Stockbroker Fraud and Misconduct
TYPES OF STOCKBROKER FRAUD CASES WE TAKE ON
There are numerous types of stockbroker fraud or investment fraud that our firm handles. The most common types of investment fraud cases we pursue include:
UNSUITABILITY OF INVESTMENTS
A broker is required to make investment recommendations that fit with an investor’s objectives, tolerance for risk, and needs, which requires a broker to be familiar with an investor’s portfolio and the investments or investment strategy the broker recommends. This requirement is called suitability. Often, investment losses are caused by unsuitable investment recommendations. Our attorneys have the experience to determine the best course for your unsuitability claim.
FRAUD, MISREPRESENTATION, OR INCOMPLETE INFORMATION
When a broker omits important facts, lies about an investment, or does not reveal conflicts of interests, investors can be damaged. Stockbroker fraud is common where a broker puts its own interests in front of those they should be serving.
LACK OF DIVERSIFICATION
Diversification is a basic, and important principle of investment. By recommending an investment portfolio that is diversified over a range of industries and investment types, investment risk can be limited. However, often brokers fail to diversify investment portfolios and overconcentrate investments in a particular sector or instrument; essentially gambling based upon their beliefs as opposed to the needs of the investor.
When a broker excessively buys and sells stocks for the sole purpose of creating more commissions and fees, this is considered churning. Large volumes of trades and losses unconnected to market fluctuations can be indications of broker churning.
FAILURE TO SUPERVISE
Brokerage firms and financial advisors have a duty to adequately supervise their brokers and ensure that those brokers are acting properly and abiding by securities laws and rules. When there is stockbroker fraud or negligence, the brokerage firm or advisor may also be liable.
Brokers who do not fulfill their duty of care to their investor clients may be liable for that negligence where it results in financial losses. This can include instances where there is also a breach of fiduciary duty by a broker, a failure to diversify, a failure to supervise, and other negligent conduct.
STOCKBROKER FRAUD ATTORNEYS
Brokers and financial advisors work from a position of trust and are expected to work for investors and look out for their financial interests. But all too often, this trust is broken. Brokers, and the firms they work for, may convince their investor clients to purchase investments which are not appropriate or suitable, which rely on incomplete or misleading information, or which fraudulently put the brokers financial gain ahead of their clients’.
When you suffer broker fraud or misconduct that results in financial loss, you need a specialized, high-caliber firm to protect your interests and hold those wrongdoers financially responsible. At Price Armstrong, our attorneys have the resources and expertise to represent investors in stockbroker fraud cases through FINRA securities arbitration, in the courts, and in mediation. We are dedicated to recovering your financial loss and to holding those involved responsible.
WHAT ARE MY RIGHTS IF I AM A VICTIM OF STOCKBROKER FRAUD?
Wrongful conduct occurs constantly and the investment field is particularly susceptible to fraud and negligence. All brokers and financial investment companies owe their investors a duty of making suitable recommendations, a duty of disclosure, a duty of adequate supervision, and a duty of good faith and fair dealing. As an investor, when your stockbroker or advisor does not fulfill their duties to you—or acts outright fraudulently or in their own financial interests—you have rights.
Among these is the right to:
- ask for and receive clear and complete information regarding the risk and obligations involved in your investment;
- to be given full disclosure of the commissions, fees, and charges you may incur with your investment;
- to be given recommendations and advise for your investments that are suitable for your particular needs and goals;
- to be given access to your funds at any time;
- and to be provided with truthful information about the background of the financial brokers who work with you or handle your investments.
EXPERIENCE MATTERS IN STOCKBROKER FRAUD CASES
If you have information relating to insider trading, Ponzi schemes, stockbroker fraud, or investment corruption, it is important to speak to one of our stockbroker fraud attorneys. At Price Armstrong, we work tirelessly for our clients – to protect them from harm and keep their case confidential. Call us today at (205) 208-9588 for a free initial consultation and review of your case.
STOCKBROKER FRAUD FAQS
Most investment negligence and fraud is not addressed through a case in court, but through FINRA arbitration. FINRA is the Financial Industry Regulatory Authority, a non-profit, non-governmental organization that establishes rules for the broker and brokerage firms. Usually, the contract you entered into with your investment broker mandates that any claims must be addressed through arbitration, and limits your ability to pursue financial fraud or negligence claims in court. Arbitration can be very different than pursuing a traditional court case, and FINA arbitration is further specialized subset. Hiring attorneys familiar with this process is important to maximizing your chances for a successful recovery when you’ve bene injured by broker misconduct.
The investments or retirement funds you have worked hard for and carefully set aside can be lost in a moment when dishonest brokers or brokerage firms engage in fraud or negligence. If you have experienced a loss in your investments that you believe may not be due solely to market changes, you may be able to recover those losses. Often, brokers use their position of trust to make recommendations that are unsuitable or take actions which line their own pockets. It can be difficult to know when your investment loss is due to misconduct or negligence given this position of trust and the investment expertise a broker purports to represent. Our attorneys are experienced at being able to evaluate all aspects of your investment loss and hold brokers and securities firms accountable. And, as always, our initial consultation and evaluation is free.
First, make sure that you keep all statements, communications, and other documents that you think may be relevant. Second, understand your rights. If you are a victim of financial fraud, you are protected under state and federal laws and regulations and have a right to recover your losses. Third, contact an experienced stockbroker fraud attorney to evaluate your potential claims, determine if your financial losses are the result of negligence or fraud, and pursue a case on your behalf. Fourth, an investor fraud attorney may also be able to recommend additional regulatory actions to ensure that others avoid similar fraud and that those responsible are barred in the future.
Stockbroker fraud and FINRA arbitration is a specialized area of the law where experience matters. You need to know that the securities fraud law firm you hire has the expertise and the resources to determine the best course for your case and to maximize your chances of winning on your terms. Our experienced team is here to get you started with a free consultation and never charges a fee until we recover for you.
CONTACT US FOR A FREE CASE EVALUATION
If you have suffered financially because of broker fraud or misconduct, contact the attorneys at Price Armstrong. We can help you seek justice and protect your rights throughout the process. Call us today at (205) 208-9588 for a free initial consultation and review of your case. Let us fight for you – call now!