In a recent development, a serious allegation has been made against Benjamin Howarth, a financial advisor associated with MML INVESTORS SERVICES, LLC (CRD 10409). The complaint, filed on March 18, 2024, alleges that in 2021, the complainant was misled by Howarth into investing in two annuities, which have since lost value and are subject to thousands of dollars in surrender charges. This pending customer dispute (Case #202403210211.N) raises concerns about the advisor’s conduct and its potential impact on investors.
The allegation’s seriousness lies in the fact that investors rely on the expertise and guidance of their financial advisors to make informed decisions about their investments. When an advisor allegedly misleads a client, it undermines the trust that forms the foundation of the advisor-client relationship. The case information suggests that the complainant invested in fixed and variable annuities, which are complex financial products that may not be suitable for all investors.
The potential impact on investors cannot be understated, as they may suffer financial losses and face unexpected surrender charges when attempting to withdraw their funds. This situation highlights the importance of thoroughly researching and understanding the risks associated with any investment before committing capital. Investment fraud and bad advice from financial advisors can have devastating consequences for investors, as evidenced by numerous high-profile cases in recent years.
Understanding the allegation and FINRA rule
Table of Contents
In simple terms, the allegation suggests that Benjamin Howarth misrepresented or failed to disclose important information about the two annuities, leading the complainant to make an investment decision that may not have been in their best interest. This conduct, if proven, would violate FINRA Rule 2111, known as the “Suitability Rule.”
FINRA Rule 2111 requires financial advisors to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as the customer’s age, financial situation, investment objectives, and risk tolerance. By allegedly misleading the complainant, Howarth may have breached his duty to provide suitable recommendations.
The significance for investors
This case serves as a reminder of the importance of investor vigilance and the need to ask questions and seek clarification when working with a financial advisor. Investors should not hesitate to request detailed information about the products being recommended, including potential risks, fees, and surrender charges.
It also emphasizes the role of regulatory bodies, such as FINRA, in protecting investors and holding financial advisors accountable for their actions. By filing a complaint, the investor, in this case, has taken an important step in seeking recourse and drawing attention to potential misconduct.
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 products and their risks
- Pressure to make quick investment decisions
- Recommendations that seem misaligned with the investor’s goals and risk tolerance
If an investor believes they have been the victim of financial advisor misconduct, they may be able to recover their losses through FINRA Arbitration. This process allows investors to seek compensation for damages caused by the advisor’s wrongdoing.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Benjamin Howarth and MML INVESTORS SERVICES, LLC. 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.
Investors who have suffered losses due to the alleged misconduct of Benjamin Howarth or any other financial advisor are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm operates on a “No Recovery, No Fee” basis, meaning clients only pay if a recovery is successfully made on their behalf. To discuss your case with an experienced investment fraud attorney, call Haselkorn & Thibaut‘s toll-free number at 1-888-885-7162 .
