In a recent development, a customer has filed a complaint against Ryan Shoop, a registered representative associated with Westminster Financial Securities, Inc. (CRD 20677) in Ohio. The complaint, dated January 17, 2024, alleges that Shoop engaged in unauthorized transactions and misrepresented the nature of the account into which the customer’s money was invested, placing the customer in a high-risk investment strategy. The alleged misconduct occurred between March 1, 2022, and May 31, 2023, involving equity listed products such as common and preferred stock.
The customer dispute, which was denied by the firm, raises concerns about the suitability of the investment recommendations and the potential breach of fiduciary duty by the advisor. Westminster Financial Securities, Inc., a broker-dealer and investment advisory firm, is responsible for supervising its representatives and ensuring compliance with FINRA rules and regulations.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Ryan Shoop and Westminster Financial Securities, Inc. in connection with this complaint. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. The firm offers free consultations to clients and operates on a “No Recovery, No Fee” basis.
According to a recent Forbes article, financial advisor fraud is a significant problem that can have devastating consequences for investors. In 2020 alone, the U.S. Securities and Exchange Commission (SEC) ordered $3.2 billion in disgorgement and penalties for investment fraud cases.
Understanding FINRA Rules and Unauthorized Transactions
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FINRA Rule 2010 requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade. This rule encompasses a wide range of conduct, including unauthorized trading, which is prohibited under FINRA Rule 3260. Unauthorized trading occurs when a broker executes transactions in a customer’s account without obtaining the customer’s prior authorization.
Additionally, FINRA Rule 2111 requires brokers to have a reasonable basis to believe that a recommended transaction 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.
Misrepresenting the nature of an account or placing a customer in a high-risk investment strategy without proper disclosure and consent may constitute a violation of these FINRA rules. Investors who have suffered losses due to such misconduct may have grounds to seek recovery through FINRA arbitration.
The Importance of Suitability and Investor Protection
The allegations against Ryan Shoop and Westminster Financial Securities, Inc. underscore the importance of suitability in investment recommendations. Brokers and investment advisors have a duty to recommend investments that align with their clients’ risk tolerance, financial goals, and overall investment profile.
Unauthorized transactions and misrepresentations can lead to significant financial losses for investors, particularly when they are placed in high-risk investment strategies without their knowledge or consent. Such misconduct erodes trust in the financial industry and undermines investor confidence.
FINRA arbitration provides a forum for investors to seek redress and recover losses caused by broker misconduct. By holding advisors and firms accountable, FINRA aims to maintain the integrity of the financial markets and protect investor interests.
Red Flags and Seeking Legal Assistance
Investors should be vigilant for red flags that may indicate financial advisor malpractice. These include unauthorized transactions, misrepresentations about investment products or strategies, and investments that seem inconsistent with the investor’s stated goals and risk tolerance.
If investors suspect misconduct or have suffered losses due to unauthorized trading or unsuitable recommendations, they should promptly consult with an experienced investment fraud attorney. Law firms like Haselkorn & Thibaut offer free consultations to help investors assess their legal options and navigate the FINRA arbitration process.
Investors should gather relevant documentation, such as account statements, correspondence with the advisor, and any evidence of unauthorized transactions or misrepresentations. This information can be crucial in building a strong case for recovery.
Pursuing Recovery Through FINRA Arbitration
FINRA arbitration is a dispute resolution process that allows investors to seek recovery of losses caused by broker misconduct. Arbitration is typically faster and less formal than litigation in court, and the decisions rendered by arbitrators are binding.
Investors who have suffered losses due to unauthorized trading, unsuitable recommendations, or other forms of misconduct by Ryan Shoop or Westminster Financial Securities, Inc. may be able to recover damages through FINRA arbitration. Haselkorn & Thibaut, with their extensive experience and high success rate, can guide investors through the process and work tirelessly to pursue the best possible outcome.
For a free consultation with Haselkorn & Thibaut, investors can call their toll-free number at 1-888-885-7162. With offices strategically located across the country, the firm is well-positioned to assist investors nationwide in protecting their rights and recovering losses.
As the investigation into Ryan Shoop and Westminster Financial Securities, Inc. unfolds, it serves as a reminder of the importance of working with trustworthy and ethical financial professionals. By staying informed, vigilant, and proactive, investors can help safeguard their financial futures and hold wrongdoers accountable.
