Understanding the Allegations
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In a world of complex financial transactions, it’s not uncommon for disputes to arise. One such case involves a customer dispute dated 6/27/2023. The allegations revolve around investment in an alternative product GWG Holdings, which was intended to be a small component of a larger diversified portfolio.
So, what went wrong? The company that issued the investment filed for Chapter 11 bankruptcy. As a result, the client is alleging insufficient due diligence, violation of Pennsylvania Unfair Trade Practices and Consumer Protection Law, breach of contract, common law fraud, breach of fiduciary duty, and negligence. The amount in question is a significant $105,000.
But is there merit to these allegations? Let’s delve deeper.
Why the Allegations Are Misplaced
Insufficient due diligence? This implies that the broker, Archibald McMichael, did not adequately research the company before recommending the investment. However, it’s important to remember that even the most rigorous due diligence cannot predict future events like bankruptcy.
Violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law? This law protects consumers from fraudulent or deceptive business practices. But can we conclusively say that this was the case here? Isn’t it possible that the company’s bankruptcy was an unforeseen event, not a result of fraudulent practices?
Breach of contract, common law fraud, breach of fiduciary duty, and negligence? These are serious allegations. But again, they hinge on proving that the broker knowingly recommended a risky investment, which can be a tall order.
Equity Listed (Common & Preferred Stock)? The investment was in an equity-listed product, which by its nature carry a certain level of risk. Could it be that the investor was simply not prepared for this risk?
These questions highlight the complexity of such cases and the difficulty in proving wrongdoing.
How FINRA Arbitration Can Help
Fortunately, there is a way for investors to seek redress. The Financial Industry Regulatory Authority (FINRA) offers an arbitration process, which can help investors recover losses. This process is faster and less formal than court proceedings, and it can result in the recovery of lost funds.
Haselkorn & Thibaut: Your Ally in Investment Fraud Cases
If you’re facing a similar situation, you don’t have to navigate the complex world of financial disputes alone. Haselkorn & Thibaut is a leading investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas.
Why choose Haselkorn & Thibaut?
- Experience: With over 50 years of experience, they have a deep understanding of investment fraud cases and how to navigate them successfully.
- Success Rate: They boast a 98% success rate, demonstrating their commitment to helping investors recover their losses.
- No Recovery, No Fee: Their policy ensures that you only pay when you successfully recover your investment.
- Free Consultation: You can discuss your case with them without any obligation. Simply call 1-800-856-3352 for a free consultation.
In conclusion, while the world of investments can be complex and fraught with potential pitfalls, there are resources and professionals available to help. Haselkorn & Thibaut is one such resource, offering experienced and successful assistance to investors who have suffered losses due to investment fraud.
