Investment fraud is a serious issue that can have devastating financial consequences for investors. One such case currently under investigation involves a customer dispute against Carlo Freese, a representative of Charles Schwab & Co., Inc. The allegation, which is still pending, was filed on 9/22/2023 and claims that Freese did not follow specific investment instructions provided by the client in June 2023, leading to a loss of $24,776.31.
The Seriousness of the Allegation and Case Information
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The allegation against Carlo Freese is a serious matter. It is alleged that Freese, who was acting as a broker and investment advisor for Charles Schwab & Co., Inc., did not follow the specific investment instructions provided by the client. This failure allegedly resulted in a significant financial loss for the client, amounting to $24,776.31.
The case is still pending and is being investigated by Haselkorn & Thibaut, a national investment fraud law firm with an impressive 98% success rate. With over 50 years of experience, Haselkorn & Thibaut have successfully recovered financial losses for investors across the country.
Explanation in Simple Terms and the FINRA Rule
In simple terms, the client alleges that Freese did not adhere to his specific investment instructions. This is a violation of the Financial Industry Regulatory Authority’s (FINRA) Rule 2111, which requires brokers to have a reasonable basis to believe that a transaction or investment strategy involving securities that they recommend is suitable for the customer.
If proven, this violation can result in severe penalties for both Freese and Charles Schwab & Co., Inc., including fines, suspensions, or even expulsion from the industry.
Why It Matters for Investors
Investors trust their brokers and investment advisors to act in their best interests. When this trust is violated, it can lead to significant financial losses. In this case, the client alleges a loss of $24,776.31 due to Freese’s alleged failure to follow specific investment instructions.
Such cases underscore the importance of investor vigilance and the need for robust regulatory oversight. They also highlight the critical role that law firms like Haselkorn & Thibaut play in helping investors recover their losses.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
Red flags for financial advisor malpractice can include unauthorized transactions, failure to follow client instructions, and providing unsuitable investment recommendations. If you notice any of these signs, it’s crucial to take immediate action.
Haselkorn & Thibaut can help. With offices in Florida, New York, North Carolina, Arizona, and Texas, they offer free consultations to clients and operate on a “No Recovery, No Fee” policy. Through FINRA Arbitration, Haselkorn & Thibaut can help investors recover their losses.
If you suspect that you have been a victim of investment fraud, don’t hesitate to contact Haselkorn & Thibaut at their toll-free consultation number, 1-800-856-3352.
In conclusion, investment fraud is a serious issue that can lead to significant financial losses. However, with vigilance, regulatory oversight, and the help of experienced law firms like Haselkorn & Thibaut, investors can protect themselves and recover their losses.