Michele Savarese, a broker and investment advisor affiliated with CreativeOne Securities, LLC, is currently facing allegations of breach of fiduciary duty and account negligence. The customer dispute, filed on January 3, 2024, is pending resolution and involves investments in Business Development Companies (BDCs). According to FINRA’s BrokerCheck, Savarese has been in the financial industry since 2002 and has been associated with several firms throughout her career.
Understanding the Allegations and FINRA Rules
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The allegations against Michele Savarese revolve around two key aspects: breach of fiduciary duty and account negligence. Fiduciary duty refers to the legal obligation of a financial advisor to act in the best interests of their clients. This includes providing suitable investment recommendations, disclosing potential conflicts of interest, and managing client accounts with the utmost care and diligence. Investopedia defines fiduciary duty as “a legal obligation of one party to act in the best interest of another.”
Account negligence, on the other hand, occurs when a financial advisor fails to manage a client’s account properly, leading to investment losses. This can involve actions such as failing to diversify a portfolio, ignoring a client’s risk tolerance, or engaging in excessive trading for the purpose of generating commissions. Investment fraud and bad advice from financial advisors are unfortunately common occurrences that can have devastating consequences for investors.
FINRA, the Financial Industry Regulatory Authority, oversees the conduct of financial advisors and enforces rules to protect investors. FINRA Rule 2111, known as the “Suitability Rule,” requires financial advisors to have a reasonable basis for believing that an investment recommendation is suitable for a particular client based on their financial situation, risk tolerance, and investment objectives.
The Impact on Investors
Allegations of breach of fiduciary duty and account negligence can have significant consequences for investors. When a financial advisor fails to act in their client’s best interests or manages their account carelessly, it can lead to substantial investment losses.
Investors who have suffered losses due to the misconduct of their financial advisor may be entitled to recover damages through FINRA arbitration. This process allows investors to seek compensation for their losses without the need for a lengthy and expensive court battle.
It is crucial for investors to be aware of their rights and to take action promptly if they suspect misconduct by their financial advisor. The law firm of Haselkorn & Thibaut is currently investigating the allegations against Michele Savarese and CreativeOne Securities, LLC and offering free consultations to affected clients.
Recognizing Red Flags and Seeking Legal Assistance
Investors should be vigilant in monitoring their investments and the conduct of their financial advisors. Some red flags that may indicate potential misconduct include:
- Unexplained or excessive account losses
- Unauthorized trades or changes to investment strategy
- Failure to provide regular account statements or updates
- Pressure to invest in high-risk or unsuitable products
If investors suspect that they have been the victim of financial advisor misconduct, it is essential to seek legal assistance from experienced professionals. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, has a proven track record of successfully representing investors in FINRA arbitration.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has helped numerous investors recover their losses. The firm operates on a contingency fee basis, meaning clients pay no fees unless a recovery is obtained.
Investors who have suffered losses due to the alleged misconduct of Michele Savarese or CreativeOne Securities, LLC are encouraged to contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-628-5590.
As the case against Michele Savarese unfolds, it serves as a reminder of the importance of working with trustworthy and ethical financial advisors who prioritize their clients’ best interests. By staying informed and taking prompt action when necessary, investors can protect their financial well-being and hold accountable those who breach their fiduciary duties.
