George Purdy, a broker and investment advisor associated with Cetera Investment Services LLC, is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm. The firm is offering free consultations to clients who may have suffered losses due to Purdy’s alleged failure to execute trades in mutual funds.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, the Securities and Exchange Commission (SEC) has been cracking down on investment fraud, with numerous cases involving Ponzi schemes and other forms of misconduct.
Allegations Against George Purdy and Cetera Investment Services LLC
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According to a recent disclosure on Purdy’s FINRA BrokerCheck profile (CRD #5865750), a customer dispute was filed on January 31, 2024, alleging that Purdy failed to execute trades in mutual funds. The dispute is currently pending, and the damage amount requested has not been disclosed.
Cetera Investment Services LLC, where Purdy has been employed since October 27, 2022, is a broker-dealer and investment advisory firm registered with the SEC and a member of FINRA.
Understanding the Allegations and FINRA Rules
Failing to execute trades as requested by a client is a serious issue that violates FINRA rules and can result in significant losses for investors. FINRA Rule 2010 requires brokers to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
Additionally, FINRA Rule 5310 (Best Execution and Interpositioning) requires brokers to use reasonable diligence to ascertain the best market for a security and buy or sell in that market so that the resulting price to the customer is as favorable as possible under prevailing market conditions.
The Importance of Proper Trade Execution for Investors
Investors rely on their brokers and investment advisors to execute trades promptly and accurately to maximize returns and minimize losses. When a broker fails to execute trades as requested, investors may miss out on opportunities to buy or sell securities at optimal prices, resulting in financial harm.
Moreover, delays in trade execution can lead to increased market risk, as the prices of securities can fluctuate rapidly. Investors may also incur additional costs, such as higher transaction fees or lost interest, due to the broker’s failure to execute trades in a timely manner.
Red Flags for Financial Advisor Malpractice
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Unexplained delays in trade execution
- Unauthorized trades or trades that deviate from the client’s instructions
- Lack of communication or transparency regarding trade activity
- Inconsistencies between the client’s account statements and trade confirmations
Recovering Losses Through FINRA Arbitration
Investors who have suffered losses due to a broker’s failure to execute trades or other forms of misconduct may be able to recover their losses through FINRA arbitration. FINRA arbitration is a private, judicial process that allows investors to resolve disputes with brokers and brokerage firms.
Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, has over 50 years of combined experience representing investors in FINRA arbitration cases. The firm has a 98% success rate and operates on a “No Recovery, No Fee” basis, meaning clients pay no legal fees unless a recovery is obtained.
Free Consultation for Affected Investors
Haselkorn & Thibaut encourages investors who may have been affected by George Purdy’s alleged failure to execute trades to contact the firm for a free consultation. Investors can call the firm’s toll-free number at 1-888-885-7162 to discuss their legal options and potential recovery of losses.
