In a recent development, Stonecrest Capital Markets, Inc. (the “Firm”) received a FINRA arbitration notice on February 28, 2024, from a client, Mr. [REDACTED], directed against registered representatives Edward Kasperavich (CRD#4970038) and Deborah Stackpole (CRD#4969850). The complaint lodged serious allegations of poor recommendation and advice concerning an investment made by Mr. [REDACTED] in GWG Holdings, LLC L-Bonds and Northstar Healthcare Income, Inc. The complaint highlights concerns regarding the quality of the recommendations and advice provided by the aforementioned registered representatives in relation to Mr. [REDACTED]’s substantial investment of $300,000.00 in GWG Holdings L-Bonds and a significant $90,000 loss in his investment in Northstar Healthcare Income, Inc. from 2019 to 2023.
This allegation is of utmost importance to investors, as it raises questions about the integrity and professionalism of the registered representatives involved. The substantial investment amount and the resulting loss underscore the potential financial impact on the client. Investors who have worked with Edward Kasperavich or Deborah Stackpole at Stonecrest Capital Markets, Inc. may need to reassess their investments and seek legal advice to protect their interests.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, the U.S. Securities and Exchange Commission (SEC) has reported a surge in fraudulent private placement offerings, highlighting the need for increased vigilance among investors.
Understanding the allegation and FINRA rule violations
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The complaint against Edward Kasperavich and Deborah Stackpole revolves around poor recommendation and advice related to investments in GWG Holdings L-Bonds and Northstar Healthcare Income, Inc. In simple terms, the client alleges that the registered representatives failed to provide suitable investment recommendations and guidance, resulting in substantial financial losses.
FINRA Rules, particularly Rule 2111 (Suitability), require registered representatives to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as age, financial situation, investment objectives, and risk tolerance. Violations of this rule can lead to disciplinary action by FINRA and potential legal consequences.
The importance of suitability for investors
The suitability of investment recommendations is crucial for investors, as it directly impacts their financial well-being. When financial advisors fail to consider their clients’ unique circumstances and risk tolerance, they may recommend investments that are not aligned with the clients’ best interests. This can lead to significant financial losses, as seen in the case of Mr. [REDACTED]’s investments in GWG Holdings L-Bonds and Northstar Healthcare Income, Inc.
Investors should be aware of their rights and the obligations of their financial advisors. They should regularly review their investment portfolios and question any recommendations that seem unsuitable or excessively risky. If investors suspect misconduct or inappropriate advice, they should promptly seek legal guidance to assess their options for recovery.
Red flags and recovering losses through FINRA arbitration
Investors should be vigilant for red flags that may indicate financial advisor malpractice, such as:
- Unsuitable investment recommendations
- Lack of diversification in the portfolio
- Excessive trading or churning
- Unauthorized transactions
- Misrepresentation or omission of material information
If investors suspect misconduct or have suffered losses due to poor recommendation or advice, they may be able to recover their losses through FINRA Arbitration. This process allows investors to seek compensation from their financial advisors or brokerage firms for damages caused by misconduct or negligence.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Edward Kasperavich, Deborah Stackpole, and Stonecrest Capital Markets, Inc. They offer free consultations to clients and have over 50 years of combined experience in successfully recovering financial losses for investors, with an impressive 98% success rate.
Investors who have suffered losses due to the misconduct of Edward Kasperavich, Deborah Stackpole, or any other financial advisor at Stonecrest Capital Markets, Inc. are encouraged to contact Haselkorn & Thibaut for a free consultation. They can be reached toll-free at 1-888-885-7162 , and they operate on a “No Recovery, No Fee” basis, meaning clients only pay if a recovery is successful.
