Michael Breard, a broker and investment advisor associated with Cetera Advisor Networks LLC, is currently facing allegations of unsuitable investments made on behalf of a customer in 2014 and 2015. The customer has filed a dispute, claiming that the investments, which involved real estate securities, were not aligned with their investment objectives and risk tolerance. As of February 8, 2024, the case is still pending resolution.
The allegations against Michael Breard raise concerns about the suitability of investments recommended to clients. FINRA Rule 2111, known as the “Suitability Rule,” requires brokers and investment advisors to have a reasonable basis for believing 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.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Michael Breard and Cetera Advisor Networks LLC. The firm, with over 50 years of experience and a 98% success rate, is offering free consultations to clients who may have suffered losses due to unsuitable investments recommended by Breard.
Understanding Unsuitable Investments and FINRA Rule 2111
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Unsuitable investments occur when a broker or investment advisor recommends a security or investment strategy that does not align with the client’s investment profile. FINRA Rule 2111, the “Suitability Rule,” mandates that financial professionals have a reasonable basis for believing that their recommendations are suitable for the customer.
To determine suitability, brokers and advisors must consider the following factors:
- Age
- Financial situation
- Investment objectives
- Risk tolerance
When a broker or advisor fails to adhere to FINRA Rule 2111, they may be held liable for any losses incurred by the client as a result of the unsuitable investments. Investopedia defines unsuitable investments as those that do not align with an investor’s financial goals, risk tolerance, or investment timeline.
The Impact on Investors
Unsuitable investments can have a significant impact on investors, leading to substantial financial losses. When a broker or advisor recommends investments that do not align with the client’s risk tolerance or investment objectives, the client’s portfolio may suffer losses that could have been avoided with suitable recommendations.
Investors who have experienced losses due to unsuitable investments may be able to recover damages through FINRA arbitration. FINRA arbitration is a dispute resolution process that allows investors to seek compensation for losses caused by broker misconduct or negligence.
Seeking Legal Assistance for Investment Losses
Haselkorn & Thibaut is committed to helping investors who have suffered losses due to unsuitable investments recommended by their brokers or investment advisors. With a proven track record of success and a 98% success rate, the firm has recovered millions of dollars for clients nationwide.
Investors who believe they may have been victims of unsuitable investments can contact Haselkorn & Thibaut for a free consultation by calling their toll-free number, 1-888-885-7162 . The firm operates on a “No Recovery, No Fee” basis, meaning clients only pay if a recovery is secured on their behalf.
Red Flags for Financial Advisor Malpractice
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Recommendations that do not align with the client’s risk tolerance or investment objectives
- Lack of diversification in the client’s portfolio
- Excessive trading or churning of the client’s account
- Failure to disclose material information about recommended investments
If an investor suspects that their broker or investment advisor has engaged in malpractice, they should contact a qualified investment fraud attorney to discuss their legal options.
For more information about Michael Breard‘s disclosure history, investors can access his FINRA BrokerCheck report.
Haselkorn & Thibaut is dedicated to protecting the rights of investors and holding negligent or fraudulent financial professionals accountable. With offices conveniently located in Florida, New York, North Carolina, Arizona, and Texas, the firm is well-positioned to serve clients nationwide. Investors who have suffered losses due to unsuitable investments are encouraged to contact Haselkorn & Thibaut for a free consultation to discuss their legal options.
