Imagine you’re a retired person with limited knowledge of investing and putting your trust in a financial advisor to handle your future. Imagine your dismay and shock when you learn that your advisor is making unsuitable and illegal trades in your accounts, resulting in substantial losses. This isn’t a hypothetical situation, but rather the reality of a customer who was a victim of Matthew PlatnicoAn Allied Millennial Partners, LLC broker.
The Case of Matthew Platnico
According to the Financial Industry Regulatory Authority, Platnico engaged unauthorized and unsuitable trading in a customer’s account. The report says that Platnico advised a customer to use a high-risk option trading strategy, and also recommended it to her late husband. After the death of the husband, Platnico carried on executing this strategy without consent or knowledge from the customer. This led to 100 unsuitable, unauthorized and illegal options trades, causing substantial losses to the customer.
Platnico did not admit or deny the findings but consented to sanctions and findings. He received a $10,000 penalty and was suspended from all positions for nine months. But the question still remains: what happened to the customer who was harmed?
Recovering Losses through FINRA Arbitration
Thankfully, the cloud has a silvery lining. Investors have a recourse mechanism in place to recover FINRA arbitration – FINRA arbitrates their losses. What is it?
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FINRA arbitration offers a more streamlined and less formal alternative to court litigation. It offers an alternative to court litigation. avenue for investors Claims against brokers or firms of brokerage to recover losses due to unauthorized or unsuitable trades, or other types of misconduct.
Does it work? Can it help investors recover their losses? Answer: a resounding “yes”. In this specific case, Platnico’s member firm settled the arbitration claim of the customer with respect to the conduct at question. While the customer was not able to settle their arbitration claim, Platnico member firms were able to resolve it. details of the settlement The fact that the arbitration proceedings are private is a strong indication that FINRA can assist in recovering losses.
Protecting Your Investments
Such stories are a powerful reminder of the need to remain vigilant in our investment decisions. It highlights the need to actively participate in financial decisions and understand the risks.
The world of finance is a maze, but you can find your way through it with the proper knowledge, tools and mechanisms, such as FINRA Arbitration. Your hard-earned cash is at stake. Protect it.