Curtis Mason, a broker and investment advisor associated with GWN Securities Inc., is facing allegations of unsuitable investment recommendations and refusal to allow a client to sell an investment, resulting in the client losing approximately half of their invested funds.
According to the client’s complaint filed with FINRA on February 12, 2024, Mason allegedly recommended an unsuitable mutual fund investment and subsequently refused to allow the client to sell the investment when requested. As a result, the client claims to have lost around 50% of their invested capital.
The client is seeking damages of $500,000 in the dispute, which Mason and GWN Securities Inc. have denied. The complaint is currently pending resolution.
Unsuitable investment recommendations are a common form of investment fraud that can have devastating consequences for investors. When financial advisors fail to consider their clients’ best interests and recommend investments that do not align with their risk tolerance, investment objectives, or financial situation, it can lead to significant losses and emotional distress.
Understanding Unsuitable Investment Recommendations and FINRA Rule 2111
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FINRA Rule 2111, known as the suitability rule, requires brokers and investment advisors to have a reasonable basis for believing that their investment recommendations are suitable for their clients. This assessment should be based on factors such as the client’s investment objectives, risk tolerance, financial situation, and investment experience.
When a broker or advisor recommends an unsuitable investment or fails to consider a client’s best interests, they may be violating FINRA Rule 2111. This can result in significant financial losses for the client and potential disciplinary action against the broker or advisor.
Additionally, if a broker or advisor refuses to execute a client’s request to sell an investment, they may be breaching their fiduciary duty to act in the client’s best interests and could be held liable for any resulting losses.
The Importance of Suitable Investment Recommendations for Investors
Unsuitable investment recommendations can have severe consequences for investors, including:
- Substantial financial losses
- Inability to meet financial goals
- Emotional distress and loss of trust in financial professionals
Investors rely on the expertise and guidance of their brokers and investment advisors to make informed decisions about their investments. When these professionals fail to prioritize their clients’ best interests and recommend unsuitable investments, it can have a devastating impact on the investors’ financial well-being.
It is crucial for investors to be aware of their rights and to take action if they believe they have been the victim of unsuitable investment recommendations or other forms of financial advisor misconduct.
Red Flags for Financial Advisor Malpractice and Recovering Losses
Investors should be alert to potential red flags that may indicate financial advisor malpractice, including:
- Recommendations that do not align with the investor’s risk tolerance or investment objectives
- Pressure to invest in high-risk or complex products
- Refusal to execute requests to sell investments
- Lack of transparency regarding fees and commissions
If an investor suspects that they have been the victim of unsuitable investment recommendations or other forms of financial advisor misconduct, they may be able to recover their losses through FINRA arbitration.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Curtis Mason and GWN Securities Inc. The firm has over 50 years of combined experience and a 98% success rate in helping investors recover losses through FINRA arbitration.
Haselkorn & Thibaut offers free consultations to investors who believe they may have been the victim of financial advisor misconduct. The firm operates on a “No Recovery, No Fee” basis, meaning clients only pay if a recovery is successfully obtained. Investors can contact Haselkorn & Thibaut toll-free at 1-888-885-7162 to discuss their case and potential options for recovery.
