As someone who has spent significant time digging into the worlds of finance and law, I’d like to shed some light on a recent case that has been making waves in the financial industry. Renowned broker Blake Robert Lynch, based at Securities America, Inc. in Omaha, NE, has caught attention for the wrong reasons.
The Allegations
Mr. Lynch finds himself the subject of some serious allegations. According to reports released by the Financial Industry Regulatory Authority (FINRA), he has supposedly violated “firm policies and procedures relating to customer signatures.” Regrettably, this sort of misconduct may lead to significant fallout for investors involved. For your convenience, I have attached a link to his records from FINRA BrokerCheck, (CRD#: 6650717).
Background: Blake Robert Lynch
Lynch entered the securities industry in 2017 and has worked with reputable financial giants such as Securian Financial Services, Inc., and Cetera Advisor Networks LLC. The current plight that he finds himself in puts a tarnish on what was once a promising career. The fact that these allegations were grave enough for his former employer, Cetera Advisor Networks LLC, to discharge him, is telling.
Breaking Down the FINRA Rule
We often encounter complex jargon in the finance sector, and it’s part of my job to simplify these for easier understanding. In this case, the application of the FINRA regulations is quite straightforward. Essentially, they mandate that before a broker-dealer can execute transactions in a customer’s account, they must first obtain the customer’s written authorization.
This regulation seeks to guarantee that the broker-dealer doesn’t make any unilateral investment decisions without the client’s consent. Doing so not only contradicts standard client-broker trust but can also potentially put both parties in a precarious position.
Consequences & Lessons Learned
The consequences for this violation can be quite severe, for both the broker and the investors involved. As Warren Buffet once wisely said, “It takes 20 years to build a reputation and five minutes to ruin it.” This situation serves as a stark reminder for us all.
Ever mindful of the repercussions of poor financial advice, let’s consider this sobering statistic: a 2016 study revealed that an estimated $17 billion is lost annually by American investors due to bad financial advice.
As we wade through these turbulent waters, we must remember to stay vigilant and ask questions. Make sure your adviser provides clear, tangible evidence of your authorization for any transaction made. The industry can be treacherous, but by staying informed and cautious, you can navigate it effectively.
Remember, an informed investor is the best defense against financial misconduct.
