Zachary Floberg, a broker and investment advisor with Merrill Lynch, Pierce, Fenner & Smith Incorporated, has recently settled a customer dispute, according to FINRA CRD number 5135060. The client alleged that Floberg failed to follow instructions from November 16, 2023, to February 8, 2024, resulting in a settlement of an undisclosed amount related to debt and government securities.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with many victims being elderly or inexperienced investors.
Understanding the Allegations and FINRA Rules
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The customer dispute against Zachary Floberg centers around the claim that he did not adhere to the client’s instructions regarding their investments in debt and government securities. As a registered broker and investment advisor, Floberg has a fiduciary duty to act in the best interests of his clients and follow their directives.
FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the client’s investment profile. This profile includes factors such as age, financial situation, investment objectives, and risk tolerance.
Additionally, FINRA Rule 3110 mandates that firms establish and maintain a system to supervise the activities of their associated persons, ensuring compliance with securities laws and regulations. Firms must also maintain written supervisory procedures to prevent and detect violations of these rules.
The Importance for Investors
The settlement of this customer dispute highlights the significance of working with trustworthy and reliable financial advisors who prioritize their clients’ best interests. Investors should be aware of their rights and the obligations of their advisors to provide suitable investment recommendations and follow their instructions.
When an advisor fails to adhere to these standards, it can result in significant financial losses for the investor. It is crucial for investors to regularly review their investment accounts, question any discrepancies or unauthorized transactions, and promptly report any concerns to their advisor or the firm’s compliance department.
By staying informed and vigilant, investors can help protect themselves from potential misconduct and ensure that their financial goals are being met through appropriate investment strategies. Investment fraud lawyers can also provide valuable assistance to investors who have fallen victim to fraudulent or negligent practices.
Red Flags and Recovering Losses
Investors should be aware of potential red flags that may indicate financial advisor misconduct, such as:
- Unauthorized or excessive trading
- Lack of communication or transparency
- Inconsistent or unexplained account performance
- Pressure to make quick investment decisions
If an investor suspects that they have been a victim of financial advisor malpractice, they 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 Zachary Floberg and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses. They offer free consultations and operate on a “No Recovery, No Fee” basis. Investors can contact the firm toll-free at 1-888-885-7162 to discuss their case and potential options for recovery.
As the legal and financial landscape continues to evolve, it is essential for investors to remain informed and proactive in protecting their investments. By working with experienced professionals and staying alert to potential misconduct, investors can safeguard their financial future and hold accountable those who violate their trust.
