Vernon Litigation files two FINRA arbitration claims involving an LPL Financial Advisor's concentrated recommendations in Fisker stock

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Oct 11, 2024, 12:54 ET

NAPLES, Fla., Oct. 11, 2024 /PRNewswire/ -- Vernon Litigation and Attorney Kristian Kraszewski recently filed two FINRA arbitration claims on behalf of retirees from Marco Island, FL. The claims were filed against LPL Financial, LLC, and allege that a financial advisor (LPL office in Ansonia, CT) (CRD#2392225) mismanaged our clients' savings causing almost a million dollars in damages from concentrated stock positions in Fisker. Our clients were told that allegedly the broker himself was also heavily invested in Fisker. The alleged misconduct by the Financial Advisor and a total lack of supervision by LPL are significant. There are three important violations that have caused our clients to lose their irreplaceable life savings:

Concentrated investing (putting too many eggs in one basket) is only for the most speculative investors and is not suitable for retail investors like our clients
Wholesale recommendations (recommending the same investment to many investors) violate FINRA rules, which require financial advisors to make investment recommendations tailored to each specific client's investment objectives, needs, and risk tolerance
It is a major conflict of interest for a financial advisor to recommend any investment that they own personally.

The financial advisor, who was not named in the complaint, has worked for LPL Financial since August 2005.

If you or one of your family members or friends have suffered losses investing with LPL, please contact one of our securities lawyers to discuss your rights by phone at 1-877-649-5394 or by e-mail at [email protected]. You can visit our website at http://www.vernonlitigation.com.

SOURCE Vernon Litigation Group