In a recent development, financial advisor Thomas Geissler of Ameritas Investment Company, LLC (CRD 14869) is facing allegations of recommending unsuitable and high-risk fixed annuities to clients. The complaint, filed as FINRA Arbitration 24-00095, is currently pending resolution and has brought attention to the importance of investor protection and the role of regulatory bodies like FINRA in ensuring fair practices within the financial industry.
The law firm of 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, Haselkorn & Thibaut has a proven track record of successful financial recoveries for investors. They offer free consultations to clients and operate on a “No Recovery, No Fee” policy. Investors can reach out to them through their toll-free consultation number: 1-888-885-7162 .
Understanding the allegations and FINRA rules
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The complaint against Thomas Geissler and Ameritas Investment Company, LLC revolves around the recommendation of unsuitable and high-risk fixed annuities to clients. Fixed annuities are investment products that provide a guaranteed stream of income over a specified period, often used as a retirement planning tool. However, they may not be suitable for all investors, especially those with a low-risk tolerance or short-term financial goals.
FINRA, the Financial Industry Regulatory Authority, is responsible for regulating the conduct of financial advisors and firms. FINRA Rule 2111 requires financial advisors to have a reasonable basis for believing that their recommendations are suitable for their clients, taking into account factors such as the client’s age, financial situation, investment objectives, and risk tolerance. Failure to adhere to this rule can result in disciplinary action and potential legal consequences.
The significance for investors
The allegations against Thomas Geissler and Ameritas Investment Company, LLC serve as a reminder of the importance of investor vigilance and the need for transparency in the financial advisory industry. Investors must be aware of the risks associated with various investment products and should feel empowered to ask questions and seek clarification from their advisors.
When advisors fail to prioritize their clients’ best interests or recommend unsuitable investments, the consequences can be severe. Investors may suffer significant financial losses, jeopardizing their retirement plans or other long-term financial goals. It is crucial for investors to thoroughly research their advisors, understand the products they are being offered, and regularly review their investment portfolios.
According to a study by the U.S. Securities and Exchange Commission, bad brokers are costing investors approximately $1 billion per year due to fraud, unsuitable recommendations, and other misconduct. This highlights the importance of working with reputable financial advisors and being vigilant in monitoring one’s investments.
Recognizing red flags and seeking recovery
Investors should be alert to potential red flags that may indicate financial advisor malpractice. These include:
- Recommendations that seem too good to be true or inconsistent with the investor’s risk tolerance
- Pressure to make quick investment decisions without sufficient information or time to review
- Lack of transparency regarding fees, commissions, or potential conflicts of interest
- Failure to provide regular updates or account statements
If investors suspect wrongdoing or have suffered losses due to unsuitable investment recommendations, they may have options for recovery. FINRA arbitration is a common avenue for resolving disputes between investors and financial advisors or firms. By filing a claim with FINRA, investors can seek compensation for their losses and hold advisors accountable for their actions.
Haselkorn & Thibaut is well-equipped to assist investors in navigating the FINRA arbitration process. With their extensive experience and commitment to client success, they can provide the guidance and representation needed to pursue recovery of investment losses.
As the investigation into Thomas Geissler and Ameritas Investment Company, LLC unfolds, it serves as a critical reminder for investors to remain vigilant, ask questions, and take action if they suspect misconduct. By working with experienced legal professionals like those at Haselkorn & Thibaut, investors can protect their rights and seek the justice they deserve.
