Joshua Swartz, a registered investment advisor, is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, following allegations of misconduct. The firm, with offices in Florida, New York, North Carolina, Arizona, and Texas, is offering free consultations to clients who may have suffered losses due to Swartz’s actions.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, financial fraud costs Americans billions of dollars each year, with many cases going unreported. It is crucial for investors to be vigilant and seek help if they suspect any misconduct from their financial advisors.
Allegations Against Joshua Swartz
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According to a recent customer dispute, a client alleged that she had instructed Joshua Swartz to sell shares of Alphabet at no less than $140.00 per share. However, Swartz disputes this claim, maintaining that there was never an agreement to sell the shares at any specified price. Instead, he asserts that the agreement with the customer was to sell the shares immediately after the client signed the Investment Policy Statement (IPS).
The IPS contained a written plan to sell shares of Alphabet and use a portion of the proceeds to purchase municipal bonds, which Swartz executed upon the client signing the document. The Alphabet shares were ultimately sold at prices between $132 and $133. The customer requested compensation for the difference in price between the actual sale price and the alleged limit price of $140, amounting to approximately $73,500.
Investigation and Resolution
The firm’s Chief Compliance Officer (CCO) conducted an investigation into the customer complaint, reviewing all written documentation, including emails. The written evidence supports Swartz’s statement that there was no agreed-upon price at which to sell the shares of Alphabet. The investigation concluded that Swartz had followed the written plan outlined in the IPS. As a result, the firm closed the matter without action and denied the customer’s request for compensation.
According to FINRA Rule 2111, known as the “Suitability Rule,” brokers and investment advisors must 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.
Importance for Investors
This case highlights the significance of clear communication and documentation between investors and their financial advisors. Misunderstandings or disagreements regarding investment strategies, like the alleged price limit in this case, can lead to potential losses and disputes.
Protecting Your Investments
Investors should always ensure that their investment objectives and risk tolerance are clearly communicated to their financial advisor and that any agreements or instructions are documented in writing. Regular reviews of investment portfolios and open communication with advisors can help identify any discrepancies or concerns early on.
Recovering Losses Through FINRA Arbitration
If an investor believes they have suffered losses due to the misconduct or negligence of their financial advisor, they may be able to recover these losses through FINRA arbitration. Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped numerous investors recover losses through this process.
Seeking Legal Assistance
Investors who have concerns about their investments with Joshua Swartz or any other financial advisor should consider seeking legal assistance. Haselkorn & Thibaut offers free consultations to help investors assess their case and determine the best course of action. Their “No Recovery, No Fee” policy ensures that clients only pay if a successful recovery is made.
To learn more about Joshua Swartz and his background, investors can access his FINRA BrokerCheck report using his CRD number: 7007952.
For a free consultation with the experienced investment fraud attorneys at Haselkorn & Thibaut, call their toll-free number at 1-888-885-7162 .
