The seriousness of an allegation and its implications can never be overstated. This is especially true when it involves financial matters and investors’ hard-earned money. Currently, Haselkorn & Thibaut, a national investment fraud law firm, is investigating a case involving Steven Sabo and LPL Financial LLC.
Allegation’s Seriousness and Case Information
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On September 22, 2023, a pending customer dispute was lodged against Steven Sabo, a representative of LPL Financial LLC. The claimant alleges that Sabo made an unsuitable recommendation in 2013 to purchase an alternative investment. The claim is currently pending, with damages requested amounting to $70,000.
Sabo, who has been with LPL Financial LLC since May 3, 2007, denies all allegations of wrongdoing. He asserts that all alternative investment recommendations made to the claimant were suitable and within the claimant’s investment objectives. He further states that any losses in the claimant’s accounts were a result of unforeseeable market fluctuation and that the claimant was fully aware and understood the risks involved with her investments.
Explanation in Simple Terms and the FINRA Rule
The Financial Industry Regulatory Authority (FINRA) is an independent, non-governmental organization that regulates member brokerage firms and exchange markets in the United States. One of its key roles is to protect investors by ensuring that the securities industry operates fairly and honestly.
FINRA Rule 2111, also known as the Suitability Rule, requires that firms and associated persons 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 of the member or associated person to ascertain the customer’s investment profile.
Why It Matters for Investors
Investors entrust their money to financial advisors with the expectation that they will act in their best interest. When this trust is violated, it can lead to significant financial losses. An allegation of this nature is serious because it can indicate a potential breach of the advisor’s fiduciary duty to the investor.
Moreover, it is crucial for investors to understand that they have rights and recourses when such situations arise. They can seek the help of experienced investment fraud attorneys like Haselkorn & Thibaut to recover their losses.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
Investors should be aware of certain red flags that could indicate financial advisor malpractice. These include unsuitable investment recommendations, frequent buying and selling of securities (also known as “churning”), and failure to diversify investments.
If you suspect that you have been a victim of investment fraud or malpractice, you can seek legal help. Haselkorn & Thibaut is a national investment fraud law firm with over 50 years of experience and a 98% success rate. They offer free consultations and operate on a “No Recovery, No Fee” policy. Investors can reach out to them via their toll-free consultation number, 1-800-856-3352.
Through FINRA Arbitration, Haselkorn & Thibaut can help investors recover losses caused by investment fraud or malpractice. This form of dispute resolution is often quicker and less expensive than traditional litigation and can be an effective way for investors to recover their losses.
