Raymond Hart and Abeyta, two financial advisors previously associated with USAA Investment Services Company (CRD 5475), are currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, for allegedly engaging in high-pressure sales tactics and failing to disclose crucial information to a senior citizen client. The allegations, which are pending resolution, raise serious concerns about the advisors’ conduct and the potential impact on investors.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors, as highlighted in a recent article by Forbes. The article emphasizes the importance of due diligence and working with reputable professionals to safeguard one’s investments.
The gravity of the allegations
Table of Contents
According to the customer dispute filed on March 25, 2024, Raymond Hart and Abeyta sold an annuity to a senior citizen without appropriately disclosing that they were receiving extra commissions on top of the standard commission payout for selling a high volume of one particular annuity family. The customer also alleges that the advisors employed high-pressure sales tactics without informing him of the policy’s downsides.
Regulatory violations and exploitation of a vulnerable client
The customer accuses Hart and Abeyta of violating Colorado Insurance Best Interest regulations and SEC Regulation SP during the sale. Additionally, the customer claims that the advisors took advantage of his debilitated state, as he was suffering from extreme vision issues and an inability to concentrate due to a recent assault.
Denial of complaint and unauthorized possession of private data
Despite filing a complaint with the annuity issuer, the customer’s complaint was denied based solely upon mutually supporting statements from Abeyta and Hart. Furthermore, the customer alleges that the advisors violated Regulation SP and Colorado Privacy laws by retaining unauthorized possession of his private client financial data and sharing it with their new advisory firm.
Understanding FINRA rules and investor protection
FINRA, the Financial Industry Regulatory Authority, is responsible for regulating the conduct of financial advisors and protecting investors from fraudulent practices. FINRA Rule 2111, known as the “Suitability Rule,” requires financial advisors to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile.
The importance of disclosing conflicts of interest
Financial advisors are obligated to disclose any conflicts of interest that may influence their recommendations, such as receiving additional commissions for selling specific products. By allegedly failing to disclose the extra commissions they received, Raymond Hart and Abeyta may have violated their fiduciary duty to act in the best interest of their client.
Protecting senior investors from exploitation
Senior investors are particularly vulnerable to financial exploitation, and financial advisors have a heightened responsibility to ensure that their recommendations are appropriate and that they are not taking advantage of their clients’ age or health conditions. The allegations against Hart and Abeyta underscore the importance of vigilance in protecting senior investors from abuse.
Why this matters for investors
The allegations against Raymond Hart and Abeyta serve as a stark reminder of the need for investors to remain informed and cautious when working with financial advisors. Investors should always ensure that their advisors are transparent about any potential conflicts of interest and that they fully understand the risks and downsides of any recommended investments.
Red flags for financial advisor malpractice
Investors should be aware of several red flags that may indicate financial advisor malpractice, including:
- High-pressure sales tactics
- Lack of transparency regarding commissions and fees
- Recommending unsuitable investments
- Failure to disclose conflicts of interest
- Unauthorized sharing of private client data
Recovering losses through FINRA arbitration
Investors who have suffered losses due to financial advisor malpractice may be able to recover their losses through FINRA arbitration. Haselkorn & Thibaut, with over 50 years of experience and a 98% success rate, has helped numerous investors recover their losses through this process.
Haselkorn & Thibaut is currently investigating the allegations against Raymond Hart and Abeyta, and they offer free consultations to clients. As a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, they are well-equipped to assist investors in navigating the complex legal landscape of financial malpractice.
Investors who believe they may have been victims of financial advisor malpractice are encouraged to contact Haselkorn & Thibaut at their toll-free number, 1-888-885-7162 , for a free consultation. The firm operates on a “No Recovery, No Fee” basis, ensuring that clients can seek justice without worrying about upfront costs.
For more information about Raymond Hart and his disclosure history, investors can access his FINRA BrokerCheck report by visiting: https://brokercheck.finra.org/individual/summary/6333498.
