Peter Kalmus, a broker associated with IBN Financial Services, Inc., is currently facing allegations of unsuitable recommendations and inadequate due diligence related to offerings presented by GPB Capital Holdings, LLC. The customer dispute, filed on January 31, 2024, is currently pending resolution and involves direct investment in DPP & LP interests.
According to a recent study by the Forbes, investment fraud and bad advice from financial advisors are more common than many investors realize. In fact, the study found that nearly 20% of investors have been victims of investment fraud at some point in their lives.
Understanding Unsuitable Recommendations and Due Diligence
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Unsuitable recommendations occur when a broker or financial advisor recommends investments that do not align with a client’s financial goals, risk tolerance, or investment objectives. FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile.
Due diligence refers to the investigation and evaluation of a potential investment opportunity. Brokers and financial advisors are obligated to conduct thorough due diligence before recommending an investment to their clients. This process involves examining the investment’s risks, potential returns, and alignment with the client’s financial objectives.
The Importance of Suitability and Due Diligence for Investors
Unsuitable recommendations and inadequate due diligence can have severe consequences for investors. When brokers fail to consider a client’s unique financial situation and recommend inappropriate investments, investors may face substantial losses, missed opportunities, and financial hardship.
Investors rely on the expertise and guidance of their financial advisors to make informed investment decisions. When advisors breach this trust by making unsuitable recommendations or failing to conduct proper due diligence, investors may find themselves in a precarious financial position.
Protecting Yourself from Financial Advisor Malpractice
To safeguard your investments and protect yourself from financial advisor malpractice, consider the following red flags:
- Recommendations that seem too good to be true or promise guaranteed returns
- Pressure to make quick investment decisions without sufficient time to review the details
- Lack of transparency regarding investment risks and fees
- Failure to provide clear explanations of complex investment products
If you suspect that you have fallen victim to unsuitable recommendations or inadequate due diligence, it is crucial to seek legal guidance from experienced investment fraud attorneys. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Peter Kalmus and IBN Financial Services, Inc. for potential misconduct.
Pursuing Recovery Through FINRA Arbitration
Investors who have suffered losses due to unsuitable recommendations or inadequate due diligence may be able to recover their losses through FINRA arbitration. FINRA, or the Financial Industry Regulatory Authority, is a self-regulatory organization that oversees the securities industry in the United States.
FINRA arbitration provides a forum for investors to resolve disputes with their brokers or financial advisors. With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses through FINRA arbitration.
If you believe you have been the victim of unsuitable recommendations or inadequate due diligence by Peter Kalmus or IBN Financial Services, Inc., contact Haselkorn & Thibaut for a free consultation. Their experienced investment fraud attorneys will review your case and help you understand your legal options. With their “No Recovery, No Fee” policy, you can pursue justice without upfront costs. Call their toll-free number at 1-888-885-7162 to schedule your consultation today.
For more information about Peter Kalmus‘ disclosure history, visit his FINRA BrokerCheck report at https://brokercheck.finra.org/individual/summary/1522531.
