Gregory Gann, a broker and investment advisor associated with LPL Financial LLC, is currently facing allegations of unsuitable investment recommendations. According to the customer dispute filed on February 15, 2024, the customer alleges that an investment made in 2014, based on Gann’s advice, was unsuitable for their investment objectives and risk tolerance. The dispute is currently pending, and the damage amount requested has not been disclosed.
LPL Financial LLC, a registered broker-dealer and investment advisor firm, has been Gann’s employer since November 24, 2005. Gann has denied all allegations of wrongdoing, stating that the claim is without merit and that all recommendations made to the claimant were suitable and within their investment objectives. The product type involved in the dispute is listed as a real estate security.
The customer dispute against Gregory Gann is filed under his FINRA CRD number 2144505. As of the filing date, Gann remains registered as a broker and investment advisor with LPL Financial LLC in the state of Maryland, where he has been since November 24, 2005.
Understanding Unsuitable Investment Recommendations and FINRA Rule 2111
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Unsuitable investment recommendations occur when a financial advisor recommends an investment that does not align with a client’s investment objectives, risk tolerance, financial situation, or needs. FINRA Rule 2111, known as the “Suitability Rule,” requires that financial advisors have a reasonable basis to believe that their investment recommendations are suitable for their clients. According to a Forbes article, unsuitable investment advice is one of the most common forms of investment fraud.
To comply with FINRA Rule 2111, financial advisors must gather essential information about their clients, including their age, financial situation, investment experience, investment objectives, liquidity needs, and risk tolerance. Based on this information, advisors must make recommendations that are in the best interest of their clients.
The Importance of Suitability for Investors
Unsuitable investment recommendations can have severe consequences for investors, potentially leading to significant financial losses. When an advisor recommends an investment that does not match an investor’s risk tolerance or financial goals, the investor may be exposed to unnecessary risks or miss out on opportunities better suited to their needs.
Investors rely on the expertise and guidance of their financial advisors to make informed investment decisions. When advisors breach this trust by making unsuitable recommendations, investors may suffer not only financial losses but also emotional distress and a loss of confidence in the financial industry.
Recognizing Red Flags and Seeking Help
Investors should be aware of potential 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 sufficient time to review the risks and potential outcomes
- Lack of transparency or difficulty obtaining clear answers about recommended investments
- Investments that do not align with the investor’s stated goals, risk tolerance, or financial situation
If an investor believes they have suffered losses due to unsuitable investment recommendations, they may be able to recover their losses through FINRA arbitration. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Gregory Gann and LPL Financial LLC in relation to this customer dispute.
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 through FINRA arbitration. The firm operates on a contingency fee basis, meaning clients pay no fees unless a recovery is obtained.
Investors who have suffered losses due to unsuitable investment recommendations from Gregory Gann, LPL Financial LLC, or any other financial advisor are encouraged to contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-885-7162 .
