In a recent development, clients have alleged that Robert Burts, a registered representative of Synovus Securities, Inc., purchased a preferred stock without their authorization in 2022. The customer dispute, filed on February 13, 2024, was denied by the firm and the representative, who firmly refute the allegations.
The Allegations and the Firm’s Response
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According to the disclosure detail, the clients allege that Robert Burts purchased a preferred stock without their authorization in 2022. However, both Synovus Securities, Inc. and Burts deny the allegations, stating that the clients authorized the purchase of the security in question and that the purchases were made in 2019 and 2020, not 2022 as alleged.
Evidence Supporting the Firm’s Position
The firm and the representative argue that the clients received initial trade confirmations and were provided with over 100 account statements since the purchase, all of which showed the position in question. Furthermore, the clients cashed over ten dividend checks paid to them from the preferred stock. Despite having received statements, dividends, making additional purchases, and meeting with Burts, the clients did not raise any concerns between the purchases in 2019-2020 and the first written complaint received in 2024.
FINRA Rule 2111: Suitability
FINRA Rule 2111 requires that a broker-dealer or associated person have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer. This is based on the information obtained through reasonable diligence to understand the customer’s investment profile, including their age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, and risk tolerance.
In this case, if the purchases were indeed authorized by the clients and suitable based on their investment profile, as claimed by Burts and Synovus Securities, Inc., the allegations may not hold merit. However, it is important to note that investment fraud and bad advice from financial advisors can cause significant harm to investors, as highlighted in a recent article by Forbes.
The Importance of Investor Vigilance
This case highlights the importance of investor vigilance and the need to promptly review account statements and trade confirmations. Investors should closely monitor their investments and raise concerns or questions as soon as they arise. Delayed complaints can weaken an investor’s case and make it more challenging to resolve disputes.
Protecting Investor Rights
Investors who believe they have been victims of unauthorized trading or other forms of investment fraud should consider seeking legal guidance to protect their rights and explore potential avenues for recovery. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Robert Burts and Synovus Securities, Inc. They offer free consultations to clients and have a successful track record, with a 98% success rate and over 50 years of combined experience.
Investors can check the background and disciplinary history of their financial advisor or broker-dealer by visiting FINRA’s BrokerCheck.
Red Flags for Financial Advisor Malpractice
Some red flags that may indicate financial advisor malpractice include:
- Unauthorized trading
- Unsuitable investment recommendations
- Misrepresentation or omission of material information
- Excessive trading or churning
- Lack of diversification in a portfolio
Recovering Losses Through FINRA Arbitration
Investors who have suffered losses due to financial advisor malpractice may be able to recover their losses through FINRA arbitration. This process allows investors to seek compensation from their broker-dealer or financial advisor without going to court. Haselkorn & Thibaut has extensive experience representing investors in FINRA arbitration proceedings and can help clients navigate the process and pursue their claims.
For more information or to schedule a free consultation, investors can contact Haselkorn & Thibaut at their toll-free number, 1-888-885-7162 . The firm operates on a “No Recovery, No Fee” basis, meaning clients do not pay unless a recovery is secured.
As the case involving Robert Burts and Synovus Securities, Inc. unfolds, it serves as a reminder for investors to stay vigilant, review their accounts regularly, and promptly seek help if they suspect any wrongdoing. By working with experienced investment fraud attorneys, investors can protect their rights and work towards recovering any losses stemming from financial advisor malpractice.
