Investors need to be aware of a serious allegation against Thomas Swan, a representative of WESTERN INTERNATIONAL SECURITIES, INC. The case, which is currently pending, was filed on 8/28/2023. The customer dispute alleges that Swan misrepresented the features of a financial product sold in 2020, causing a loss of $50,000 to the investor. This incident is recorded under the FINRA CRD number 1698430.
Understanding the Allegation and Its Impact on Investors
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Investors trust their financial advisors to provide accurate and honest information about the financial products they offer. A misrepresentation, such as in this case, is a serious breach of this trust and can lead to significant financial losses for the investor. Furthermore, it can erode the confidence of other investors in the company, leading to potential reputational damage for WESTERN INTERNATIONAL SECURITIES, INC.
The FINRA Rule and Its Simplified Explanation
FINRA Rule 2111, also known as the Suitability Rule, requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer. This rule is based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A violation of this rule, as alleged in this case, can lead to sanctions against the broker or the firm.
Why This Matters for Investors
Investors need to be aware that misrepresentation of a financial product’s features is a serious violation of FINRA rules. Such actions can lead to significant financial losses, as seen in this case. Additionally, it can erode trust in the financial advisory system, making investors wary of investing their hard-earned money.
Red Flags for Financial Advisor Malpractice and Recovery of Losses
Investors should be vigilant for signs of financial advisor malpractice, such as inconsistent information, pressure to invest in specific products, or a lack of transparency. If they suspect malpractice, they can take legal action to recover their losses.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating this case. With over 50 years of experience and a 98% success rate, they have successfully recovered financial losses for investors. They offer free consultations, and you can reach them at their toll-free number 1-800-856-3352. They operate on a “No Recovery, No Fee” policy, meaning you pay nothing unless they recover your losses.
Investors who have suffered losses due to the actions of their financial advisors can seek redress through FINRA Arbitration. This process allows investors to resolve disputes with their brokers in a fair, efficient, and cost-effective manner.
If you believe you have been a victim of financial advisor malpractice, don’t hesitate to contact Haselkorn & Thibaut for a free consultation. They are dedicated to helping investors recover their losses and restore their confidence in the financial system.
