In a recent development, a serious allegation has been made against Michael McFeeley, a financial advisor associated with Lincoln Financial Advisors Corporation (CRD 3978) in Pennsylvania. The disclosure, filed on February 16, 2024, and currently pending resolution, involves a customer dispute claiming that McFeeley recommended an unsuitable Oil and Gas investment. This allegation has significant implications for investors, as it raises concerns about the advisor’s due diligence and suitability practices.
The details of the case, as reported on McFeeley’s FINRA BrokerCheck profile, indicate that the claimant is seeking damages amounting to $######. The outcome of this case could have far-reaching consequences for both the advisor and the firm, as well as for investors who have entrusted their funds to McFeeley and Lincoln Financial Advisors Corporation.
Investment fraud and bad advice from financial advisors are unfortunately common occurrences. According to a Forbes article, the Federal Trade Commission (FTC) reported that consumers lost more than $5.8 billion to fraud in 2021, with investment scams ranking as the second most common type of fraud.
Understanding the Allegation
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In simpler terms, the allegation suggests that Michael McFeeley recommended an Oil and Gas investment that was not suitable for the client’s financial situation, risk tolerance, or investment objectives. 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.
According to the disclosure, the claimant alleges that McFeeley failed to conduct proper due diligence on the Oil and Gas investment before recommending it, and that the investment was not aligned with the client’s best interests. If proven true, this could constitute a violation of FINRA rules and a breach of the advisor’s fiduciary duty to their client.
The Importance for Investors
This case serves as a stark reminder of the importance of working with trustworthy and diligent financial advisors. Investors rely on the expertise and guidance of their advisors to make informed decisions about their investments, and when an advisor fails to uphold their fiduciary duty, the consequences can be severe.
Unsuitable investment recommendations can lead to significant financial losses, jeopardizing an investor’s financial security and long-term goals. It is crucial for investors to remain vigilant and to thoroughly research their financial advisors before entrusting them with their hard-earned money.
Red Flags and Recovering Losses
Investors should be aware of red flags that may indicate financial advisor malpractice, such as:
- Lack of transparency about investment risks and fees
- Pressure to invest in high-risk or complex products
- Failure to provide regular updates or account statements
- Inconsistencies between the advisor’s recommendations and the investor’s goals and risk tolerance
If an investor suspects that they have been a victim of financial advisor misconduct, they may be able to recover their losses through FINRA Arbitration. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Michael McFeeley and Lincoln Financial Advisors Corporation.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses through FINRA Arbitration. The firm operates on a “No Recovery, No Fee” basis, ensuring that clients can seek justice without upfront costs. Investors can contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-994-8066.
As the case against Michael McFeeley unfolds, it serves as a timely reminder for investors to remain proactive in monitoring their investments and the conduct of their financial advisors. By staying informed and working with reputable professionals, investors can better protect their financial futures and hold accountable those who breach their trust.
