Amerprise Financial Services, LLC and its representative, Ronald Denova, are currently under investigation by the national investment fraud law firm, Haselkorn & Thibaut. The firm, with offices in Florida, New York, North Carolina, Arizona, and Texas, is looking into allegations of unsuitable investments made by Denova on behalf of a customer in 2014.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, the U.S. Securities and Exchange Commission (SEC) has been cracking down on investment fraud, with numerous cases involving Ponzi schemes and other forms of misconduct.
Customer Dispute Alleges Unsuitable Investments
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According to a pending customer dispute filed on February 8, 2024, the customer alleges that investments made in 2014 by Ronald Denova, a representative of Ameriprise Financial Services, LLC, were unsuitable for the customer’s investment objectives and risk tolerance. The dispute specifically involves real estate securities.
Ameriprise Financial Services, LLC is a registered broker-dealer with the Financial Industry Regulatory Authority (FINRA), bearing the Central Registration Depository (CRD) number 6363. Ronald Denova, the financial advisor in question, has been registered with the firm as a broker and investment advisor since August 17, 2020, according to his BrokerCheck record (CRD #1673284).
FINRA Rules Require Suitable Investments
FINRA Rule 2111, known as the “Suitability Rule,” requires financial advisors to have a reasonable basis to believe that a recommended investment or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as age, financial situation, investment objectives, and risk tolerance.
When a financial advisor recommends investments that are inconsistent with a customer’s investment profile, it may constitute a violation of FINRA rules. Unsuitable investments can expose customers to excessive risk and lead to significant financial losses.
The Importance of Suitable Investments for Investors
Investors rely on the expertise and guidance of financial advisors to make informed investment decisions that align with their financial goals and risk tolerance. When advisors recommend unsuitable investments, it can have severe consequences for investors, including:
- Substantial financial losses
- Inability to meet long-term financial objectives
- Emotional distress and loss of trust in financial professionals
Investors must be aware of their rights and the legal recourse available to them when they fall victim to unsuitable investment recommendations. The investment fraud lawyers at Haselkorn & Thibaut can help investors navigate the complex legal process and seek the compensation they deserve.
Red Flags for Financial Advisor Malpractice
Investors should be vigilant for signs of potential misconduct by their financial advisors. Some red flags that may indicate malpractice include:
- Investments that do not align with the investor’s risk tolerance or financial goals
- Lack of diversification in the investment portfolio
- Excessive trading or churning of the account to generate commissions
- Failure to disclose material information about investments or conflicts of interest
Recovering Losses Through FINRA Arbitration
Investors who have suffered losses due to unsuitable investments may be able to recover damages through FINRA arbitration. Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped numerous investors recover their losses through this process.
FINRA arbitration is a private, efficient alternative to court litigation, where a neutral third-party arbitrator hears the dispute and renders a binding decision. Experienced investment fraud attorneys can guide investors through the arbitration process and help them build a strong case for recovery.
Free Consultation with Haselkorn & Thibaut
Haselkorn & Thibaut is offering free consultations to investors who may have been affected by unsuitable investments recommended by Ronald Denova or other financial advisors at Ameriprise Financial Services, LLC. Investors can contact the firm toll-free at 1-888-885-7162 to discuss their case and potential legal options.
The firm operates on a contingency fee basis, meaning clients pay no fees unless a recovery is obtained. With their extensive experience, successful track record, and commitment to protecting investors’ rights, Haselkorn & Thibaut is well-positioned to assist investors in navigating the FINRA arbitration process and seeking the compensation they deserve.
