Michael McFeeley, a broker and investment advisor with Lincoln Financial Advisors Corporation, is facing a serious customer dispute allegation that could have significant implications for investors. According to the disclosure on his FINRA CRD (Central Registration Depository) profile, the claimant alleges that McFeeley recommended an unsuitable oil and gas investment. The disclosure, filed on February 16, 2024, is currently pending resolution.
The severity of this allegation cannot be overstated, as it raises concerns about the suitability of the investment advice provided by Michael McFeeley and the due diligence processes of Lincoln Financial Advisors Corporation. Unsuitable investment recommendations can lead to substantial financial losses for investors, eroding their trust in the financial advisory industry and potentially impacting their long-term financial goals. According to a report by Forbes, bad investment advice from financial advisors is a significant problem that can have devastating consequences for investors.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Michael McFeeley and Lincoln Financial Advisors Corporation in connection with this allegation. The firm encourages any clients who have suffered losses due to unsuitable oil and gas investment recommendations to contact them for a free consultation.
Understanding unsuitable investment recommendations
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FINRA Rule 2111, known as the “Suitability Rule,” requires brokers and investment advisors to have a reasonable basis for believing that an investment recommendation is suitable for a particular customer, based on that customer’s investment profile. This profile includes factors such as the customer’s age, financial situation, investment objectives, risk tolerance, and investment experience.
When a broker or investment advisor recommends an investment that is inconsistent with a customer’s investment profile, it is considered an unsuitable recommendation. Unsuitable recommendations can occur due to a variety of factors, including a lack of due diligence on the part of the advisor, conflicts of interest, or a misunderstanding of the customer’s needs and goals.
The impact of unsuitable recommendations on investors
Unsuitable investment recommendations can have a devastating impact on investors’ financial well-being. When an investor is steered toward an investment that does not align with their risk tolerance or investment objectives, they may face:
- Substantial financial losses
- Missed opportunities for growth in more appropriate investments
- Emotional distress and loss of confidence in the financial advisory industry
Moreover, unsuitable recommendations can be particularly harmful to vulnerable investors, such as seniors or those with limited investment knowledge. These investors may rely heavily on the advice of their financial advisors, making it all the more crucial that the advice they receive is suitable and in their best interests.
Protecting yourself from unsuitable investment advice
Investors can take several steps to protect themselves from unsuitable investment advice and to identify potential red flags:
- Ensure that your financial advisor thoroughly understands your investment profile, including your risk tolerance, investment objectives, and financial situation.
- Ask questions about the risks and suitability of any recommended investments, and request clear explanations of how these investments align with your goals.
- Regularly review your investment portfolio and question any investments that seem inconsistent with your profile or that have performed poorly.
- If you suspect that you have received unsuitable investment advice, contact a qualified investment fraud attorney to discuss your legal options.
Recovering losses through FINRA arbitration
Investors who have suffered losses due to unsuitable investment recommendations may be able to recover those losses through FINRA arbitration. FINRA arbitration is a dispute resolution process that allows investors to seek compensation from brokers and investment advisors who have violated FINRA rules or engaged in other forms of misconduct.
Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped numerous investors recover losses through FINRA arbitration. The firm operates on a “No Recovery, No Fee” basis, meaning that clients pay no fees unless a recovery is obtained on their behalf.
If you believe that you have been the victim of unsuitable investment advice from Michael McFeeley or Lincoln Financial Advisors Corporation, contact Haselkorn & Thibaut today at 1-888-885-7162 for a free consultation.
