Thomas Cavaliere, a broker and investment advisor associated with LPL Financial LLC (CRD 6413), is currently facing allegations of unsuitable investment recommendations made to customers during the period of 2013-2018. The case, filed on January 25, 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.
The Allegations Against Thomas Cavaliere
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According to the disclosure, customers have alleged that Thomas Cavaliere made unsuitable investment recommendations in real estate securities during the time period of 2013-2018. The specific details of the investments and the extent of the alleged damages have not been disclosed. Investment fraud and bad advice from financial advisors can have devastating consequences for investors, leading to significant financial losses and shattered trust in the financial industry.
Thomas Cavaliere’s Response to the Allegations
In response to the allegations, Thomas Cavaliere has denied any wrongdoing, asserting that the customers’ claims are “completely without merit.” He maintains that the features, benefits, and risks of the recommended investments were fully discussed with and acknowledged by the clients prior to purchase. Additionally, he states that the clients received, read, and acknowledged the suitability and understanding of the investments by signing applicable disclosure forms, which detailed the potential for liquidity restrictions and investment losses.
The Role of FINRA in Regulating Broker Conduct
The Financial Industry Regulatory Authority (FINRA) is responsible for regulating the conduct of brokers and ensuring investor protection. FINRA Rule 2111 requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as the customer’s age, financial situation, investment objectives, and risk tolerance.
The Importance of Suitability in Investment Recommendations
Suitability is a crucial aspect of investment recommendations, as it ensures that the investments align with the customer’s financial goals and risk tolerance. When a broker fails to make suitable recommendations, it can lead to significant losses for the investor. According to a Bloomberg article, the U.S. Securities and Exchange Commission (SEC) has previously charged financial advisors for making unsuitable investment recommendations, highlighting the severity of such misconduct.
Why This Case Matters for Investors
The allegations against Thomas Cavaliere serve as a reminder of the importance of working with a trustworthy and ethical financial advisor. Investors should be aware of their rights and the recourse available to them when they believe they have been victims of unsuitable investment recommendations.
Recovering Losses Through FINRA Arbitration
Investors who have suffered losses due to unsuitable investment recommendations may be able to recover their losses through FINRA arbitration. This process allows investors to seek compensation from their broker or brokerage firm for alleged misconduct.
Haselkorn & Thibaut: Advocating for Investors
Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has a proven track record of helping investors recover losses through FINRA arbitration. The firm operates on a “No Recovery, No Fee” basis, ensuring that clients can seek justice without added financial burden.
Red Flags for Financial Advisor Malpractice
Investors should be vigilant for red flags that may indicate financial advisor malpractice, such as:
- Lack of transparency regarding investment risks and fees
- Pressure to make quick investment decisions
- Investments that seem too good to be true
- Inconsistencies between the advisor’s recommendations and the investor’s goals and risk tolerance
Protecting Yourself as an Investor
To protect yourself from potential financial advisor malpractice, consider the following steps:
- Research your financial advisor’s background and disciplinary history
- Ask questions and seek clarification on any aspects of an investment that you do not understand
- Diversify your portfolio to minimize risk
- Regularly review your account statements and question any discrepancies
If you believe you have been the victim of unsuitable investment recommendations by Thomas Cavaliere or any other financial advisor, contact Haselkorn & Thibaut for a free consultation at 1-888-885-7162 .
