Joseph Beam (CRD# 5407778), a financial advisor based in Flat Rock, North Carolina, has recently come under scrutiny due to a series of investor complaints and lawsuits. Beam, who has 15 years of experience in the securities industry, was previously registered with SunTrust Investment Services and is the owner of Beam & Associates Financial Advisors. However, he currently holds no broker license with any Financial Industry Regulatory Authority (FINRA) member firm.
Allegations of Misconduct
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Beam is facing allegations of misconduct related to investments in GWG Holdings. At least two clients have been listed as creditors for substantial investments in this company. The complaints allege contract and fiduciary duty breaches, with damages ranging from $80,000 to $160,000.
In addition to these allegations, Beam is also facing complaints related to suitability. He is named in three disputes involving breaches of contract, misrepresentation, and unsuitable investments. The pending disputes seek damages of $125,000, $80,000, and $160,000, respectively.
FINRA Rules and Regulations
Brokers like Beam are held to high standards under FINRA rules. These include Rule 2010, which emphasizes commercial honor, Rule 2111, which requires tailored recommendations based on client profiles; and Rule 2020, which prohibits deceptive practices. If a broker fails to adhere to these standards, they can face disciplinary action from FINRA and may be held liable for any losses incurred by their clients.
Legal Recourse for Investors
Investors who have suffered losses due to the alleged misconduct of Beam have several options for seeking recovery. They can file a complaint with FINRA, which has the power to investigate brokers and enforce disciplinary actions. They can also seek legal representation from law firms like Haselkorn & Thibaut, which specialize in investment fraud and have a proven track record of recovering losses for investors.
The Role of Capital Investment Group, Inc.
Beam was registered with Capital Investment Group, Inc. in 2013. As such, the company may be responsible for supervising Beam’s activities during registration. If it is found that Capital Investment Group, Inc. failed to supervise Beam adequately, it could also be held liable for investor losses.
In conclusion, the allegations against Joseph Beam highlight the importance of investor vigilance and the need for robust oversight in the financial industry. It also underscores the value of legal recourse for investors who have suffered losses due to broker misconduct.
