Financial malpractice is a serious allegation that can have far-reaching implications for both the accused and the victims. This article delves into a pending case involving a financial advisor named Marty Valade of Woodbury Financial Services, Inc. The case, which is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, involves allegations of excessive trading and charging of excessive fees. The alleged malpractice has resulted in a customer dispute, with the customer seeking $300,000 in damages.
Allegation’s Seriousness and Case Information
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The seriousness of this allegation cannot be overstated. The customer alleges that Marty Valade, a representative of Woodbury Financial Services, Inc., excessively traded their accounts and charged excessive fees. The case, which is currently pending, was filed on September 13, 2023.
Excessive trading, also known as churning, is a fraudulent practice that involves making unnecessary trades to generate commissions. The alleged excessive fees further compound the financial burden on the customer. The customer is seeking $300,000 in damages as a result of these alleged practices.
Marty Valade has been associated with Woodbury Financial Services, Inc. as a broker and investment advisor since January 3, 2001. The case is currently under investigation by Haselkorn & Thibaut.
Explanation in Simple Terms and the FINRA Rule
The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that oversees brokers and brokerage firms. It has a set of rules designed to protect investors.
One of these rules is Rule 2111, which requires brokers to have a reasonable basis for recommending a series of transactions, even if suitable when viewed in isolation, are not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile.
In this case, the customer alleges that Marty Valade violated this rule by excessively trading their accounts. This practice, also known as churning, involves making unnecessary trades to generate commissions.
Why It Matters for Investors
Investors trust financial advisors with their hard-earned money, expecting them to act in their best interests. When a financial advisor engages in malpractice such as excessive trading and charging excessive fees, it not only results in financial loss for the investor but also erodes trust in the financial services industry.
Investors should be aware of their rights and the rules that protect them. Cases like this underscore the importance of vigilance and seeking legal recourse when malpractice is suspected.
Haselkorn & Thibaut, with their over 50 years of experience and a 98% success rate, offers investors a reliable avenue for seeking justice and recovering their losses.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
There are several red flags that investors should watch out for, including excessive trading, excessive fees, and unexplained losses. If you suspect that your financial advisor is engaging in malpractice, it is important to seek legal advice immediately.
Haselkorn & Thibaut is currently investigating this case and offers free consultations to clients. The firm has a “No Recovery, No Fee” policy and can be reached at their toll-free consultation number, 1-800-856-3352.
Through FINRA Arbitration, a process designed to resolve disputes between investors and brokers, Haselkorn & Thibaut can help investors recover their losses. With offices in Florida, New York, North Carolina, Arizona, and Texas, the firm is well-positioned to assist investors across the country.
