Virtue Capital Management, LLC and former advisor Stuart Boxenbaum (CRD 1789726) are facing a serious customer dispute allegation, as reported on August 17, 2023. The complaint, filed by a client who inherited an account from a surviving spouse, raises concerns about the suitability and liquidity of a Real Estate Investment Trust (REIT) recommended by the advisor. This allegation not only puts the advisor’s practices under scrutiny but also has the potential to impact investors who have entrusted their financial well-being to Virtue Capital Management, LLC.
The gravity of this allegation lies in the fact that REITs, while offering the potential for attractive returns, can also carry significant risks, particularly in terms of liquidity. When an advisor recommends an investment that is not suitable for a client’s financial situation or risk tolerance, it can lead to substantial losses and undermine the client’s financial security. As a result, this complaint raises red flags for investors who have worked with Stuart Boxenbaum or Virtue Capital Management, LLC, prompting them to reassess their investment portfolios and the advice they have received.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Stuart Boxenbaum and Virtue Capital Management, LLC in connection with this allegation. 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. They offer free consultations to clients and operate on a “No Recovery, No Fee” basis. Investors who have suffered losses due to the actions of Stuart Boxenbaum or Virtue Capital Management, LLC are encouraged to contact Haselkorn & Thibaut at 1-888-885-7162 for a free consultation.
Understanding the FINRA Rule Violation
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The allegation against Stuart Boxenbaum and Virtue Capital Management, LLC centers around the recommendation of an unsuitable and illiquid REIT investment. FINRA Rule 2111, known as the “Suitability Rule,” requires financial advisors to have a reasonable basis for believing that a recommended investment or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as age, financial situation, risk tolerance, and investment objectives.
When an advisor recommends an investment that does not align with a client’s investment profile, it constitutes a violation of FINRA Rule 2111. In this case, the client alleges that the recommended REIT was unsuitable for the surviving spouse’s inherited account, likely due to its illiquid nature and the specific financial needs of the client. Such a violation can result in significant harm to investors, as they may find themselves holding investments that do not meet their financial goals or are difficult to sell when needed.
The Impact on Investors
The implications of this allegation extend beyond the individual client who filed the complaint. It serves as a warning to all investors who have worked with Stuart Boxenbaum, Virtue Capital Management, LLC, or any other financial advisor recommending REITs or similar investments. Investors must be vigilant in examining the suitability of the investments recommended to them, ensuring that they align with their financial objectives and risk tolerance.
Moreover, this case highlights the importance of working with a trusted and experienced financial advisor who prioritizes the best interests of their clients. Investors should regularly review their investment portfolios and question any recommendations that seem inconsistent with their goals or risk profile. By staying informed and proactive, investors can better protect their financial well-being and minimize the risk of falling victim to unsuitable investment advice.
Recognizing Red Flags and Seeking Help
Investors who have worked with Stuart Boxenbaum, Virtue Capital Management, LLC, or any other financial advisor should be aware of potential red flags that may indicate misconduct or malpractice. These red flags include:
- Recommendations of investments that seem inconsistent with the investor’s risk tolerance or financial goals
- Pressure to make quick investment decisions without adequate time for due diligence
- Lack of transparency regarding investment fees, risks, or liquidity constraints
- Difficulty accessing account information or receiving timely responses from the advisor
If investors suspect that they have been the victim of investment fraud or unsuitable investment advice, they should not hesitate to seek help. Haselkorn & Thibaut, with their extensive experience and successful track record, can provide invaluable assistance in navigating the FINRA arbitration process and pursuing recovery of losses.
By contacting Haselkorn & Thibaut at 1-888-885-7162 for a free consultation, investors can take the first step towards protecting their rights and holding financial advisors accountable for their actions. With their “No Recovery, No Fee” policy, investors can pursue justice without the added financial burden of upfront legal costs.
As the investigation into Stuart Boxenbaum (CRD 1789726) and Virtue Capital Management, LLC unfolds, it serves as a reminder of the importance of investor vigilance and the need for trusted legal guidance in the face of financial misconduct. By working together, investors and firms like Haselkorn & Thibaut can help create a more transparent and accountable financial industry, where the interests of clients are always put first.
