The seriousness of a recent allegation against Nicholas Ignatowski, a representative of Ameritas Investment Company, LLC and LPL Financial LLC, cannot be understated. The complaint, lodged on September 5, 2023, alleges that Mr. Ignatowski misrepresented the features of variable annuity contracts over a period from 2011 to 2023. This case, currently pending under the FINRA CRD number 2409399, is being closely monitored by Haselkorn & Thibaut, a national investment fraud law firm with a proven track record in helping investors recover their losses.
Understanding the Allegation and FINRA Rule
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The allegation against Nicholas Ignatowski is a serious one, as it involves the misrepresentation of variable annuity contracts. In simple terms, the customer alleges that the advisor did not fully or accurately disclose the features of these contracts, leading to potential financial loss. This is a violation of the Financial Industry Regulatory Authority (FINRA) Rule 2111, which requires that a broker-dealer or associated person “have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer.”
Mr. Ignatowski has denied the allegations, stating that the customer was well informed about the risks and material features of the variable annuities. He further asserts that the investments were suitable for the customer’s risk tolerance, time horizon, and financial objectives. However, these claims are currently under investigation.
Why This Matters for Investors
Investors must be able to trust their financial advisors to provide accurate and comprehensive information about their investments. This trust is fundamental to the investor-advisor relationship. When allegations of misrepresentation arise, it shakes the foundation of this relationship and can lead to significant financial loss for the investor.
Furthermore, such allegations can have broader implications for the financial industry. They can erode investor confidence and discourage individuals from investing, which can negatively impact the overall economy. Therefore, it is crucial that these allegations are thoroughly investigated and, if proven true, that the responsible parties are held accountable.
Red Flags for Financial Advisor Malpractice and Recovery of Losses
Investors should be aware of certain red flags that may indicate financial advisor malpractice. These include frequent trading, unauthorized transactions, and recommendations that do not align with the investor’s financial goals or risk tolerance. In the case of variable annuities, potential red flags could be an advisor’s failure to fully disclose the features, risks, and fees associated with the investment.
If investors suspect malpractice, they should consider seeking legal counsel. Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, has over 50 years of experience in investment fraud law and a remarkable 98% success rate. They offer a “No Recovery, No Fee” policy and free consultations, which can be arranged by calling their toll-free number, 1-800-856-3352.
Through FINRA Arbitration, investors may be able to recover their losses. This process provides a forum for resolving disputes between investors and their advisors or brokerage firms. Haselkorn & Thibaut is currently investigating the allegations against Nicholas Ignatowski and the associated companies, and is prepared to assist affected investors in seeking recovery.
