Investment fraud allegations are serious matters that can result in significant financial losses for investors. A recent case that underscores the gravity of such allegations involves financial advisor Peter Goffin and his former employer, Newbridge Securities Corporation. On September 14, 2023, a pending customer dispute against Goffin and Newbridge Securities Corporation was filed, citing failure to supervise, misrepresentation, negligence, and breach of fiduciary duty. The potential damages associated with this case amount to $91,000.
Understanding the Allegations
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The allegations lodged against Goffin and Newbridge Securities Corporation are severe and, if proven, may indicate a serious breach of trust. Failure to supervise refers to a situation where a brokerage firm or its supervisors do not adequately monitor the actions of their brokers. Misrepresentation occurs when an advisor provides false or misleading information to a client. Negligence refers to a failure to act with the level of care that a reasonable person would have exercised under the same circumstances. Lastly, a breach of fiduciary duty occurs when a financial advisor, who has a legal and ethical obligation to act in the best interest of their clients, fails to do so.
The FINRA Rule
These allegations fall under the purview of the Financial Industry Regulatory Authority (FINRA) rules. FINRA is a non-governmental organization that regulates member brokerage firms and exchange markets in the United States. The FINRA rule in question here is Rule 2111, which pertains to suitability. This rule requires that a firm 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, based on the information obtained through the reasonable diligence of the firm or associated person to ascertain the customer’s investment profile.
Why This Matters to Investors
Investors rely on their financial advisors to guide them in making sound investment decisions. When allegations of failure to supervise, misrepresentation, negligence, and breach of fiduciary duty arise, it shakes the very foundation of this trust. If proven, such actions can lead to significant financial losses for investors, which is why it’s critical for investors to be aware of these allegations and take appropriate action if they suspect they have been victims of such misconduct.
Red Flags and Recovering Losses
Investors should be vigilant for red flags that may indicate financial advisor malpractice. These can include unexplained losses, aggressive sales tactics, unauthorized trades, and a lack of clear, regular communication. If you suspect that you have been a victim of investment fraud, it’s crucial to take action promptly.
One avenue for recovering losses is through FINRA arbitration, a dispute resolution process that is often quicker and less expensive than traditional litigation. 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 Peter Goffin and Newbridge Securities Corporation. With over 50 years of experience and an impressive 98% success rate, Haselkorn & Thibaut has successfully helped investors recover their financial losses.
The firm operates on a “No Recovery, No Fee” policy and offers free consultations to clients. If you believe you may have been a victim of investment fraud, contact Haselkorn & Thibaut at their toll-free number, 1-800-856-3352, for a free consultation.
