In a recent development, Robert Earls, a former financial advisor associated with LPL Financial LLC (CRD 6413), has been accused of misappropriating client funds from 2015 through 2024. The customer dispute, filed on February 7, 2024, is currently pending resolution. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the advisor and the company.
According to the disclosure on Earls’ FINRA BRD (1369915), the client alleges that the advisor misappropriated funds during the specified period. The details of the alleged misconduct and the amount of damages requested have not been disclosed. LPL Financial LLC, the company with which Earls was associated, is a registered broker-dealer and investment advisor firm.
Haselkorn & Thibaut is offering free consultations to clients who may have been affected by Earls’ alleged misconduct. With over 50 years of combined experience and a 98% success rate, the firm has a proven track record of helping investors recover their losses through FINRA arbitration.
Investment fraud and bad advice from financial advisors are unfortunately common occurrences in the financial industry. According to a Forbes article, the Securities and Exchange Commission (SEC) estimates that investors lose billions of dollars each year due to fraudulent investment schemes. It is crucial for investors to be vigilant and proactive in monitoring their investments and the activities of their advisors to prevent falling victim to such malpractices.
Understanding the Allegations and FINRA Rules
Table of Contents
Misappropriation of client funds is a serious violation of FINRA rules and can result in severe consequences for the advisor, including fines, suspensions, and even permanent barring from the industry. FINRA Rule 2150 prohibits the improper use of customer funds, stating that no member or associated person shall misuse or convert customer funds or securities.
In simple terms, misappropriation occurs when a financial advisor uses client funds for their own benefit or purposes other than what the client intended. This can include unauthorized transfers, using client funds to cover personal expenses, or investing client money without proper authorization.
FINRA rules are in place to protect investors and maintain the integrity of the financial industry. When an advisor violates these rules, it can lead to significant harm to clients, both financially and emotionally.
The Importance for Investors
The allegations against Robert Earls serve as a reminder of the importance of diligence when selecting and working with a financial advisor. Investors must remain vigilant and proactive in monitoring their investments and the activities of their advisors.
Misappropriation of funds can have devastating consequences for investors, leading to significant financial losses and shattered trust. It is crucial for investors to be aware of the red flags that may indicate advisor misconduct and to take swift action if they suspect any wrongdoing.
By working with experienced investment fraud attorneys, such as those at Haselkorn & Thibaut, investors can seek to recover their losses through FINRA arbitration. The firm’s “No Recovery, No Fee” policy ensures that clients can pursue their claims without upfront costs, and their impressive success rate offers hope for those who have fallen victim to advisor misconduct.
Red Flags and Recovering Losses
Investors should be aware of several red flags that may indicate financial advisor malpractice, including:
- Unauthorized transactions or transfers
- Inconsistencies in account statements or performance reports
- Lack of communication or evasiveness from the advisor
- Pressure to make quick investment decisions or change investment strategies
If an investor suspects that their financial advisor has engaged in misconduct, they should take immediate action to protect their interests. This may include:
- Gathering all relevant documentation, such as account statements and correspondence with the advisor
- Contacting the advisor’s firm to report the suspected misconduct and request an investigation
- Filing a complaint with FINRA or the appropriate regulatory agency
- Consulting with an experienced investment fraud attorney to discuss legal options and potential recovery of losses
Haselkorn & Thibaut has a proven track record of successfully representing investors in FINRA arbitration cases, with a 98% success rate. Their team of experienced attorneys is committed to fighting for the rights of investors and holding financial advisors accountable for their misconduct. With offices located throughout the country and a toll-free consultation number (1-888-885-7162 ), Haselkorn & Thibaut is well-positioned to assist investors in recovering their losses.
