In a recent development, a serious allegation has been made against Michael Hensley, a former broker and investment advisor at Triad Advisors LLC and Triad Advisors, Inc. (CRD 25803). The case, filed under the reference number 23-02226, raises concerns about the lack of fair and balanced disclosures regarding the high-risk nature of non-traded products. The alleged damages amount to a staggering $100,000, which could have significant implications for investors.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg report, the year 2020 saw a record number of investment fraud cases, with the SEC reporting a 52% increase compared to the previous year. This highlights the importance of investors being vigilant and working with reputable financial advisors who prioritize their clients’ best interests.
The Gravity of the Allegation
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The allegation against Michael Hensley revolves around the sale of non-traded products, specifically real estate securities. Non-traded products are often associated with higher risks compared to traditional investments, and it is crucial for financial advisors to provide comprehensive and transparent disclosures about these risks to their clients. Failing to do so can lead to investors making decisions without fully understanding the potential downsides.
Impact on Investors
If the allegation is proven true, it could mean that investors were not adequately informed about the risks involved in the non-traded products recommended by Michael Hensley. This lack of transparency can result in investors suffering substantial financial losses, as they may have invested in products that were unsuitable for their risk tolerance and investment goals. The alleged damages of $100,000 highlight the potential scale of the impact on affected investors.
Triad Advisors’ Responsibility
Triad Advisors LLC and Triad Advisors, Inc., the firms where Michael Hensley was registered as a broker and investment advisor from July 13, 2009, to December 24, 2015, also have a responsibility to ensure that their representatives adhere to ethical and regulatory standards. Firms must have robust supervisory systems in place to prevent and detect any misconduct by their associated persons.
Understanding the FINRA Rule
The Financial Industry Regulatory Authority (FINRA) has specific rules in place to protect investors from misrepresentation and omission of material facts. FINRA Rule 2210 requires that all communications with the public must be fair, balanced, and not misleading. This rule applies to the disclosures made by financial advisors when recommending investment products, including non-traded securities.
In simple terms, the rule mandates that financial advisors must:
- Present a balanced view of the risks and rewards associated with an investment
- Not omit any material facts that could impact an investor’s decision-making process
- Ensure that all claims and statements are accurate and not misleading
By allegedly failing to provide fair and balanced disclosures about the high-risk nature of non-traded products, Michael Hensley may have violated this crucial FINRA rule, which is designed to safeguard investor interests.
The Importance for Investors
The case against Michael Hensley serves as a stark reminder of the importance of transparency and full disclosure in the financial advisory industry. Investors rely on the expertise and guidance of their financial advisors to make informed decisions about their investments. When advisors fail to provide accurate and complete information about the risks involved, it can have devastating consequences for investors’ financial well-being.
Protecting Investor Rights
Investors who have suffered losses due to misconduct or negligence by their financial advisors have the right to seek recovery of their damages. FINRA provides a platform for investors to resolve disputes with their brokers and investment advisors through a process called FINRA Arbitration. This process allows investors to present their case before a panel of arbitrators who have the authority to issue binding decisions and award damages.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Michael Hensley and Triad Advisors. 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.
Red Flags for Financial Advisor Malpractice
Investors should be vigilant and watch out for potential red flags that may indicate financial advisor malpractice. Some common warning signs include:
- Lack of transparency about investment risks and fees
- Pressure to make quick investment decisions without sufficient information
- Unauthorized trading or excessive trading in client accounts
- Promises of guaranteed returns or unrealistic performance claims
If investors suspect that they have been a victim of financial advisor malpractice, they should promptly seek legal advice to protect their rights and explore their options for recovery.
Seeking Legal Assistance
Haselkorn & Thibaut offers free consultations to investors who believe they may have suffered losses due to the misconduct of their financial advisors. Their team of experienced attorneys can review the case details and provide guidance on the best course of action. With their “No Recovery, No Fee” policy, investors can pursue their claims without upfront costs, as the firm only collects a fee if a recovery is successfully obtained.
Investors who have concerns about their investments with Michael Hensley or Triad Advisors are encouraged to contact Haselkorn & Thibaut at their toll-free number, 1-888-885-7162 , to discuss their legal options.
For more information about Michael Hensley‘s registration history and the pending customer dispute, investors can access his FINRA BrokerCheck profile using his CRD number: 4052660.
As the case against Michael Hensley unfolds, it serves as a cautionary tale for investors and highlights the critical importance of working with financial advisors who prioritize transparency, integrity, and adherence to regulatory standards. By staying informed and taking prompt action when misconduct is suspected, investors can protect their rights and seek the recovery of any losses suffered due to financial advisor malpractice.
