Kevin Ogden, a broker affiliated with Cetera Advisor Networks LLC, is facing serious allegations of unauthorized trading and significant investment losses. The complaint, filed by the representative of a deceased client’s estate, claims that Ogden executed transactions without proper authorization in 2017, resulting in substantial financial damages. As the case unfolds, it raises important questions about the responsibilities of financial advisors and the rights of investors.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg report, investment fraud cost Americans $1.4 billion in 2020 alone. It is crucial for investors to remain vigilant and thoroughly vet their financial advisors to avoid falling victim to such malpractice.
The Allegations Against Kevin Ogden
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According to the complaint, Kevin Ogden, while employed by Cetera Advisor Networks LLC (CRD# 13572), engaged in unauthorized trading on behalf of a now-deceased client in 2017. The claimant, who represents the client’s estate, alleges that these unauthorized transactions led to significant investment losses and other financial damages.
Understanding Unauthorized Trading
Unauthorized trading occurs when a broker executes transactions in a client’s account without obtaining prior consent or approval. FINRA Rule 2010 requires brokers to observe high standards of commercial honor and just and equitable principles of trade, which includes obtaining authorization before making trades on behalf of clients.
The Importance of Proper Authorization
Proper authorization is a critical component of the broker-client relationship. It ensures that clients maintain control over their investments and that their financial goals and risk tolerance are respected. When brokers engage in unauthorized trading, they breach the trust placed in them by their clients and expose investors to potential losses.
The Potential Impact on Investors
Unauthorized trading can have severe consequences for investors, including:
- Financial losses due to unsuitable or excessive trading
- Violation of the client’s investment objectives and risk tolerance
- Erosion of trust in the financial advisor and the investment industry as a whole
Investors who have suffered losses due to unauthorized trading may be entitled to recover damages through FINRA arbitration or other legal action.
Red Flags for Financial Advisor Malpractice
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Unexplained or excessive trading activity in their accounts
- Trades that are inconsistent with their investment goals or risk tolerance
- Failure to receive trade confirmations or account statements in a timely manner
If investors suspect unauthorized trading or other forms of misconduct, they should promptly report their concerns to their brokerage firm and consider seeking legal guidance from experienced investment fraud lawyers.
Recovering Losses Through FINRA Arbitration
FINRA arbitration provides a forum for investors to seek recovery of losses caused by broker misconduct, including unauthorized trading. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Kevin Ogden and Cetera Advisor Networks LLC.
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 operates on a contingency fee basis, meaning clients pay no fees unless a recovery is secured.
Investors who believe they may have suffered losses due to the actions of Kevin Ogden or other financial advisors are encouraged to contact Haselkorn & Thibaut for a free consultation at 1-888-885-7162 .
As the case against Kevin Ogden progresses, it serves as a reminder of the importance of vigilance in protecting one’s investments and the role that experienced legal counsel can play in holding financial advisors accountable for their actions.
