Financial advisor John Freiburger, associated with Kestra Investment Services, LLC, is currently facing a serious customer dispute allegation. The claimants allege that Freiburger made an unsuitable recommendation, which has led to significant financial losses. As an investor, it is crucial to understand the gravity of this situation and how it may impact your investments.
According to a study by the Association of Certified Fraud Examiners, investment fraud costs investors billions of dollars every year. Bad advice from financial advisors can be a major contributor to these losses, and it is essential for investors to be aware of the risks and take steps to protect themselves.
The Allegation’s Severity and Its Impact on Investors
Table of Contents
The pending customer dispute against John Freiburger raises concerns about the suitability of his investment recommendations. Unsuitable recommendations can result in substantial financial losses for investors, as they may be exposed to unnecessary risks or placed in investments that do not align with their goals and risk tolerance.
According to Freiburger’s FINRA CRD (Central Registration Depository) report, the alleged unsuitable recommendation involves Direct Investment DPP & LP Interests. These types of investments can be complex and may not be suitable for all investors.
Understanding the FINRA Rule on Suitability
FINRA Rule 2111 requires financial advisors 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. This profile includes factors such as age, financial situation, investment objectives, and risk tolerance.
When a financial advisor fails to adhere to this rule and makes unsuitable recommendations, it can be considered a form of investment fraud or negligence. Investors who suffer losses due to unsuitable recommendations may have grounds to seek recovery through FINRA arbitration.
The Importance of Suitability for Investors
Suitability is a crucial aspect of the client-advisor relationship. When you entrust your hard-earned money to a financial advisor, you expect them to act in your best interests and provide recommendations that align with your unique financial situation and goals.
Unsuitable recommendations can have devastating consequences, causing investors to lose a significant portion of their savings or retirement funds. It is essential for investors to be aware of their rights and to take action if they suspect that their financial advisor has acted improperly.
Red Flags for Financial Advisor Malpractice
Investors should be vigilant for red flags that may indicate financial advisor malpractice, such as:
- Recommendations that seem too good to be true or promise guaranteed returns
- Pressure to make quick investment decisions without adequate time to review the risks and potential consequences
- Lack of transparency or difficulty obtaining clear answers to questions about investments
- Investments that do not align with your stated risk tolerance or financial goals
Recovering Losses Through FINRA Arbitration
If you have suffered investment losses due to unsuitable recommendations or other forms of financial advisor misconduct, you may be able to recover your losses through FINRA arbitration. This process allows investors to seek damages from their financial advisor and the firm they are associated with.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating John Freiburger and Kestra Investment Services, LLC. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses.
Free Consultation and “No Recovery, No Fee” Policy
If you have invested with John Freiburger or Kestra Investment Services, LLC and suspect that you may have been the victim of unsuitable recommendations or other forms of investment fraud, contact Haselkorn & Thibaut for a free consultation. Their toll-free number is 1-888-885-7162 , and they offer a “No Recovery, No Fee” policy, meaning you only pay if they successfully recover your losses.
Remember, it is crucial to act quickly if you suspect investment fraud or unsuitable recommendations, as there may be time limits on your ability to recover your losses. Don’t hesitate to seek the guidance and support of experienced investment fraud attorneys to protect your rights and pursue the compensation you deserve.
