Financial advisors are the trusted professionals that investors rely on heavily for guidance as they navigate the often twisted roads of financial decisions. But what happens when this trust is violated? What happens when these professionals fail to uphold their principles and, in turn, cause investors significant financial loss? Such is the case of one Joseph McManus of PRUCO SECURITIES, LLC., currently under the watchful eye of the well-established national investment fraud law firm, Haselkorn & Thibaut.
Understanding the nature of the case
According to a customer dispute lodged against Mr. McManus on the 19th of September 2023, the complainant alleges that the financial advisor gave flawed advice which resulted in his policies lapsing. Just picture that! The estimated loss for the customer is around $13,588.57. This case is still under investigation. What a mess!
Let’s break this down a little. To make it clear, Jospeh McManus, who has been registered with PRUCO SECURITIES, LLC. (CRD 5685) as a broker, investment advisor, and insurance agent since March 16, 2018, is been accused. The allegation is pretty serious, as it signifies a breach of fiduciary duty. The case unique identifier is 6907731 in case you’re curious.
Decoding the relevant FINRA rules
For those who might not be familiar, the Financial Industry Regulatory Authority (FINRA) is a major player in the US financial market. It’s a non-governmental organization that ensures its member brokerage firms and exchange markets toe the line.
In regards to this case, the allegation against Mr. McManus suggests that he could have violated the rules set by FINRA by providing poor advice leading to the lapse of his client’s policies. This could be seen as a breach of FINRA Rule 2111, famously known as the Suitability Rule. Essentially, this rule stipulates that advisors must believe that any transaction or investment strategy they are presenting to a customer is suitable for the said customer. It all boils down to having the interest of clients at heart.
Why investors should pay attention
As Investors, it is critical that we are conscious of who we entrust with our hard-earned money. Failing to do due diligence in choosing and dealing with financial advisors, as exemplified in this case, can lead to disastrous financial consequences.
It’s good to know that there are regulatory bodies such as FINRA and law firms like Haselkorn & Thibaut in place to uphold a sense of justice in the financial world. When instances like these arise, we are reminded of the crucial role they play. As Investors, it’s important that we are always vigilant and aware of our protections.
Be particularly aware of signs of financial advisor malpractice, like regular buying and selling of securities (also known as churning), unsuitable investment recommendations, and opacity in fees and commissions. Believe me, they can be red flags!
If you find yourself in a situation where you suspect that your financial advisor has practiced malpractice, don’t just sit on it. FINRA Arbitration is a platform where you can file claims against your advisors or brokerage firms. Also, clinics like Haselkorn & Thibaut specialize in helping you recover losses. With a solid track record, the clinic provides a “No Recovery, No fee” policy. You can reach them at 1-800-856-3352 for a free consultation.
To wrap it up, this case serves as a stark reminder of the crucial need for vigilance and accountability within the financial advisory sector. We must remember to always safeguard our rights as investors and be aware of protective measures in place. Safeguarding our financial wellbeing largely requires trust but trust, as they say, is earned.
Joseph McManus of Pruco Securities Investigated by Haselkorn & Thibaut for Fraud