Janet Doherty, a former broker and investment advisor with Cetera Advisors LLC, is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, for allegedly transferring funds from clients’ fixed annuities to a variable annuity without proper authorization. The customer dispute, which was filed on January 11, 2024, and is currently pending, alleges that Doherty made unauthorized transfers of funds from the client’s fixed annuities to a variable annuity product.
According to FINRA BrokerCheck, Doherty was registered with Cetera Advisors LLC (CRD# 10299) in New York from February 12, 2024, to March 22, 2024. The client is seeking damages of $500,000 in this pending case, and the specific annuity products involved are fixed and variable annuities.
Haselkorn & Thibaut, a law firm with over 50 years of combined experience and a 98% success rate in handling investment fraud cases, is currently offering free consultations to clients who may have suffered losses due to Doherty’s alleged misconduct. The firm operates on a contingency fee basis, meaning clients pay no fees unless a recovery is secured.
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 cases going unreported. It is crucial for investors to be vigilant and thoroughly research their financial advisors and investments to minimize the risk of falling victim to fraudulent activities.
Understanding Unauthorized Transactions and FINRA Rule 2010
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Unauthorized transactions occur when a broker or investment advisor makes trades or transfers funds in a client’s account without obtaining proper consent. This violates FINRA Rule 2010, which requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade.
In the case of Janet Doherty, the allegation suggests that she transferred funds from fixed annuities to a variable annuity without the client’s approval. Fixed annuities provide a guaranteed income stream, while variable annuities invest in subaccounts with varying levels of risk and potential returns. Transferring funds between these products without client consent can significantly impact the client’s financial situation and risk exposure.
The Importance of Suitability in Investment Recommendations
FINRA Rule 2111 requires brokers and investment advisors to have a reasonable basis for believing that their investment recommendations are suitable for the client based on factors such as the client’s financial situation, risk tolerance, and investment objectives. Unauthorized transactions, such as those alleged in Doherty’s case, not only violate the client’s trust but may also result in unsuitable investments that can cause substantial financial harm.
Protecting Investors’ Rights and Recovering Losses
Investors who have suffered losses due to unauthorized transactions or other forms of investment fraud have the right to seek recovery through FINRA arbitration. This process allows investors to present their case before a neutral panel of arbitrators who have the authority to award damages if wrongdoing is found.
Haselkorn & Thibaut has extensive experience representing investors in FINRA arbitration proceedings and has recovered millions of dollars on behalf of their clients. The firm’s attorneys thoroughly investigate each case, gather evidence, and present compelling arguments to help clients secure the compensation they deserve.
Recognizing Red Flags and Seeking Help
Investors should be vigilant in monitoring their accounts and be aware of red flags that may indicate unauthorized transactions or other forms of investment fraud. These warning signs include:
- Unexpected changes in account balances or holdings
- Trades or transfers that were not discussed or approved
- Inconsistencies between verbal communications and account statements
- Excessive trading or churning of accounts to generate commissions
If investors suspect that they have been the victim of investment fraud or unauthorized transactions, they should promptly contact an experienced investment fraud attorney. Haselkorn & Thibaut offers free consultations to help investors understand their rights and explore their options for recovery.
Seeking Justice and Financial Recovery
The allegations against Janet Doherty serve as a reminder of the importance of working with trusted and ethical financial professionals. When brokers or investment advisors breach this trust and engage in unauthorized transactions or other forms of misconduct, investors have the right to hold them accountable and seek financial recovery.
Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, is committed to helping investors nationwide fight back against investment fraud. With their extensive experience, successful track record, and commitment to client service, the firm’s attorneys are well-positioned to guide investors through the FINRA arbitration process and work tirelessly to help them recover their losses.
Investors who believe they may have been affected by Janet Doherty’s alleged misconduct or any other form of investment fraud are encouraged to contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-628-5590. With their “No Recovery, No Fee” policy, investors can pursue justice and financial recovery without upfront costs.
