Michael Whitaker, a broker and investment advisor associated with Newbridge Securities Corporation, is currently facing allegations of breach of contract, common law fraud, and negligence. The customer dispute, filed on February 5, 2024, is currently pending resolution and involves investments in GWG Alternatives.
According to the information available on FINRA’s BrokerCheck (CRD #1739854), Whitaker has been registered with Newbridge Securities Corporation (CRD #104065) in Florida since December 1, 2009. The allegations against him are serious and could potentially lead to significant consequences for both the advisor and the firm.
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 Michael Whitaker and Newbridge Securities Corporation. The firm encourages any clients who have suffered losses due to their investments with Whitaker to contact them for a free consultation by calling their toll-free number, 1-888-885-7162 .
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with many victims being elderly or inexperienced investors.
Understanding the allegations and FINRA rules
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The allegations against Michael Whitaker include breach of contract, common law fraud, and negligence. Breach of contract occurs when an advisor fails to adhere to the terms of an agreement with their client, while common law fraud involves intentional misrepresentation or deception. Negligence, on the other hand, refers to an advisor’s failure to exercise reasonable care in managing their client’s investments.
FINRA, the Financial Industry Regulatory Authority, has established rules and regulations to protect investors and maintain the integrity of the financial markets. One such rule, FINRA Rule 2111, known as the “suitability rule,” requires brokers and investment advisors to have a reasonable basis for believing that their investment recommendations are suitable for their clients based on factors such as the client’s financial situation, investment objectives, and risk tolerance.
If the allegations against Whitaker are proven, it could indicate violations of FINRA rules and a breach of the trust placed in him by his clients.
The importance for investors
The allegations against Michael Whitaker serve as a stark reminder of the importance of due diligence when selecting a financial advisor. Investors must be vigilant in monitoring their investments and the actions of their advisors to ensure that their interests are being protected.
When an advisor breaches their duties or engages in fraudulent or negligent behavior, the consequences for investors can be severe. Losses can mount quickly, and the emotional and financial toll can be devastating.
Investors who have suffered losses due to the misconduct of their financial advisors have options for seeking recovery. FINRA arbitration provides a forum for resolving disputes between investors and their brokers or investment advisors, and experienced investment fraud attorneys can help navigate the process and fight for the compensation investors deserve.
Recognizing red flags and seeking help
Investors should be aware of potential red flags that may indicate financial advisor malpractice or misconduct. These can include:
- Unauthorized or excessive trading in client accounts
- Misrepresentation or omission of material information about investments
- Failure to disclose conflicts of interest
- Recommending unsuitable investments based on a client’s risk profile and objectives
If investors suspect that they have been the victim of financial advisor malpractice, it is crucial to act quickly to protect their rights and seek the assistance of experienced legal counsel.
Haselkorn & Thibaut, with their extensive experience and impressive 98% success rate, has helped countless investors recover losses through FINRA arbitration. The firm operates on a “No Recovery, No Fee” basis, meaning that clients pay nothing unless a recovery is secured on their behalf.
For investors who have suffered losses due to the alleged misconduct of Michael Whitaker or any other financial advisor, reaching out to Haselkorn & Thibaut for a free consultation can be the first step toward securing the justice and compensation they deserve.
