LPL Financial Advisor, Shon Flaharty, Settles Customer Dispute Regarding Alleged Overconcentration For $350,000
The Wolper Law Firm is currently investigating claims against Shon Flaharty, a Financial Advisor at LPL Financial in Clearwater, Florida. Shon Flaharty has been in the securities industry since 1990s and previously worked at Bank of America Investment Services and Merrill Lynch.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in May 2018, Shon Flaherty resolved a customer dispute filed by a customer, who alleged “CORPORATE CUSTOMER ALLEGES OVER-CONCENTRATION AND UNSUITABILITY IN CONNECTION WITH AN ETF INVESTMENT.” The dispute was settled for $350,000.
For a full copy of Shon Flaharty’s FINRA disclosure report, click https://brokercheck.finra.org/individual/summary/2666498#disclosuresSection
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Concentrated positions present an increased risk for investors. While concentrated positions can result in above-average returns during an appreciating market, it can also cause accelerated declines during a down market. Customers must be advised of these risks and Financial Advisors should recommend strategies to help mitigate the risks associated with concentrated positions. There are a variety of strategies that can be utilized to mitigate risk even if the client is insistent on holding the concentrated position.
If you or someone you know was a customer of Shon Flaharty and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.