Allegations of unsuitable investment practices are a serious matter in the financial industry, and the case of Kevin Kelly, a broker and investment advisor currently with Avantax Investment Services, Inc., is no exception. The allegation, which is still pending as of August 31, 2023, was made by customers who claim that the investments they purchased were not suitable for their financial goals and needs. The alleged damages amount to $585,000. Kelly, who has been with Avantax Investment Services, Inc. since March 26, 2021, specializes in structured notes. His FINRA CRD number is 2293119, which can be verified through the BrokerCheck system.
Understanding the Allegation and the FINRA Rule
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The allegation against Kelly centers on the suitability of the investments he recommended to his clients. In simple terms, this means that the investments did not align with the clients’ financial situation, risk tolerance, or investment objectives. 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.
Why the Allegation Matters to Investors
The allegation against Kelly is of significant concern to investors, as it calls into question the integrity of the advice they receive from their financial advisors. Investors rely on their advisors to provide them with suitable investment recommendations that align with their financial goals and risk tolerance. When this trust is violated, investors can suffer significant financial losses.
Furthermore, the allegation against Kelly is not an isolated incident. According to the FINRA BrokerCheck report, Kelly has been involved in other customer disputes in the past, raising further concerns about his professional conduct and suitability assessments.
Red Flags for Financial Advisor Malpractice and Recovery of Losses
Investors should be aware of certain red flags that could indicate financial advisor malpractice. These include frequent and unexplained transactions, investments that do not align with the investor’s goals or risk tolerance, and a lack of communication or transparency on the part of the advisor. If investors suspect malpractice, they should consider seeking legal advice.
Investors who have suffered losses due to unsuitable investments or other forms of financial advisor malpractice may be able to recover their losses through FINRA arbitration. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the case against Kelly and Avantax Investment Services, Inc. The firm offers free consultations to clients and operates under a “No Recovery, No Fee” policy.
With over 50 years of experience and an impressive 98% success rate, Haselkorn & Thibaut has successfully recovered millions of dollars for investors. The firm specializes in FINRA arbitration, a dispute resolution process that allows investors to resolve disputes with their brokers or investment advisors in a fair, efficient, and cost-effective manner. Investors who wish to learn more about their legal options can contact Haselkorn & Thibaut at their toll-free number, 1-800-856-3352.
