Merrill Lynch and one of its financial advisors, Robert Loring, are facing serious allegations of mishandling a client’s account. According to the client’s Power of Attorney (POA), the change to a wrap fee account in March 2021 was not in the client’s best interest. This allegation raises concerns about the advisor’s conduct and the potential impact on investors.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. A study by the U.S. Securities and Exchange Commission found that in 2020 alone, there were 715 enforcement actions related to investment fraud, resulting in over $4.68 billion in disgorgement and penalties.
The Seriousness of the Allegation and Its Impact on Investors
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The allegation against Robert Loring and Merrill Lynch is a grave matter that should not be taken lightly. When a client’s POA asserts that an account change was not in the client’s best interest, it suggests that the advisor may have acted against the client’s wishes or failed to consider their unique financial situation and goals.
For investors, such allegations can lead to significant financial losses and erode trust in their financial advisors and the institutions they represent. It is crucial for investors to be aware of these incidents and understand their rights when faced with potential misconduct.
Understanding the Allegation and FINRA Rules
In simple terms, the allegation suggests that Robert Loring may have moved the client’s assets into a wrap fee account without properly considering the client’s best interests. Wrap fee accounts typically charge a single, all-inclusive fee for investment advice, asset management, and trading costs. While these accounts can be suitable for some investors, they may not be appropriate for everyone.
The Financial Industry Regulatory Authority (FINRA) has specific rules in place to protect investors from misconduct. FINRA Rule 2111 requires financial advisors to recommend investments that are suitable for their clients based on factors such as their financial situation, investment objectives, and risk tolerance. If an advisor fails to adhere to this rule, they may face disciplinary action and be held liable for any resulting losses.
The Importance of Investor Awareness and Protection
Allegations like the one against Robert Loring and Merrill Lynch underscore the importance of investor awareness and protection. Investors must remain vigilant and actively monitor their accounts to ensure that their investments align with their goals and risk tolerance.
When selecting a financial advisor, investors should thoroughly research their background, including any disciplinary actions or customer complaints. FINRA’s BrokerCheck is a valuable resource for accessing this information and making informed decisions about working with a particular advisor or firm.
Red Flags and Recovering Losses Through FINRA Arbitration
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Unexplained changes to account types or investment strategies
- Lack of communication or transparency from the advisor
- Inconsistencies between the advisor’s recommendations and the client’s goals and risk tolerance
If an investor suspects misconduct or has suffered losses due to their advisor’s actions, they may be able to recover damages through FINRA arbitration. This process allows investors to seek compensation for losses caused by improper conduct without going through the traditional court system.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Robert Loring and Merrill Lynch in relation to this allegation. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration.
Investors who have suffered losses due to the actions of Robert Loring or Merrill Lynch are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm operates on a “No Recovery, No Fee” basis, meaning clients only pay if a recovery is made on their behalf. To discuss your case with an experienced investment fraud attorney, call Haselkorn & Thibaut‘s toll-free number at 1-888-885-7162 .
As the investigation into Robert Loring and Merrill Lynch continues, it is crucial for investors to stay informed and take action if they believe they have been victims of financial advisor misconduct. By working with experienced legal professionals and utilizing the FINRA arbitration process, investors can protect their rights and seek the compensation they deserve.
