Franz Koch, a broker and investment advisor associated with Wells Fargo Clearing Services, LLC, is currently facing allegations of unauthorized trading from a client. The customer dispute, filed on January 24, 2024, is currently pending resolution. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is investigating the advisor and company, offering free consultations to affected clients.
According to a Bloomberg article, investment fraud and bad advice from financial advisors have become increasingly common in recent years, with the SEC ramping up enforcement efforts to protect investors. In fact, a study by the Association of Certified Fraud Examiners found that financial statement fraud caused a median loss of $954,000 per incident.
Understanding Unauthorized Trading
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Unauthorized trading occurs when a financial advisor executes trades in a client’s account without obtaining prior consent or approval. This practice violates FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Unauthorized trading can lead to significant financial losses for investors and erode trust in the advisor-client relationship.
The Importance of Investor Protection
Cases like Franz Koch‘s alleged unauthorized trading highlight the importance of investor protection. Investors trust their financial advisors to act in their best interests and manage their investments responsibly. When an advisor breaches this trust by engaging in unauthorized trading, it can have severe consequences for the investor’s financial well-being and future.
Seeking Justice Through FINRA Arbitration
Investors who have suffered losses due to unauthorized trading by their financial advisor may seek recovery through FINRA arbitration. This process allows investors to present their case before a panel of arbitrators who will review the evidence and determine an appropriate resolution. Haselkorn & Thibaut, with their impressive 98% success rate and over 50 years of combined experience, has helped numerous investors recover losses through FINRA arbitration.
Red Flags for Financial Advisor Malpractice
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Unauthorized trades in their account
- Lack of communication or transparency from their advisor
- Inconsistencies between their investment objectives and the trades executed
- Significant or unexplained losses in their portfolio
Protecting Your Investments
To safeguard their investments, investors should regularly review their account statements, question any suspicious activity, and maintain open communication with their financial advisor. If an investor suspects unauthorized trading or other forms of misconduct, they should promptly seek legal guidance from experienced investment fraud attorneys like those at Haselkorn & Thibaut.
Pursuing Recovery With Haselkorn & Thibaut
Haselkorn & Thibaut is committed to helping investors recover losses caused by financial advisor misconduct. With their extensive experience, successful track record, and “No Recovery, No Fee” policy, they provide invaluable support to investors seeking justice. Investors can contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-885-7162 .
As the case against Franz Koch unfolds, it serves as a reminder of the critical role that investor protection plays in the financial industry. By holding financial advisors accountable for their actions and pursuing recovery through FINRA arbitration, investors can take steps to protect their financial future and send a clear message that unauthorized trading will not be tolerated.
