Investment fraud is a serious issue that can result in massive financial losses for investors. One such allegation currently under investigation involves a financial advisor named Daniel Lundquist and the company Ausdal Financial Partners, Inc. The case is pending and revolves around a customer dispute that includes a breach of fiduciary duty, negligence and negligent misrepresentation, breach of contract, failure to supervise, and violation of Reg BI. The alleged damages amount to $50,000.
Understanding the Allegation in Simple Terms
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A breach of fiduciary duty refers to a situation where a financial advisor, who has a legal obligation to act in the best interest of their clients, fails to do so. Negligence and negligent misrepresentation occur when an advisor provides incorrect or misleading information, either out of ignorance or deliberately. A breach of contract happens when an advisor fails to fulfill the terms agreed upon in a contract with the client. Failure to supervise is when a financial institution does not adequately oversee the actions of its advisors. Violation of Reg BI (Best Interest) is when an advisor does not act in the best interest of the client, as required by the Securities and Exchange Commission (SEC).
FINRA Rule and its Relevance
The Financial Industry Regulatory Authority (FINRA) is a non-governmental organization that regulates brokerage firms and their registered representatives. It has a comprehensive set of rules designed to ensure fair and ethical practices in the financial industry. One of these is the FINRA Rule 2111, which requires that a firm or associated person have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer.
Why This Matters for Investors
Investors rely on their financial advisors for expert advice and guidance. When these advisors act unethically or negligently, it can result in significant financial losses for the investors. Moreover, such actions can erode the trust between investors and the financial industry. Therefore, it’s crucial for investors to be aware of these potential risks and understand their rights and protections under FINRA rules.
Red Flags for Financial Advisor Malpractice
Some common red flags include advisors making unauthorized transactions, recommending unsuitable investments, making false or misleading statements, and failing to disclose important information. If you notice any of these warning signs, it’s essential to take immediate action.
Recovering Losses Through FINRA Arbitration
FINRA Arbitration is a dispute resolution process that allows investors to recover losses resulting from broker misconduct. The process is quicker and less formal than court litigation, making it a preferred method for many investors.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating this case. With over 50 years of experience and a 98% success rate, they have successfully recovered financial losses for investors across the country. They offer free consultations and operate on a “No Recovery, No Fee” policy, meaning clients will not be charged unless their case is successful.
Investors who believe they may have been victimized by Daniel Lundquist or Ausdal Financial Partners, Inc. can contact Haselkorn & Thibaut at their toll-free number, 1-800-856-3352, or check the advisor’s record on FINRA’s BrokerCheck.