Joseph Froemming, a former financial advisor at Edward Jones, is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, following allegations of unauthorized account transfers resulting in significant losses for his client. The firm, with offices in Florida, New York, North Carolina, Arizona, and Texas, is offering free consultations to any of Froemming’s clients who may have experienced similar issues.
According to a recent disclosure on Froemming’s FINRA BrokerCheck profile (CRD #6288745), a client has alleged that the financial advisor transferred her TIAA/CREF assets to Edward Jones without her approval, resulting in a loss of $7,477. The alleged misconduct took place between March 8, 2014, and April 4, 2022, while Froemming was employed by Edward Jones in North Carolina.
Investment fraud and bad advice from financial advisors are unfortunately common occurrences. According to a Forbes article, the U.S. Securities and Exchange Commission (SEC) estimates that approximately $40 billion is lost to investment fraud each year. Investors must remain vigilant and thoroughly research their financial advisors to minimize the risk of falling victim to fraudulent practices.
Understanding the Allegations and FINRA Rules
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The alleged unauthorized transfer of assets is a serious violation of FINRA rules, which require financial advisors to obtain explicit permission from clients before making any transactions in their accounts. FINRA Rule 2010 states that brokers must observe high standards of commercial honor and just and equitable principles of trade, while Rule 2150 prohibits the improper use of a client’s securities or funds.
In simple terms, Froemming is accused of moving his client’s money from one institution to another without her consent, causing her to lose a significant amount of money in the process. This type of misconduct is a breach of the trust that clients place in their financial advisors and can result in serious consequences for the advisor, including fines, suspensions, or even a permanent ban from the industry.
The Impact on Investors
Unauthorized account transfers can have a devastating impact on investors, who may find themselves facing substantial losses without any prior knowledge of the transactions taking place. In addition to the financial harm, such misconduct can also cause emotional distress and erode the trust that investors have in the financial industry as a whole.
Investors who have worked with Joseph Froemming or any other financial advisor at Edward Jones should carefully review their account statements and transaction histories to ensure that all activities align with their investment goals and risk tolerance. If any discrepancies or unauthorized transactions are discovered, it is crucial to seek legal guidance from experienced investment fraud attorneys, such as those at Haselkorn & Thibaut.
Protecting Yourself from Financial Advisor Malpractice
To safeguard their investments and recover potential losses, investors should be aware of the red flags that may indicate financial advisor malpractice:
- Unauthorized transactions or account transfers
- Excessive trading or churning of accounts
- Unsuitable investment recommendations
- Misrepresentation or omission of material information
- Failure to follow a client’s instructions or investment objectives
If any of these warning signs are present, investors should promptly contact a qualified investment fraud law firm to discuss their legal options. Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped numerous investors recover their losses through FINRA arbitration, a process that allows clients to seek compensation for damages caused by financial advisor misconduct.
Investors who believe they may have been victims of financial advisor malpractice can contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-885-7162 . The firm operates on a “No Recovery, No Fee” basis, meaning clients only pay if a successful recovery is made on their behalf.
As the investigation into Joseph Froemming’s alleged misconduct continues, it serves as a reminder for investors to remain vigilant and proactive in monitoring their investments and the actions of their financial advisors. By staying informed and seeking the guidance of experienced professionals, investors can better protect themselves from the damaging effects of financial advisor malpractice.
