Matthew Wilkes, a former financial advisor at Trustfirst, is facing allegations of recommending unsuitable premium-financed life insurance policies and failing to properly explain their risks to clients. The claimants also allege that Wilkes later made inappropriate recommendations to change insurance providers.
According to Wilkes’ FINRA BrokerCheck report, the customer dispute was filed on January 12, 2024, and is currently pending. The specific damages sought by the claimants have not been disclosed.
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 Matthew Wilkes and Trustfirst. The firm encourages any clients who have suffered losses due to Wilkes’ alleged misconduct to contact them for a free consultation at 1-888-628-5590.
Understanding Premium-Financed Life Insurance and FINRA Rules
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Premium-financed life insurance is a complex financial product that involves borrowing money to pay for life insurance premiums. While this approach can offer potential benefits, such as lower out-of-pocket costs and the ability to obtain a larger death benefit, it also carries significant risks.
FINRA Rule 2111 requires financial advisors to have a reasonable basis to believe that their recommendations are suitable for their clients based on factors such as the client’s financial situation, risk tolerance, and investment objectives. Additionally, FINRA Rule 2210 mandates that communications with the public, including those related to complex products like premium-financed life insurance, must be fair, balanced, and not misleading.
If a financial advisor fails to adhere to these rules and their client suffers losses as a result, the advisor may be held liable for those losses through a FINRA arbitration claim. Investment fraud and bad advice from financial advisors can have devastating consequences for investors, leading to significant financial losses and emotional distress.
The Importance of Suitable Recommendations for Investors
Investors rely on their financial advisors to provide guidance and recommendations that align with their financial goals and risk tolerance. When an advisor recommends unsuitable products or fails to properly explain the risks associated with a particular investment or insurance policy, it can have severe consequences for the investor.
Unsuitable recommendations can lead to significant financial losses, jeopardizing an investor’s retirement savings, estate planning goals, or overall financial well-being. Moreover, the emotional stress and frustration resulting from such losses can be devastating.
It is crucial for investors to work with financial advisors who prioritize their clients’ best interests and provide transparent, comprehensive information about the products they recommend. By doing so, investors can make informed decisions and protect their financial future.
Recognizing Red Flags and Seeking Help for Financial Advisor Misconduct
Investors should be aware of potential red flags that may indicate financial advisor misconduct, such as:
- Recommending products that seem overly complex or unsuitable for the investor’s needs
- Failing to provide clear explanations of the risks and potential drawbacks of a recommended product
- Pressuring investors to make quick decisions or discouraging them from seeking second opinions
- Inconsistencies between the advisor’s verbal representations and written documents
If an investor suspects that their financial advisor has engaged in misconduct and they have suffered losses as a result, they may be able to recover those losses through a FINRA arbitration claim. It is essential to consult with an experienced investment fraud attorney who can evaluate the case and guide them through the process.
Haselkorn & Thibaut: Advocates for Investors
Haselkorn & Thibaut has over 50 years of combined experience in representing investors who have fallen victim to financial advisor misconduct. With a 98% success rate and a “No Recovery, No Fee” policy, the firm has a proven track record of helping clients recover their losses.
Investors who have suffered losses due to Matthew Wilkes‘ alleged misconduct at Trustfirst are encouraged to contact Haselkorn & Thibaut for a free consultation at 1-888-628-5590. The firm’s experienced attorneys will review the case and advise on the best course of action to pursue recovery of losses through FINRA arbitration.
