Allegations of financial malpractice are serious matters that require thorough investigation and appropriate action. One such allegation currently under investigation involves A. Roberson, a broker and investment advisor associated with MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD 7691). The case, identified by FINRA CRD number 2298900, dates back to events that transpired in July 2015.
Allegation’s Seriousness and Case Information
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The matter at hand involves the transfer of cemetery company assets to a different institution, authorized by the cemetery’s President and Trustee. Allegedly, the State of Georgia was not notified of the asset transfer, which, upon leaving Merrill, were purportedly used for personal gain by the President and Trustee. The Commissioner of Securities for the State of Georgia alleges that both Merrill and Roberson failed to supervise the customer’s accounts adequately between 1996 and 2015, particularly regarding the styling of the customer’s name on the accounts and the processing of instructions received in July 2015.
Explanation in Simple Terms and the FINRA Rule
In simpler terms, the allegation suggests that the broker and the firm failed to exercise due diligence and proper supervision over the client’s accounts, leading to potential misuse of assets. This alleged misconduct is in violation of the Financial Industry Regulatory Authority (FINRA) Rule 3110, which requires firms to establish and maintain a system to supervise the activities of each associated person to achieve compliance with securities laws and regulations.
Why it Matters for Investors
Such allegations, if proven true, can have serious implications for investors. It can lead to loss of assets, breach of trust, and potential legal complications. It underscores the importance of proper supervision and adherence to regulatory guidelines to safeguard investor interests.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
Investors should be vigilant for red flags such as unauthorized transactions, frequent and unnecessary trading, and unclear or misleading account statements. If you suspect malpractice, it’s crucial to seek legal help promptly.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating this case. With over 50 years of experience and an impressive 98% success rate, they specialize in helping investors recover losses through FINRA Arbitration. They operate on a “No Recovery, No Fee” policy and offer free consultations to clients. You can reach them at their toll-free number, 1-800-856-3352.
Investors should remember that allegations of financial malpractice are serious and warrant immediate action. Trustworthy legal representation, such as that provided by Haselkorn & Thibaut, can be instrumental in recovering losses and ensuring justice is served.
