High-Profile Naperville Stockbroker, John Freiburger, Faces Unspecified Damages in FINRA Arbitration

Navigating the world of investments can be quite challenging, especially when the credibility of your financial advisor comes into question. I’m here to help you cut through the complicated legal and financial terminology and shed light on a recent case involving Naperville, IL, stockbroker John Freiburger. You may know him through Kestra Investment Services, Kestra Advisory Services, Partners Wealth Management, Busey Bank, Park LLC, or his previous affiliation with NFP Securities.

A customer recently filed a FINRA arbitration against Mr. Freiburger in February 2024, accusing him of making an unsuitable investment recommendation in a direct participation program and limited partnership. As of the last update in April 2024, this is still a pending matter with unspecified damages. FINRA, or the Financial Industry Regulatory Authority, oversees this case due to its jurisdiction over stockbrokers and brokerage firms.

Financial advisors like Mr. Freiburger are expected to offer fair, competent recommendations that cater to their clients’ unique investment goals and risk tolerance. The recently filed complaint, however, raises questions about his suitability as a financial advisor and his commitment to his clients’ best interests.

Digging into John Freiburger’s Professional Background

For context, let’s delve into John Freiburger’s past and his relationship with his clients. He is registered under CRD 2163773 and primarily operates out of Naperville, IL. Despite the current customer dispute, Freiburger has not been formally sanctioned by FINRA.

Throughout his career, Mr. Freiburger had no previous customer disputes before this issue. However, this recent complaint raises significant questions about whether his investment advice aligns with his client’s best interests and if Kestra Investment Services and Kestra Advisory Services are effectively supervising him and their other stockbrokers.

Decoding the FINRA Rule and Terminology

For us to better understand the seriousness of the complaint against Mr. Freiburger, it’s important to understand the basics of FINRA rules and the nature of the alleged unsuitable investments.

FINRA Rule 2111, also known as the ‘Suitability Rule,’ requires that advisors like Freiburger have ample reason to believe a financial transaction aligns with the client’s investment profile before they recommend it. Factors considered include age, risk tolerance, financial profile, and investment experience.

The litigation filed against Mr. Freiburger alleges inappropriate recommendations centered around ‘Alternative Investments,’ including limited partnerships. These financial vehicles can be riskier than conventional investments and often carry higher fees. In layman’s terms, the customer accuses Mr. Freiburger of guiding him towards a financial path that may not align with his preferred risk tolerance and investment strategy.

Lessons Learned, Moving Forward

Dissecting this case sheds light on the crucial role of financial advisors in making sound, suitable investment choices. Warren Buffett once said, “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” Investing, much like life, significantly benefits from the right mentorship and guidance.

This case is a stark reminder of the consequences of inappropriate investment advice. It’s estimated that 17% of Americans have reported being victims of financial advisors’ unfair practices. It underscores the importance of proper vetting before trusting anyone with your hard-earned money.

Remember, you have resources available if you’ve experienced unjust treatment by a financial advisor. The Financial Industry Regulatory Authority (FINRA) is always ready to step in, rectify the situation, and you can always check an advisor’s credibility through their FINRA CRM number.

Invest smartly, stay vigilant, and always remember that in the realm of finance and investing, knowledge, paired with the right guidance, is power.

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