The financial world was recently hit by a serious allegation. A customer dispute was filed on 8/25/2023 against Gary Costello, a broker and investment advisor currently affiliated with Truist Investment Services Inc. The client alleges unauthorized trading occurred in his account in 2023. This case, with the FINRA CRD number 6117388, is currently pending. This allegation not only tarnishes the reputation of the advisor and the company, but it also has significant implications for investors, particularly those who have entrusted their funds to these entities.
The Allegation Explained
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Unauthorized trading refers to the purchase or sale of securities in a customer’s account without prior consent or authorization. It is a serious violation of FINRA rules and can result in significant financial losses for the investor.
The FINRA Rule
In simple terms, the Financial Industry Regulatory Authority (FINRA) Rule 2010 requires all members to observe high standards of commercial honor and just and equitable principles of trade. This rule is designed to protect investors from unethical practices, including unauthorized trading.
Why It Matters for Investors
Allegations of unauthorized trading are a grave concern for investors. Such malpractices can erode investor confidence and lead to substantial financial losses. Investors rely on their financial advisors to act in their best interests, and any breach of this trust can have far-reaching consequences.
Red Flags for Financial Advisor Malpractice
Investors should be vigilant for signs of financial advisor malpractice. These can include unauthorized transactions, frequent and unnecessary trading (also known as churning), and investments that do not align with the investor’s risk tolerance or financial goals.
Recovering Losses
Fortunately, investors can recover losses through FINRA Arbitration. This is a streamlined and cost-effective process that resolves disputes between investors and their brokers or investment advisors.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the advisor and company. With over 50 years of experience and a 98% success rate, they have successfully recovered financial losses for investors. They offer free consultations to clients and operate on a “No Recovery, No Fee” policy. They can be contacted at their toll-free consultation number 1-800-856-3352.
In conclusion, while the financial landscape can be complex, investors should remain vigilant and informed. Serious allegations such as this one underscore the importance of trust and integrity in financial relationships. However, with the right help and legal guidance, investors can protect their interests and recover their losses.
