LABI Investments LLC and its principal advisor, Lisa Boisselle, have recently come under scrutiny following a significant enforcement action by the Arizona Corporation Commission. This case has captured the attention of both investors and industry regulators and has underscored the importance of conducting careful due diligence before entrusting one’s savings to a financial professional.
When Financial Advisors Recommend the Wrong Investments
Imagine putting your trust—and your life savings—into the hands of a financial advisor who assures you of secure, steady returns. This was the scenario faced by at least 16 investors who engaged with Lisa Boisselle through her firm, LABI Investments LLC (operating as Wealthwise). From November 2021 to April 2023, these investors collectively put nearly $1.4 million into cryptocurrency investments, following the guidance and recommendations of Boisselle.
These investments were directed into programs that promised significant growth, specifically NovaTech and HyperFund. The pitch sounded compelling: safe, secure, and poised to benefit from the rapidly expanding crypto sector. However, vital information was withheld. At the time these cryptocurrency programs were being marketed, both NovaTech and HyperFund were under regulatory investigation. In fact, NovaTech was subsequently charged by the U.S. Securities and Exchange Commission (SEC) for orchestrating a $650 million fraudulent scheme, while HyperFund faced similar allegations in connection with a $1.7 billion pyramid operation.
Despite these mounting concerns, investors were told their money was safe and that their investments would grow. Most troubling, according to the Arizona Corporation Commission, was the lack of disclosure about these ongoing regulatory investigations. Lisa Boisselle failed to inform her clients about enforcement activity and did not adequately explain the risks involved.
As Warren Buffett has wisely observed, “Risk comes from not knowing what you’re doing.” If investors are not fully informed about the nature and risks of an investment, they are exposed to avoidable harm. In this case, the damage was immediate. The Arizona Corporation Commission ordered $1,398,900 in restitution to the affected investors and imposed an additional $75,000 in administrative penalties. A permanent cease-and-desist order was issued for violations of the Arizona Securities Act and the Investment Management Act.
Sadly, the world of financial advice is not immune to such scenarios. According to Investopedia, investment fraud remains a persistent problem in the United States, with billions lost each year to misleading or outright fraudulent schemes. In some cases, clients may not realize their advisor has steered them wrong until well after the damage is done. Ensuring protection and recourse for investors is why regulatory oversight is so vital in the financial services industry.
Lisa Boisselle’s Professional Background and History
When evaluating any investment—or anyone giving investment advice—examining an advisor’s background is essential. Lisa Boisselle operated through LABI Investments LLC, conducting business under the name Wealthwise. For investors looking to research a financial advisor, the FINRA BrokerCheck database is one of the best starting points. BrokerCheck (also known as CRD) provides details such as an advisor’s background, employment history, qualifications, and regulatory disclosures. This tool is free and accessible to the public.
When reviewing the background of a financial professional, consider the following:
- Employment history: Look for frequent job changes, which can sometimes signal underlying issues.
- Regulatory actions: Any sanctions or disciplinary actions from the SEC, FINRA, or state regulators should trigger careful scrutiny.
- Customer complaints: Patterns of settled or pending complaints can reveal risky or problematic conduct.
- Criminal history: Convictions, especially those related to financial fraud, are significant red flags.
- Bankruptcy filings: Though not always disqualifying, they may call into question the advisor’s financial judgment.
The Boisselle case highlights exactly why this kind of research matters. Advisors who repeatedly recommend speculative or high-risk investments, especially without providing all necessary information, may display patterns that warrant further investigation.
Financial fact: According to a study published by researchers at the University of Chicago and the University of Minnesota, approximately 7% of financial advisors have records of misconduct, yet many investors do not review their advisor’s regulatory history before becoming clients.
| Advisor Red Flags to Check | Why It Matters |
|---|---|
| Undisclosed regulatory actions | May reflect a history of rule violations |
| Multiple customer complaints | Could indicate a pattern of bad advice or fraud |
| Criminal convictions (financial) | Points to untrustworthy conduct |
| Frequent firm changes | May signal ongoing compliance issues |
Supervision by a registered firm is also critical. Registered investment firms are required to supervise the activities of their advisors and ensure strict adherence to industry regulations. If this supervision breaks down, the firm itself may be held responsible for losses due to advisor misconduct. For more information about addressing concerns with a financial professional, visit Financial Advisor Complaints.
Understanding Securities Fraud in Plain English
Securities fraud can take many forms, but at its core, it involves making false or misleading statements—or failing to disclose essential facts—when recommending or selling investments. An apt analogy is buying a car from a dealer who neglects to mention known engine trouble.
In the Boisselle case, the Commission found clear violations of both the Arizona Securities Act and the Investment Management Act. These laws exist to promote transparency and to protect investors from deception. Additionally, file a FINRA complaint Rule 2111 (the fiduciary vs suitability standard Rule) applies. This rule requires that advisors must have a reasonable basis to believe their recommendations are suitable for clients, based on:
- Understanding the investment: Advisors need a full grasp of what they are recommending, including the associated risks.
- Knowing the customer: Understanding each client’s financial position, experience, and tolerance for risk is essential.
- Making suitable recommendations: Investments should be matched to the client’s needs and objectives.
In promoting programs like NovaTech and HyperFund as “safe, secure, accessible, and positioned for growth,” Boisselle allegedly failed to provide sufficient disclosure of the risks. As was later revealed, both programs functioned as Ponzi or pyramid schemes, using new investor funds to pay old investors while the promoters diverted substantial sums for personal gain.
Unfortunately, these schemes are more common than many realize. According to the U.S. Securities and Exchange Commission, pyramid and Ponzi schemes continue to target unsuspecting investors across a variety of sectors, including cryptocurrencies.
Consequences and Hard-Learned Lessons
The repercussions of the Boisselle case were severe: over $1.4 million in ordered restitution, significant penalties, and a permanent bar from the securities industry. Yet monetary judgments do not always ensure recovery; funds may have already been spent or irretrievably lost.
To minimize risk and avoid falling victim to poor investment advice, investors should always remember to:
- Conduct independent research: Utilize resources like FINRA BrokerCheck before investing.
- Question high-return promises: If a deal sounds too good to be true, it likely is.
- Insist on complete disclosure: Ask your advisor directly about all risks, fees, and any regulatory concerns.
- Diversify: Avoid concentrating your entire portfolio in one
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