In a recent development, Jack Thacker, a broker and investment advisor associated with Realta Equities, Inc. (CRD 23769) in Virginia, has been named in a customer dispute filed on February 5, 2024. The claimant alleges that Thacker made unsuitable investment recommendations, particularly in alternative investment products. The damage amount requested by the claimant has not been disclosed, and the dispute is currently pending resolution.
Thacker, who has been registered with Realta Equities, Inc. since September 20, 2023, denies the claims made against him. In his broker comment, he states, “I was neither the broker nor the direct supervisor for the activities at issue. I have been named in these false claims based on my previous position as an officer at a former firm. I deny all the claims against me as they are false, and I will be seeking expungement of this complaint from my license.”
The customer dispute is detailed in Thacker’s BrokerCheck report, which is maintained by the Financial Industry Regulatory Authority (FINRA). Thacker’s CRD number is 2754773.
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 seniors or those with limited financial knowledge.
Understanding Unsuitable Investment Recommendations and FINRA Rule 2111
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Unsuitable investment recommendations occur when a broker or investment advisor recommends an investment that is not appropriate for a client’s financial situation, risk tolerance, or investment objectives. FINRA Rule 2111, known as the “Suitability Rule,” 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.
The investment profile includes factors such as the customer’s age, financial situation, investment experience, investment objectives, liquidity needs, risk tolerance, and any other relevant information the customer may disclose to the broker. Brokers must also ensure that a series of recommended transactions, even if suitable when viewed in isolation, are not excessive and unsuitable for the customer when taken together.
The Importance of Suitable Investment Recommendations for Investors
Suitable investment recommendations are crucial for investors because they help ensure that their investments align with their financial goals and risk tolerance. When brokers or investment advisors recommend unsuitable investments, investors may face significant financial losses, as well as emotional distress and lost opportunities.
Unsuitable investments can lead to portfolio underperformance, excessive fees, and unnecessary risk exposure. In some cases, investors may find themselves locked into illiquid or complex investments that are difficult to understand or exit, further compounding their losses.
Recognizing Red Flags and Seeking Help for Investment Losses
Investors should be aware of red flags that may indicate financial advisor malpractice or unsuitable investment recommendations. These red flags include:
- Recommendations that do not align with the investor’s stated goals, risk tolerance, or financial situation
- Excessive trading or churning of the investor’s account
- Lack of diversification in the investment portfolio
- Pressure to invest in complex, illiquid, or high-risk products
- Failure to disclose material information about investments or conflicts of interest
If an investor suspects that they have been the victim of unsuitable investment recommendations or other forms of financial advisor misconduct, they may be able to recover their losses through FINRA arbitration. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Jack Thacker and Realta Equities, Inc. in relation to the recent customer dispute.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. The firm operates on a contingency fee basis, meaning they charge no fees unless they secure a recovery for their clients.
Investors who have suffered losses due to unsuitable investment recommendations or other forms of financial advisor misconduct are encouraged to contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-885-7162 .
