Investment fraud is a serious allegation that can have devastating financial consequences for investors. Recently, a customer dispute has emerged against Tyson Allred, a broker and investment advisor currently affiliated with LPL Financial LLC (CRD 6413). The case, which is still pending, was filed on September 5, 2023, and revolves around an investment that was allegedly misrepresented to the client.
The Seriousness of the Allegation and Case Information
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The customer’s representative alleges that Allred made specific assurances that the chosen investment involved protected principal and a guaranteed 2.75% return after two years. However, the customer has since suffered significant financial losses, with the dispute amounting to a staggering $998,131.88.
Allred, who has been with LPL Financial LLC since January 17, 2023, specializes in Unit Investment Trusts. Prior to joining LPL, Allred was affiliated with U.S. BANCORP INVESTMENTS, INC. The case is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm with a track record of helping investors recover losses from financial malpractice.
Understanding the Allegation and the FINRA Rule
In simple terms, the customer’s representative alleges that Allred made false promises about the safety and returns of an investment. This is a serious violation of the Financial Industry Regulatory Authority (FINRA) Rule 2111, which requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer.
By allegedly assuring the customer that the investment would protect the principal and yield a fixed return, Allred may have violated this rule. Investors can check the status of any registered broker or brokerage firm on BrokerCheck.
Why It Matters for Investors
Investment fraud can lead to severe financial losses for investors. When brokers or advisors misrepresent the risks and returns of an investment, they not only violate FINRA rules but also breach the trust that investors place in them. This case underlines the importance of vigilance and due diligence when dealing with financial advisors.
Investors should be aware that they have the right to seek legal recourse in cases of investment fraud. Firms like Haselkorn & Thibaut can provide invaluable assistance in these situations, with their extensive experience and a high success rate of 98% in recovering losses.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
Investors should be aware of certain red flags that may indicate financial advisor malpractice. These include unexplained losses, aggressive sales tactics, and promises of guaranteed returns. In this case, the alleged assurance of protected principal and a fixed return could be seen as such a red flag.
If investors suspect malpractice, they should immediately contact a reputable investment fraud law firm. Haselkorn & Thibaut offers free consultations to clients and operates on a “No Recovery, No Fee” policy. They can be reached at their toll-free consultation number, 1-800-856-3352.
Investors can also file a complaint with FINRA, which can lead to arbitration. FINRA Arbitration is an effective way for investors to recover losses resulting from investment fraud. In fact, Haselkorn & Thibaut has successfully represented numerous clients in FINRA Arbitration proceedings.
Investment fraud is a grave matter, and investors should not hesitate to seek legal help if they suspect they are victims. With over 50 years of experience and offices in Florida, New York, North Carolina, Arizona, and Texas, Haselkorn & Thibaut is well-equipped to assist investors nationwide.
