Mark Bloom, a broker and investment advisor with Avantax Investment Services, Inc., is facing a serious allegation from a customer who claims to have incurred a loss despite relatively stable market conditions. The case, which was settled on February 16, 2024, raises concerns among investors about the potential for financial advisor malpractice and the importance of understanding the risks associated with complex investment products like structured notes.
Investment fraud and bad advice from financial advisors are unfortunately common occurrences in the financial industry. According to a report by Forbes, investment fraud costs investors billions of dollars each year, with the elderly being particularly vulnerable to fraudulent schemes and unsuitable investment recommendations.
The Seriousness of the Allegation and Its Impact on Investors
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The allegation against Mark Bloom is particularly concerning because the customer claims to have suffered a loss even though market conditions were relatively stable. This suggests that the loss may have been due to inappropriate investment advice, misrepresentation of risks, or a failure to properly explain the complexities of the structured notes in question.
For investors, this case highlights the importance of thoroughly understanding the risks and potential downsides of any investment product, especially those that are complex or unfamiliar. It also underscores the need for financial advisors to provide clear, accurate, and comprehensive information to their clients, ensuring that they can make informed decisions about their investments.
Understanding the FINRA Rule and Its Implications
The Financial Industry Regulatory Authority (FINRA) oversees the conduct of financial advisors and enforces rules designed to protect investors. In this case, the allegation against Mark Bloom may involve violations of FINRA Rule 2111, known as the “Suitability Rule.” This rule requires financial advisors to have a reasonable basis for believing that an investment recommendation is suitable for a particular customer based on their investment profile, including their age, financial situation, investment objectives, and risk tolerance.
If a financial advisor recommends an unsuitable investment or fails to properly explain the risks associated with a particular product, they may be held liable for any resulting losses. Investors who believe they have been the victim of financial advisor malpractice can file a complaint with FINRA and seek to recover their losses through arbitration.
The Importance of Investor Awareness and Protection
The case against Mark Bloom serves as a reminder of the critical role that investor awareness and protection play in the financial industry. By staying informed about the risks and complexities of different investment products, investors can make better decisions about how to allocate their funds and protect their financial well-being.
Additionally, working with a reputable and experienced financial advisor who prioritizes transparency, communication, and client education can help investors navigate the complex world of investing with greater confidence and success. However, even with a trusted advisor, it is essential for investors to remain vigilant and to promptly raise concerns if they suspect any wrongdoing or negligence.
Red Flags for Financial Advisor Malpractice and Recovering Losses
Investors should be aware of several red flags that may indicate financial advisor malpractice, including:
- Unexplained or inconsistent investment performance
- Lack of transparency or communication from the advisor
- Unsuitable investment recommendations based on the investor’s profile
- Failure to properly explain risks or provide necessary disclosures
If an investor suspects malpractice, they should document their concerns, gather relevant evidence, and consider seeking legal counsel. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Mark Bloom and Avantax Investment Services, Inc. They offer free consultations to clients and have a proven track record, with over 50 years of experience, successful financial recoveries for investors, and an impressive 98% success rate.
Investors who have suffered losses due to financial advisor malpractice may be able to recover their losses through FINRA arbitration. With their “No Recovery, No Fee” policy and a toll-free consultation number (1-888-885-7162 ), Haselkorn & Thibaut is committed to helping investors protect their rights and seek the compensation they deserve.
As the case against Mark Bloom unfolds, it serves as an important reminder for investors to remain vigilant, stay informed, and take prompt action if they suspect any wrongdoing or negligence in their financial dealings. By working with experienced professionals and staying attuned to potential red flags, investors can better protect their financial futures and hold accountable those who violate their trust.
