Patrick Kenney, a financial professional associated with Ameritas Investment Company, LLC, is currently facing allegations of recommending unsuitable and high-risk fixed annuities to clients. The case, filed as FINRA Arbitration 24-00095, is pending as of January 22, 2024. As an expert legal and financial writer, I will break down the case information, explain the relevant FINRA rules, discuss the implications for investors, and provide guidance on identifying red flags and recovering losses.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, the SEC estimates that bad brokers are costing investors billions of dollars each year. It’s crucial for investors to be vigilant and understand their rights when it comes to unsuitable investment recommendations.
Case Information: FINRA Arbitration 24-00095
Table of Contents
In the pending FINRA Arbitration case 24-00095, claimants allege that Patrick Kenney, a financial professional associated with Ameritas Investment Company, LLC (CRD 14869), recommended unsuitable and high-risk fixed annuities to clients. The case, filed on January 22, 2024, is currently awaiting resolution.
Ameritas Investment Company, LLC is a broker-dealer and investment advisor firm based in Ohio. Patrick Kenney has been associated with the firm since June 30, 2006, and is currently registered as both a broker and an investment advisor.
Understanding Unsuitable Recommendations and FINRA Rule 2111
FINRA Rule 2111, known as the “Suitability Rule,” requires financial professionals to have a reasonable basis for believing that their investment recommendations are suitable for their clients. This assessment should be based on factors such as the client’s age, financial situation, risk tolerance, and investment objectives.
When a financial professional recommends unsuitable investments, such as high-risk fixed annuities, they may be violating FINRA Rule 2111. Fixed annuities, while offering the potential for steady income, can be complex products with high fees and strict withdrawal limitations, making them unsuitable for some investors.
The Impact on Investors
Unsuitable investment recommendations can have severe consequences for investors. When a financial professional puts their clients into high-risk or inappropriate investments, it can lead to substantial financial losses, derailing retirement plans and jeopardizing financial security.
Investors who have suffered losses due to unsuitable recommendations may be eligible to recover damages through FINRA Arbitration. This process allows investors to seek compensation for the losses they have incurred as a result of their financial professional’s misconduct.
Identifying Red Flags and Seeking Help
Investors should be vigilant in monitoring their investments and the conduct of their financial professionals. Some red flags that may indicate potential misconduct include:
- Recommendations that seem too good to be true or do not align with your risk tolerance and investment goals
- Pressure to make quick decisions or invest in complex products without fully understanding the risks
- Lack of transparency regarding fees, commissions, or potential conflicts of interest
If you suspect that you have been the victim of unsuitable investment recommendations, it is crucial to seek help from experienced professionals. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Patrick Kenney and Ameritas Investment Company, LLC.
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 “No Recovery, No Fee” basis, ensuring that clients can seek justice without upfront costs.
If you have suffered losses due to unsuitable investment recommendations from Patrick Kenney or any other financial professional, contact Haselkorn & Thibaut for a free consultation at 1-888-885-7162 .
