Investment fraud allegations are grave matters that require immediate attention and thorough investigation. One such allegation currently under investigation involves Lorraine Gallette, a financial advisor previously associated with COASTAL EQUITIES, INC. and MOLONEY SECURITIES CO., INC. (CRD 38535). The case, filed on 9/6/2023, is currently pending and involves a customer dispute over a claim of $236,000. The claimant alleges that Gallette failed to conduct reasonable and adequate due diligence on an offering and advised unsuitable investments. The investments in question fall under the category of “Alternative Investments”.
Understanding the Allegation in Simple Terms
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An allegation of this nature implies that the advisor, in this case, Lorraine Gallette, did not perform the necessary checks and research before advising the claimant to invest in a certain offering. Furthermore, the investments recommended were unsuitable for the investor, possibly due to their risk tolerance, financial goals, or other personal circumstances.
The FINRA Rule
The FINRA Rule 2111 requires that a firm or associated person have a reasonable basis to believe a recommended transaction or investment strategy is suitable for the customer. This is based on the information obtained through the reasonable diligence of the firm or associated person to ascertain the customer’s investment profile.
Why This Matters for Investors
Investors rely heavily on the advice and expertise of financial advisors. When the trust is violated through negligence or malpractice, it can result in significant financial losses. Moreover, it undermines investor confidence in financial advisors and the investment industry as a whole.
Investors must be aware of their rights and the recourse available to them in such situations. The FINRA CRD number 6192487 provides more details about the advisor and the case.
Red Flags for Financial Advisor Malpractice
Investors should be aware of certain red flags that may indicate potential financial advisor malpractice. These include frequent and unnecessary trading, recommending unsuitable investments, and failure to conduct due diligence. It is crucial to maintain open communication with your advisor and regularly review your portfolio.
Recovering Losses Through FINRA Arbitration
Investors who have suffered losses due to advisor malpractice can seek redress through FINRA Arbitration. This is a streamlined and cost-effective method to recover losses. Haselkorn & Thibaut, a national investment fraud law firm, is currently investigating the case involving Lorraine Gallette.
With offices in Florida, New York, North Carolina, Arizona, and Texas, Haselkorn & Thibaut has over 50 years of experience in dealing with investment fraud cases. They have a remarkable 98% success rate and have successfully recovered financial losses for numerous investors. They operate on a “No Recovery, No Fee” policy, which means clients do not pay unless they recover their losses.
Investors who believe they have been a victim of investment fraud or advisor malpractice can contact Haselkorn & Thibaut for a free consultation at their toll-free number, 1-800-856-3352.
