Investors are urged to take note of serious allegations surrounding a broker from Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD 7691). The allegations are currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm with an impressive track record of successful financial recoveries for investors. The firm is offering free consultations to clients who may have been affected by this case.
Allegation’s Seriousness and Case Information
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The allegations against financial advisor Michael Crosett are of a grave nature. According to the Financial Industry Regulatory Authority (FINRA) CRD number 2250412, the case involves the transfer of cemetery company assets in July 2015, to the cemetery’s account at another institution. These transfers were allegedly made under the written instructions of the cemetery’s President and Trustee, who was authorized on the cemetery’s accounts at all times.
However, the State of Georgia alleges that the cemetery company failed to notify the State of the transfer of the assets. These assets, after leaving Merrill, were allegedly used for the President and Trustee’s personal benefit. The Commissioner of Securities for the State of Georgia also alleges that Merrill and Crosett failed to supervise the accounts of a client with respect to the styling of the customer’s name on the accounts between 1996 and 2015 and Merrill’s processing of instructions received from the authorized individual on the accounts in July 2015.
Explanation in Simple Terms and the FINRA Rule
At a basic level, the allegations involve a failure to supervise and a potential misuse of client funds. The FINRA rules require that financial advisors and their firms exercise due diligence and maintain rigorous oversight over client accounts. They are also required to ensure that all transactions are conducted in accordance with the client’s instructions and in the client’s best interest.
In this case, the State of Georgia alleges that these rules were violated. The allegation that the cemetery company did not notify the state of the asset transfer, and that the assets were used for personal benefit, raises serious questions about the level of supervision exercised by Merrill and Crosett.
Why It Matters for Investors
These allegations are of significant concern for investors. They highlight the importance of vigilance and the need for robust oversight in financial transactions. If proven, the allegations could indicate a potential breach of trust and a violation of the duty that financial advisors owe to their clients.
Investors entrust their hard-earned money to financial advisors and firms with the expectation that their investments will be managed responsibly and in their best interest. Allegations of this nature can erode investor confidence and underscore the importance of rigorous supervision and adherence to FINRA rules.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
Investors should be aware of certain red flags that may indicate potential financial advisor malpractice. These include unauthorized transactions, inconsistent account statements, and a lack of transparency or communication from the advisor or firm. In this case, the alleged failure to supervise and the possible misuse of client funds are serious red flags.
If investors suspect malpractice, they should immediately contact an experienced investment fraud law firm such as Haselkorn & Thibaut. With over 50 years of experience and an impressive 98% success rate, the firm specializes in helping investors recover losses through FINRA Arbitration. They offer a “No Recovery, No Fee” policy and can be reached at their toll-free consultation number, 1-800-856-3352.
Allegations of this nature underscore the importance of investor vigilance and the need for robust legal representation. Investors are encouraged to contact Haselkorn & Thibaut for a free consultation if they have any concerns or questions about this case.
