Investment fraud allegations are serious matters that demand immediate attention. They are not only damaging to the reputation of the financial advisor and their associated firm, but they can also cause substantial financial losses for investors. One such allegation has been made against Robert Rasbach, a broker currently associated with Kingswood Capital Partners, LLC, and previously with David Lerner Associates, Inc.
The Allegation Simplified and the FINRA Rule
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The allegation against Robert Rasbach revolves around his involvement in the sale of SOAEX, where he is accused of unsuitability and misrepresentation/omission. In simple terms, the allegation suggests that Rasbach recommended an investment that was not suitable for the client’s financial situation and goals. Furthermore, he is accused of either misrepresenting the investment or omitting crucial information about it. The alleged misconduct took place from October 1, 2014, the date of the first purchase of SOAEX, to October 2, 2023, the date the Statement of Claim (SOC) was received.
According to FINRA Rule 2111 (Suitability), brokers must have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer. This rule protects investors from inappropriate investment advice and potential financial harm.
Why It Matters to Investors
Investors trust financial advisors with their hard-earned money, expecting them to act in their best interest. When an advisor fails to do this, it can lead to significant financial losses. In this case, the alleged misconduct has resulted in a customer dispute with a claimed damage of $500,000. It’s a stark reminder of the potential financial harm that can result from unsuitable advice or misrepresentation/omission.
Red Flags for Financial Advisor Malpractice
- Recommendations that don’t align with your financial goals or risk tolerance.
- Failure to fully disclose the risks associated with an investment.
- Pressure to make quick investment decisions.
- Unexplained losses or failure to provide regular account statements.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Robert Rasbach and the associated companies. They offer free consultations to clients who may have been affected.
FINRA Arbitration and Investor Recovery
FINRA Arbitration is a dispute resolution process where a neutral third party, known as an arbitrator, resolves disputes between investors and brokers. This process can help investors recover losses resulting from broker misconduct. With over 50 years of experience and an impressive 98% success rate, Haselkorn & Thibaut has successfully recovered financial losses for investors through FINRA Arbitration.
The firm operates under a “No Recovery, No Fee” policy, meaning they only get paid if they successfully recover your losses. If you believe you’ve been a victim of investment fraud or broker misconduct, contact Haselkorn & Thibaut at their toll-free consultation number 1-800-856-3352.
In conclusion, allegations of financial advisor malpractice are serious and can have significant financial implications for investors. It’s crucial for investors to be vigilant and seek professional help if they suspect misconduct. Haselkorn & Thibaut is dedicated to helping investors recover their losses and holding financial advisors accountable for their actions.
