Is Your Financial Advisor a Crook?

April 21, 2009 — -- Over the weekend, I read a New York Times article that scared the hell out of me as a financial planner.

The reason?

It forced me to look deep within myself and ponder what I could be capable of doing at my very worst. That's not a comfortable topic to consider, but it's something I and other financial advisors must confront, given recent events.

The reality is that current and would-be clients have to be asking themselves, "Who can I trust?" And once in a while, we in the financial industry should ask ourselves, "Why should clients trust us?"

Looking for financial advice? Click here to send David your questions and they might end up as a topic for his next column.

The article that gave me a scare concerned the alleged misappropriation of client funds by a financial planner in Purchase, N.Y.

New York Times personal finance columnist Ron Lieber wrote about the case from a first-person perspective as a client of Matthew Weitzman, the planner accused of removing millions of dollars from client accounts. Weitzman's lawyer, Marc Mukasey, told the Times: "Matt Weitzman has not been charged with a crime or any violations. We're looking forward to a resolution of this matter that satisfies everybody."

As a personal finance columnist, Lieber wrote, "I thought I knew what I was doing. So if I can get mixed up in something like this, trust me, it can happen to anyone."

Lieber said his close review of his accounts showed none of his money was missing, but it's apparent the experience has left its mark on him. I know Lieber on a professional level, and that may be one reason his experience struck a chord in me.