Investment fraud is a serious matter that can lead to significant financial loss for investors. One such case currently under investigation involves financial advisor Bradford Jones and his association with INFINITY FINANCIAL SERVICES. The allegations against Jones pertain to the mishandling of an annuity-variable product, with the complainant claiming a loss of $150,000. The case, which is still pending, was filed on 9/5/2023.
Understanding the Allegation
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In simple terms, the client alleges that they were advised by Jones that the rider on their annuity could be terminated, the beneficiaries could be changed, and benefits would be frozen for one year and then reinstated with the same terms as the original rider. The termination was to be executed on August 24, 2020. However, the client’s quarterly statements around September 1, 2022, did not reflect that the rider had been reinstated. This led to the filing of the dispute.
The FINRA Rule
The Financial Industry Regulatory Authority (FINRA) is the governing body that regulates broker-dealers in the United States. According to FINRA Rule 2111, financial advisors are required to have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer. This is based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose.
Why This Matters to Investors
Investors entrust their hard-earned money to financial advisors with the expectation that they will act in their best interest. When this trust is violated, as alleged in the case of Bradford Jones, it can lead to significant financial loss. Furthermore, it undermines the credibility and integrity of the financial services industry. It’s crucial for investors to be aware of such cases to better protect their investments.
Red Flags for Financial Advisor Malpractice
Investors should be aware of certain red flags that may indicate financial advisor malpractice. These include frequent and unexplained transactions, unauthorized trades, a significant drop in account value, and investments that don’t align with the investor’s risk tolerance or financial goals. In the case of Bradford Jones, the failure to reinstate the annuity rider as promised could be seen as a red flag.
Recovering Losses through FINRA Arbitration
Investors who have suffered losses due to financial advisor malpractice can seek recourse through FINRA arbitration. This process allows investors to resolve disputes with brokers and brokerage firms. The national investment fraud law firm Haselkorn & Thibaut specializes in this area, with over 50 years of experience and a 98% success rate. They have offices in Florida, New York, North Carolina, Arizona, and Texas, and offer free consultations to clients. Their “No Recovery, No Fee” policy ensures that clients only pay if they win their case.
If you have concerns about your investments or believe you may be a victim of investment fraud, don’t hesitate to reach out to Haselkorn & Thibaut at their toll-free consultation number, 1-800-856-3352. You can also check the FINRA CRD number (6293198) for more information about Bradford Jones and INFINITY FINANCIAL SERVICES.
