Richard Shaw, a registered representative with Lincoln Financial Advisors Corporation, is facing allegations of recommending unsuitable oil and gas investments to a client. The customer dispute, filed on February 16, 2024, is currently pending resolution. The claimant alleges that Shaw’s investment advice was inappropriate and has requested damages amounting to $500,000 in the complaint.
Lincoln Financial Advisors Corporation is a registered broker-dealer and investment advisory firm with the Financial Industry Regulatory Authority (FINRA). Richard Shaw has been associated with the firm since June 1, 1998, and is currently registered as a broker and investment advisor in Arizona. His FINRA CRD number is 1870018.
The investment fraud lawyers at Haselkorn & Thibaut, a national law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, are currently investigating the allegations against Richard Shaw and Lincoln Financial Advisors Corporation. They offer free consultations to clients who may have suffered investment losses due to unsuitable recommendations by their financial advisors.
According to a recent Forbes article, bad financial advice from advisors can cost investors significant sums of money. The article highlights the importance of carefully vetting financial advisors and being aware of potential red flags that may indicate unsuitable investment recommendations.
Understanding unsuitable investment recommendations
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Financial advisors are obligated to recommend investments that align with their clients’ risk tolerance, financial goals, and investment objectives. This obligation is outlined in FINRA Rule 2111, known as the suitability rule. The rule requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the information obtained through reasonable diligence.
When a financial advisor recommends investments that are inconsistent with a client’s profile, it is considered an unsuitable recommendation. Oil and gas investments, for example, are often high-risk and may not be appropriate for all investors, particularly those with a low risk tolerance or those nearing retirement.
The impact of unsuitable investments on investors
Unsuitable investment recommendations can have severe consequences for investors. When a financial advisor recommends investments that do not align with a client’s risk tolerance or financial goals, the client may experience significant investment losses. These losses can derail an investor’s financial plans, jeopardize their retirement, and cause undue stress and hardship.
Investors who have suffered losses due to unsuitable investment recommendations may be entitled to recover damages through FINRA arbitration. By working with experienced investment fraud attorneys, investors can navigate the complex arbitration process and seek to hold their financial advisors accountable for their actions.
Identifying red flags and seeking legal assistance
Investors should be vigilant in monitoring their investments and the recommendations made by their financial advisors. Some red flags that may indicate unsuitable investment advice include:
- Investments that do not align with the investor’s risk tolerance or financial goals
- High-risk investments recommended to conservative investors
- Overconcentration in a single investment or sector
- Lack of diversification in the investment portfolio
- Excessive trading or churning of the account to generate commissions
If an investor suspects that their financial advisor has made unsuitable investment recommendations, they should consider seeking legal assistance. Haselkorn & Thibaut has over 50 years of combined experience in representing investors in FINRA arbitration cases. With a 98% success rate and a “No Recovery, No Fee” policy, the firm has helped countless investors recover their losses.
Investors can contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-885-7162 . The firm’s experienced investment fraud lawyers will review the case and advise investors on the best course of action to recover their losses.
