Imagine trusting your life’s savings with a financial advisor, expecting sound advice tailored to your unique situation, only to lose hard-earned money to unsuitable investment recommendations. This stark reality is what’s currently being investigated in the case of Lawrence Greenfield, former advisor with renown agencies ARETE Wealth Management, LLC and LPL Financial LLC (CRD 6413). Errors made with ‘alternative investments’ in 2017 now have an investor seeking a whopping $950,000 in damages.
Unpacking the Accusation & FINRA Rule 2111
At the heart of the matter lies an infraction of FINRA Rule 2111. This rule obligates financial firms and related individuals to recommend investment strategies suitable for the customer’s profile. And by that, we mean unique factors such as age, financial standing, investment hopes and fears, and risk tolerance—basically anything an investor may share about their financial vision.
The essence of the allegation? Greenfield is accused of peddling investment recommendations that didn’t jibe with the client’s financial means or degree of risk acceptance.
Why Should You, an Investor, Care?
If you’re an investor, this case isn’t just another headline. It’s a wake-up call about the importance of inspecting your investments and demanding alignment with your specific financial ambitions and risk comfort levels.
You’re entrusting your future to your financial advisor—complacency can’t have a place in this relationship. Being proactive, asking the tough questions, monitoring your investments, and even obtaining second opinions are all vital to protect your interests.
Clues & Recuperating From the Loss
It’s one thing to know you should be vigilant, but quite another to know what to look for. Certain ‘red flags’ can herald possible advisor misconduct—like abnormal frequency of buying or selling securities, unsolicited investment advice, changing account managers, or significant account losses.
If you smell something fishy, don’t delay in seeking legal help. The national investment fraud law firm Haselkorn & Thibaut, with locations from Florida to Arizona, is probing this particular case. With a whopping 98% success rate and over 50 successful years of chasing down investor justice through FINRA Arbitration, they are a strong ally.
Is litigation too slow, too costly, too formal? Try FINRA Arbitration. It’s a faster, less formal, much cheaper alternative that assists in recovering losses from investment fraud or malpractice. Haselkorn & Thibaut works on a ‘No Recovery, No Fee’ basis and provides free initial consultations. You can reach them on 1-800-856-3352.
Remember, as an investor, awareness and vigilance are your best defenses. Stay informed, ask questions, and don’t hesitate to seek help if you suspect misconduct. Let’s keep the investment world a safe and beneficial place for all.
Lawrence Greenfield of ARETE Wealth Management Investigated for Investment Fraud