In a recent case that has sent shockwaves through the investment community, Michael R. Hyser, a stockbroker formerly employed by Kestra Investment Services, LLC, is facing serious allegations of misconduct. The case, which is currently under investigation, centers around claims that Hyser engaged in unauthorized trading and other improper activities while managing client accounts.
For everyday investors, the implications of this case are significant. When entrusting their hard-earned money to a financial advisor, individuals expect their investments to be handled with the utmost care, diligence, and integrity. The allegations against Hyser serve as a stark reminder of the importance of thoroughly vetting any professional to whom you entrust your financial future. According to a study by the Bloomberg, investment fraud and bad advice from financial advisors cost Americans billions of dollars each year.
As legendary investor Warren Buffett once said, “Risk comes from not knowing what you’re doing.” This quote underscores the critical role that knowledge and understanding play in making sound investment decisions. By staying informed about the financial advisors they work with and the investments they make, individuals can better protect themselves against potential misconduct.
The case against Hyser is still unfolding, and the full extent of the alleged misconduct has yet to be determined. However, the mere existence of these allegations has already had a ripple effect throughout the investment world, causing many to question the trustworthiness of those tasked with managing their money.
Advisor Background and Complaint History
Michael R. Hyser, the financial advisor at the center of the current investigation, has a lengthy history in the investment industry. Prior to his most recent position at LPL Financial LLC, Hyser was employed by several other well-known firms, including Kestra Investment Services, LLC, Kestra Advisory Services, LLC, NFP Advisor Services, LLC, ING Financial Partners, Inc., and Pruco Securities, LLC.
A closer look at Hyser’s background reveals a troubling pattern of complaints and disciplinary actions. According to his FINRA BrokerCheck report, Hyser has been the subject of multiple customer disputes over the course of his career. These complaints allege a range of misconduct, including unauthorized trading, unsuitable investment recommendations, and misrepresentation of material facts.
While some of these complaints were ultimately settled or withdrawn, their mere existence paints a picture of an advisor with a history of questionable practices. As an investor, it is crucial to thoroughly research any financial professional before entrusting them with your money, paying close attention to their complaint history and any disciplinary actions taken against them. Financial advisor complaints can provide valuable insight into an advisor’s past behavior and potential red flags.
Understanding FINRA Rules and Consequences
The allegations against Michael R. Hyser implicate a number of FINRA rules designed to protect investors from misconduct. FINRA, or the Financial Industry Regulatory Authority, is a self-regulatory organization that oversees the activities of brokerage firms and their employees.
One of the key rules at play in this case is FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Unauthorized trading, which is one of the primary allegations against Hyser, is a clear violation of this rule.
Other relevant rules include FINRA Rule 2111, which requires brokers to have a reasonable basis for believing that an investment recommendation is suitable for a particular customer, and FINRA Rule 2020, which prohibits the use of manipulative, deceptive, or fraudulent devices in connection with the purchase or sale of securities.
Violations of these rules can carry serious consequences for brokers, including fines, suspensions, and even permanent bars from the industry. For investors who have been harmed by a broker’s misconduct, FINRA also provides a dispute resolution forum where they can seek to recover their losses.
Lessons Learned
The case of Michael R. Hyser serves as a sobering reminder of the risks inherent in working with financial advisors. While most advisors are honest and ethical professionals, there are always those who will seek to take advantage of unsuspecting investors.
To protect yourself, it is essential to do your due diligence before hiring a financial advisor. This means researching their background, complaint history, and disciplinary record using resources like FINRA’s BrokerCheck. It also means asking tough questions about their investment philosophy, fees, and potential conflicts of interest.
Another important lesson from this case is the need for investors to stay actively engaged in their own financial lives. Even when working with an advisor, it is crucial to monitor your accounts regularly, ask questions when things don’t seem right, and trust your instincts if something feels off.
As the famous saying goes, “trust, but verify.” By taking an active role in your financial life and working only with advisors who have earned your trust through a demonstrated track record of integrity and competence, you can help protect yourself from falling victim to misconduct.
Ultimately, the case of Michael R. Hyser is a cautionary tale for investors everywhere. By learning from the mistakes of others and taking proactive steps to safeguard your financial future, you can navigate the complex world of investing with greater confidence and security.
