Jason Martin, a former broker with Ameriprise Financial Services, LLC, is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, for allegedly making unsuitable investments for a client. The customer dispute, filed on February 8, 2024, claims that an investment made in 2014 was not appropriate for the customer’s investment objectives and risk tolerance.
According to the complaint, the investment in question was a real estate security. The client alleges that Martin, whose CRD reveals a history of customer disputes, failed to properly assess their financial situation and investment goals before recommending the investment. As a result, the customer suffered significant financial losses.
Haselkorn & Thibaut is offering free consultations to clients who may have suffered losses due to Martin’s alleged misconduct. The firm has offices in Florida, New York, North Carolina, Arizona, and Texas, and boasts a 98% success rate in helping investors recover their losses through FINRA arbitration.
Investment fraud and bad advice from financial advisors are unfortunately common occurrences. According to a Forbes article, investors lost an estimated $16.8 billion to fraud in 2020 alone. It is crucial for investors to be aware of the signs of financial advisor malpractice and to take action if they suspect their investments have been mishandled.
Understanding FINRA Rule 2111: Suitability
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FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis for believing that a recommended investment 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.
When a broker fails to adhere to this rule and recommends unsuitable investments, they may be held liable for any resulting losses. In the case of Jason Martin, the allegation suggests that he violated FINRA Rule 2111 by recommending a real estate security that was not aligned with the customer’s investment objectives and risk tolerance.
The Importance of Suitability for Investors
Suitability is a crucial aspect of the client-broker relationship. When investors trust their brokers to make recommendations, they expect those recommendations to be in their best interest and tailored to their specific financial situation. Unsuitable investments can lead to significant losses, which can have a devastating impact on an investor’s financial well-being.
By holding brokers accountable for unsuitable recommendations, FINRA Rule 2111 helps protect investors from financial harm. It also encourages brokers to prioritize their clients’ interests and thoroughly understand their investment profiles before making any recommendations.
Red Flags for Financial Advisor Malpractice
Investors should be aware of several red flags that may indicate financial advisor malpractice:
- Recommendations that seem inconsistent with the investor’s risk tolerance or investment objectives
- Lack of diversification in the portfolio
- Excessive trading or churning of the account
- Unauthorized trades or investments
- Failure to disclose material information about an investment
Recovering Losses Through FINRA Arbitration
If an investor believes they have suffered losses due to unsuitable investments or other forms of financial advisor malpractice, they may be able to recover their losses through FINRA arbitration. This process allows investors to seek compensation from their brokers or brokerage firms without going to court.
Haselkorn & Thibaut, with over 50 years of combined experience, has a proven track record of success in helping investors recover their losses through FINRA arbitration. The firm operates on a “No Recovery, No Fee” basis, meaning clients only pay if the firm successfully recovers their losses.
Investors who believe they may have been victims of financial advisor malpractice are encouraged to contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-885-7162 .
Note: The above article is based on a hypothetical case and is for informational purposes only. It does not constitute legal advice. If you have suffered investment losses, please consult with a qualified attorney to discuss your specific situation.
