Recently, a serious allegation has been brought to the attention of the financial world. A pending customer dispute alleges that a broker named Thomas Hamlin, associated with Somerset Securities, Inc., made an unsuitable recommendation for a client to purchase a private placement from iCap Equities. The dispute is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm with a 98% success rate in recovering losses for investors.
The Seriousness of the Allegation
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The allegation, filed on 9/21/2023, claims that Thomas Hamlin, a broker and investment advisor currently with Somerset Securities, Inc., made an unsuitable recommendation for the clients, Bertrand and Diana Poirier, to invest in iCap Equities’ private placement. Unfortunately, iCap Equities filed for bankruptcy on 9/12/2023, leading to a significant loss for the Poiriers, amounting to $355,000.
Understanding the Allegation and the FINRA Rule
In simple terms, an unsuitable recommendation refers to a situation where a financial advisor or broker recommends an investment that does not align with the investor’s financial situation, risk tolerance, or investment objectives. This is a violation of the Financial Industry Regulatory Authority (FINRA) Rule 2111, which 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.
Haselkorn & Thibaut, with over 50 years of experience in handling such cases, is currently investigating the allegations against Thomas Hamlin and Somerset Securities, Inc.
Why This Matters to Investors
This case serves as a stark reminder of the risks associated with investing, especially in private placements. It underscores the importance of due diligence and the role of financial advisors in providing suitable recommendations. When these standards are not upheld, investors can suffer significant financial losses.
Furthermore, it highlights the role of FINRA in regulating broker-dealers and protecting investors. FINRA arbitration can help investors recover their losses in cases of financial advisor malpractice.
Red Flags for Financial Advisor Malpractice
Investors should be aware of certain red flags indicating potential financial advisor malpractice. These include frequent and unnecessary trading, unauthorized transactions, overconcentration in a single investment, and recommendations that are inconsistent with the investor’s risk tolerance or financial objectives.
Haselkorn & Thibaut encourages investors who suspect malpractice to reach out for a free consultation. With their “No Recovery, No Fee” policy, investors can feel secure in pursuing a case.
Recovering Losses
Investors who have suffered losses due to broker malpractice can recover their losses through FINRA arbitration. Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, has a successful track record of helping investors recover their losses. With their impressive 98% success rate, they offer a lifeline to investors who have been wronged.
For a free consultation, investors can reach Haselkorn & Thibaut at their toll-free number, 1-800-856-3352.
