Let’s cut to the chase. We’re here to talk about a serious allegation. The subject: Frank Martin, a broker and investment advisor. The allegation: failure to supervise and prevent excessive trading in customer accounts. The result: customers paying a whopping $663,463 in commissions, fees, and margin interest. But who’s investigating this? Haselkorn & Thibaut, a national investment fraud law firm, is on the case.
Investment Fraud Red Flags
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First things first, let’s break down the red flags of investment fraud. It’s a murky world, but there are tell-tale signs to look out for. High turnover and cost-to-equity ratios in customer accounts, for instance, can indicate excessive trading. Other red flags include frequent trading, in-and-out trading, and proceeds transactions. If these terms sound like Greek to you, don’t sweat it. They’re industry jargon for potentially unsuitable or excessive trading practices.
Another critical red flag is when an advisor signs off on daily trade blotters and periodic exception reports without conducting a reasonable review. This lack of due diligence can lead to the identification of numerous accounts being excessively traded. If these red flags aren’t investigated or escalated within the firm, customers can end up footing a hefty bill in commissions, fees, and margin interest.
The Allegation Against Martin
Now, let’s dive into the allegation against Frank Martin. The Financial Industry Regulatory Authority (FINRA) found that Martin, while working for Arive Capital Markets and LPL Financial LLC, failed to supervise registered representatives at his member firm. Despite clear signs of excessive trading, Martin allegedly did not investigate these red flags. The result? Customers shelled out over half a million dollars in unnecessary costs. Martin has since consented to the sanction without admitting or denying the findings.
What Can FINRA Arbitration Do?
Here’s the silver lining. FINRA Arbitration can help investors recover losses. It’s a process that resolves disputes between investors and brokers, and it can be a lifeline for those who’ve lost money due to investment fraud.
How Haselkorn & Thibaut Can Help
Enter Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas. With over 50 years of experience and a 98% success rate, they’ve got a track record that speaks for itself. They’re currently investigating the allegations against Martin and offering free consultations to affected clients. Their “No Recovery, No Fee” policy means you’ve got nothing to lose. Give them a call at 1-800-856-3352 and let them help you recover your losses.
So there you have it. Investment fraud is a serious business, but with the right knowledge and the right help, you can fight back. Remember, knowledge is power, and in this case, it could also mean the difference between keeping or losing your hard-earned money.
