Michael Madden, a financial advisor associated with Raymond James & Associates, Inc., is currently facing a pending customer dispute, as reported on his FINRA BrokerCheck record. The claimant alleges that Madden failed to follow her instructions to re-invest dividends from specified securities, which has led to the filing of a complaint with FINRA.
The details of the complaint, filed on January 19, 2024, indicate that the dispute is centered around equity listed securities, specifically common and preferred stock. The damage amount requested by the claimant has not been disclosed, and the resolution of the case is still pending.
Michael Madden has been registered as a broker with Raymond James & Associates, Inc. (CRD #705) in New York since March 11, 2016. He is also registered as an investment advisor with the firm. In response to the allegations, Madden has denied any wrongdoing, stating, “I deny each and every allegation of wrongdoing in the statement of claim. I fulfilled my obligations with regards to this client and believe the evidence will show that her allegations have no merit. I intend to fully defend myself from this claim.”
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with the elderly being particularly vulnerable to such scams.
Understanding the FINRA rule violation
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The alleged misconduct by Michael Madden appears to be a violation of FINRA Rule 2010, which requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade. This rule is designed to protect investors from unethical or improper practices by financial advisors.
In this case, the claimant alleges that Madden failed to follow her specific instructions regarding the reinvestment of dividends from her equity investments. If proven true, this could constitute a breach of fiduciary duty and a failure to act in the best interests of the client.
FINRA rules require financial advisors to follow client instructions and to manage their investments in accordance with the client’s stated objectives and risk tolerance. Failure to do so can result in disciplinary action by FINRA and potential legal action by the affected investor.
The impact on investors
The alleged misconduct by Michael Madden serves as a reminder of the importance of working with a trustworthy and ethical financial advisor. Investors rely on their advisors to manage their investments responsibly and to act in their best interests at all times.
When a financial advisor fails to follow client instructions or engages in improper practices, it can have severe consequences for the investor. In this case, the claimant may have suffered financial losses due to Madden’s alleged failure to reinvest dividends as instructed.
Investors who have suffered losses due to the misconduct of their financial advisors may be able to recover damages through FINRA arbitration. This process allows investors to seek compensation for losses resulting from violations of FINRA rules, breach of fiduciary duty, and other forms of advisor misconduct.
Protecting yourself from financial advisor misconduct
To minimize the risk of falling victim to financial advisor misconduct, investors should be aware of potential red flags. These may include:
- Failure to follow client instructions or disregarding stated investment objectives
- Unauthorized trading or excessive trading in client accounts
- Lack of transparency or inadequate communication regarding investment decisions
- Pressure to invest in unsuitable or high-risk products
If you suspect that your financial advisor has engaged in misconduct or caused you to suffer investment losses, it is essential to seek legal guidance from experienced professionals. Haselkorn & Thibaut, a national investment fraud law firm, is currently investigating the allegations against Michael Madden and Raymond James & Associates, Inc.
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. The firm operates on a contingency basis, meaning clients pay no fees unless a recovery is secured. They offer free consultations to investors nationwide and have offices in Florida, New York, North Carolina, Arizona, and Texas.
If you have suffered investment losses due to the misconduct of Michael Madden or any other financial advisor, contact Haselkorn & Thibaut at 1-888-885-7162 for a free consultation and case evaluation.
