Stephen Bush, a broker and investment advisor associated with Capital Investment Group, Inc., is currently facing allegations from customers who claim that investments made in 2014 were unsuitable for their investment objectives and risk tolerance. The dispute, which is still pending, revolves around real estate securities and has been disclosed by LPL Financial LLC.
According to FINRA BrokerCheck, Stephen Bush (CRD #1898917) has been registered with Capital Investment Group, Inc. (CRD #14752) in North Carolina since August 31, 2018. The allegations against him are currently under investigation, and the outcome of the dispute is yet to be determined.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. Investopedia defines financial advisor malpractice as a situation where a financial advisor fails to provide services that meet the standard of care expected in the industry, resulting in harm to the client.
Understanding Suitability Requirements and FINRA Rule 2111
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The allegations against Stephen Bush center around the concept of suitability in investments. FINRA Rule 2111, known as the “Suitability Rule,” requires brokers and investment advisors to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for their client, based on the client’s investment profile.
The investment profile includes factors such as the client’s age, financial situation, investment objectives, risk tolerance, and investment experience. Brokers and advisors must carefully consider these factors when making investment recommendations to ensure that they align with the client’s needs and goals.
The Importance of Suitability for Investors
Suitability is a crucial aspect of investor protection. When brokers and advisors recommend unsuitable investments, investors can suffer significant financial losses. Unsuitable investments may expose investors to excessive risk, fail to meet their investment objectives, or strain their financial resources.
Investors rely on the expertise and guidance of their brokers and advisors to make informed investment decisions. When this trust is breached, and unsuitable investments are recommended, it can have severe consequences for investors’ financial well-being and future.
Recognizing Red Flags and Seeking Help
Investors should be vigilant in monitoring their investments and the conduct of their brokers and advisors. Some red flags that may indicate financial advisor malpractice include:
- Recommendations that consistently underperform or deviate from the investor’s stated objectives
- Excessive trading or churning of the investor’s account
- Lack of transparency or inadequate disclosure of investment risks and fees
- Pressure to make quick investment decisions or invest in unfamiliar products
If investors suspect that they have been victims of unsuitable investment recommendations, they should seek the assistance of experienced investment fraud attorneys. 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 Stephen Bush and Capital Investment Group, Inc.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. They offer free consultations and operate on a “No Recovery, No Fee” basis, ensuring that investors can seek justice without upfront costs.
Investors who believe they may have been affected by unsuitable investment recommendations from Stephen Bush or Capital Investment Group, Inc. are encouraged to contact Haselkorn & Thibaut at their toll-free number, 1-888-885-7162 , for a free consultation and to discuss their legal options.
