Investor Complaints Plague Larry Ware: Avantax, LPL Advisors Face Unsuitable Investment Claims

Investor Complaints Plague Larry Ware: Avantax, LPL Advisors Face Unsuitable Investment Claims

As a former financial advisor and legal expert with over a decade of experience, I’ve seen firsthand the devastating impact that unsuitable investment recommendations can have on investors. The recent complaints against Larry Ware, a Graham, North Carolina-based financial advisor with Avantax, doing business as Envision Wealth Partners, are a stark reminder of the importance of due diligence when entrusting your financial future to a professional.

According to FINRA records, Mr. Ware faces two pending investor complaints, both alleging that he recommended unsuitable structured product investments while representing LPL Financial. These complaints, filed in June 2024 and April 2023, respectively, claim unspecified damages and underscore the seriousness of the allegations against him.

Structured products are complex financial instruments that often combine features of debt securities and derivatives, making them difficult for the average investor to understand fully. When a financial advisor recommends unsuitable structured products, it can lead to significant losses and undermine the client’s financial goals.

The Advisor’s Background and Broker-Dealer

Larry Ware boasts an extensive career in the securities industry, with 26 years of experience under his belt. He is currently registered as a broker and investment advisor with Avantax, operating under the name Envision Wealth Partners. Prior to this, he was associated with several well-known firms, including LPL Financial, SunTrust Investment Services, NCF Financial Services, and Edward Jones.

Despite his long tenure in the industry, the recent complaints against Mr. Ware are not his first. His FINRA BrokerCheck report reveals a history of investor grievances, which potential clients should carefully consider before engaging his services.

Understanding FINRA Rules and Unsuitable Recommendations

FINRA, the Financial Industry Regulatory Authority, is responsible for regulating the securities industry and protecting investors. One of its key rules, FINRA Rule 2111, requires financial advisors to have a reasonable basis for believing that their investment recommendations are suitable for their clients, taking into account factors such as:

  • The client’s age, investment experience, and risk tolerance
  • The client’s financial situation and needs
  • The specific characteristics and risks of the recommended investment

When a financial advisor violates this rule by recommending unsuitable investments, they can be held liable for any resulting losses.

Consequences and Lessons Learned

The consequences of unsuitable investment recommendations can be severe for both the investor and the advisor. Investors may suffer substantial financial losses, while advisors face disciplinary action from FINRA, including fines, suspensions, or even permanent barring from the securities industry.

As the famous investor Warren Buffett once said, “Risk comes from not knowing what you’re doing.” This quote underscores the importance of investor education and the need for financial advisors to prioritize their clients’ best interests.

A sobering financial fact: according to a study by the University of Chicago, approximately 7% of financial advisors have a history of misconduct, and those with past offenses are five times more likely to engage in future misconduct than the average advisor.

The allegations against Larry Ware serve as a cautionary tale for investors, emphasizing the need for thorough research and due diligence when selecting a financial advisor. By staying informed, asking questions, and trusting your instincts, you can help protect yourself from falling victim to unsuitable investment recommendations.

Disclaimer: The information herein is derived from public sources and is provided "as is" without warranty of any kind. Legal matters may have subsequent developments, and market values may fluctuate. While we strive for accuracy, we make no representations about the completeness or reliability of this information. Readers should independently verify all content and seek professional advice as needed.
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