In a recent development that has sent shockwaves through the investment community, a serious allegation has been made against Per Furmark, a broker and investment advisor associated with Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD 7691) in New York. According to the disclosure filed on March 5, 2024, a client has accused Furmark of engaging in unauthorized trading on January 11, 2023. This allegation, which was denied by the advisor, has raised concerns among investors and prompted an investigation into the matter.
The seriousness of this allegation cannot be overstated, as unauthorized trading is a direct violation of the trust that investors place in their financial advisors. When an advisor executes trades without the client’s consent or knowledge, it not only undermines the client’s financial goals but also exposes them to potential losses. In this case, the details of the alleged unauthorized trading and the extent of any damages incurred by the client remain undisclosed. However, the mere existence of such an allegation is sufficient to warrant a thorough investigation and heighten investor vigilance.
Investment fraud and bad advice from financial advisors are unfortunately all too common. According to a Forbes article, in 2021 alone, the Federal Trade Commission received over 2.8 million reports of fraud, with losses totaling more than $5.8 billion. It is crucial for investors to be aware of the risks and to take steps to protect themselves from unscrupulous advisors.
Understanding Unauthorized Trading and FINRA Rule 2010
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Unauthorized trading occurs when a financial advisor buys or sells securities in a client’s account without obtaining the client’s prior consent. This practice is strictly prohibited by the Financial Industry Regulatory Authority (FINRA), as it violates the fundamental principles of fair dealing and ethical conduct. FINRA Rule 2010 requires that all registered representatives, including brokers and investment advisors, adhere to high standards of commercial honor and just and equitable principles of trade.
In simple terms, unauthorized trading is a breach of the fiduciary duty that financial advisors owe to their clients. Advisors are entrusted with the responsibility of acting in their clients’ best interests and must always obtain their consent before executing any trades on their behalf. By engaging in unauthorized trading, advisors prioritize their own interests over those of their clients, potentially exposing them to unwarranted risks and losses.
The Importance of Investor Awareness and Protection
The allegation against Per Furmark serves as a stark reminder of the importance of investor awareness and protection. As an investor, it is crucial to remain vigilant and proactive in monitoring your investments and the activities of your financial advisor. Regularly reviewing your account statements, questioning any unfamiliar or suspicious trades, and maintaining open communication with your advisor are essential steps in safeguarding your financial well-being.
Moreover, investors must be aware of their rights and the avenues available to them in the event of financial advisor misconduct. FINRA arbitration provides a platform for investors to seek redress and recover losses arising from unauthorized trading and other forms of investment fraud. By filing a claim through FINRA arbitration, investors can have their case heard by a panel of impartial arbitrators who possess the expertise to evaluate the merits of their claim and determine an appropriate remedy.
Red Flags and Seeking Legal Assistance
Investors should be attentive to red flags that may indicate financial advisor malpractice, such as:
- Unexplained or excessive trading activity in their accounts
- Trades that are inconsistent with their investment objectives and risk tolerance
- Lack of communication or evasive behavior from their advisor
- Significant losses or deviations from expected returns
If you suspect that you have been a victim of unauthorized trading or other forms of investment fraud, it is essential to seek the assistance of experienced legal professionals. 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 Per Furmark and Merrill Lynch, Pierce, Fenner & Smith Incorporated. With over 50 years of combined experience and a remarkable 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses through FINRA arbitration.
Haselkorn & Thibaut offers free consultations to investors who believe they have been wronged by their financial advisors. Their “No Recovery, No Fee” policy ensures that clients can seek justice without the burden of upfront legal costs. If you have any concerns or questions regarding your investments with Per Furmark or Merrill Lynch, Pierce, Fenner & Smith Incorporated, do not hesitate to contact Haselkorn & Thibaut at their toll-free number: 1-888-885-7162 .
The allegation against Per Furmark is a sobering reminder of the importance of investor vigilance and the need for a robust system of investor protection. As the investigation unfolds, it is crucial for investors to remain informed, assertive, and proactive in safeguarding their financial futures. By working with experienced legal professionals like Haselkorn & Thibaut, investors can hold financial advisors accountable for their actions and seek the justice and compensation they deserve.
