaut at 1-888-885-7162 or visit their website.
