Many people are paying attention to the financial landscape of Melbourne, Florida. One name is mentioned quite frequently – Jason Steven Valavanis. He’s a well-known broker currently affiliated with J.W. Cole Financial. Valavanis’ career has been a roller coaster ride, and the latest was settling FINRA arbitrations involving allegations of inappropriate investment advice.
Valavanis (also known as Jason Valavanis) has shown incredible resilience in spite of the financial instability. He has a rich and unique industry background, having worked with Metlife Securities, Metropolitan Life Insurance Company and LPL Financial Corp. Valavanis, despite the increased scrutiny in recent years has not received an official sanction from FINRA.
Jason Valavanis Accused of Allegations
Valavanis was recently criticized by two J.W. Cole Financial accused Valavanis making unsuitable investment recommendations in real estate investments trusts (REITs). This class of alternative investments is characterized by its illiquidity, and it is associated with significant risk.
The customers alleged that Valavanis had contravened FINRA suitability rules – Rule 2111 and others, which stress the need for brokers and their firms to have reasonable substantiation when recommending investment actions. After FINRA arbitrated, the cases were settled. One customer received $25,000. The other received $20,000.
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The duty to supervise
According to FINRA rule 3110 and 2090 brokers and their firms are required to follow guidelines when making recommendations for investments. It is important that they have a solid rationale to support the suitability of each suggestion for their customers.
Alternative investments that aren’t stocks, bonds or cash usually fall into five categories: hedge funds; private capital; natural resources such as oil and gasoline; REITs and infrastructure. They have lower liquidity than conventional investments, charge higher fees and are less regulated.
Recovering Investment Losses
Investors who feel they have lost money on investments due to Jason Valavanis’ actions or those of any other stockbroker may seek redress via FINRA arbitration. Financial industry safeguards ensure that investors’ rights are protected. This includes recourse to court in cases of broker negligence or misconduct.
A securities lawyer with experience can help you navigate the process and provide expert guidance. Most of these cases are handled on contingent fee basis. That means that legal fees will only be charged if compensation is recovered.
Transparency In Finance
The Financial Industry Regulatory Authority (FINRA) is responsible for the licensing and regulation of brokerage firms and stockbrokers. FINRA requires that firms and brokers disclose complaints from customers and regulatory sanctions. Also, they are required to disclose certain financial matters such as judgments, liens, personal bankruptcies and judgments.
Financial analysis and reporting are essential in the fast-paced and complex field of finance. Investors should stay informed about the Jason Valavanis investigation and other similar cases that are dominating the news.
It’s important to contact an experienced securities attorney immediately if you believe your account has not been properly managed. Do not hesitate to protect the hard-earned money you’ve invested.