Sandeep Varma, a broker and investment advisor with Avantax Investment Services, Inc., is currently facing a pending customer dispute, according to his FINRA BrokerCheck record. The complaint, filed on February 8, 2024, alleges that an investment made in 2014 was unsuitable for the customer’s investment objectives and risk tolerance. The investment in question is a real estate security, and the customer is seeking damages, although the specific amount requested has not been disclosed.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Sandeep Varma and Avantax Investment Services, Inc. regarding this pending dispute. 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. They offer free consultations to clients and operate on a “No Recovery, No Fee” basis. Investors can reach out to them for a consultation by calling their toll-free number at 1-888-885-7162 .
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with the elderly being particularly vulnerable. It is crucial for investors to be aware of the risks and to take steps to protect themselves from unscrupulous advisors.
Understanding Suitability Requirements and FINRA Rule 2111
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FINRA Rule 2111, known as the “Suitability Rule,” requires brokers and investment advisors to have a reasonable basis for believing that a recommended investment or investment strategy is suitable for their client. This assessment should be based on the client’s investment profile, which includes factors such as age, financial situation, investment objectives, risk tolerance, and investment experience.
Brokers’ Obligations Under the Suitability Rule
Brokers must gather and analyze information about their clients to develop an understanding of their investment profiles. They should then use this information to make recommendations that align with the client’s objectives and risk tolerance. Failure to do so may be considered a violation of FINRA Rule 2111 and could result in disciplinary action.
Importance of Suitability for Investors
Suitability is a critical aspect of investor protection. When brokers recommend investments that are not suitable for their clients, it can lead to significant financial losses. Unsuitable investments may expose investors to risks they are not willing or able to tolerate, or they may not align with the investor’s financial goals and objectives.
The Impact of Unsuitable Investments on Investors’ Portfolios
Unsuitable investments can have a detrimental effect on an investor’s portfolio. They may underperform, leading to missed opportunities for growth, or they may result in substantial losses that can be difficult to recover from. In some cases, unsuitable investments can jeopardize an investor’s financial security and derail their long-term financial plans.
Recognizing Red Flags of Financial Advisor Malpractice
Investors should be aware of potential red flags that may indicate financial advisor malpractice. These include:
- Recommendations that seem inconsistent with the investor’s risk tolerance or investment objectives
- Lack of diversification in the portfolio
- Excessive trading or churning of the account
- Unexplained or unauthorized transactions
- Pressure to make quick investment decisions
Seeking Recovery Through FINRA Arbitration
If an investor believes they have suffered losses due to unsuitable investments or other forms of financial advisor malpractice, they may be able to recover damages through FINRA arbitration. This process allows investors to seek compensation for losses caused by the misconduct of brokers and investment advisors.
How Haselkorn & Thibaut Can Help
Investors who have suffered losses due to unsuitable investments or other forms of financial advisor malpractice can benefit from the expertise of a skilled investment fraud law firm like Haselkorn & Thibaut. With their extensive experience and successful track record, they can guide investors through the FINRA arbitration process and work to help them recover their losses. Investors can contact Haselkorn & Thibaut for a free consultation by calling 1-888-885-7162 .
As the pending dispute against Sandeep Varma and Avantax Investment Services, Inc. unfolds, it serves as a reminder of the importance of suitability in investment recommendations. Investors should remain vigilant and seek the assistance of experienced professionals if they suspect misconduct or unsuitable investment advice. By working with firms like Haselkorn & Thibaut, investors can take steps to protect their rights and recover losses arising from financial advisor malpractice.
