Unfortunately, every year people are the victims of stockbroker negligence or investment fraud. As an investor, you rely upon your stockbroker or investment advisor to provide you with sound and prudent investment advice.
When investors suffer losses as a result of the fraud, negligence or other misconduct of financial advisors, the financial consequences can be significant and even tragic. The negligence or misconduct of an investor’s trusted advisor can result in the loss of thousands of dollars and in some cases the loss of an investor’s entire retirement savings.
Securities fraud and stockholder negligence may come in different forms, including misrepresentations, churning, unsuitability, unauthorized trading and theft.
Misrepresentations and Omissions.
Unscrupulous stockbrokers or investment advisors are liable to their clients when they lie or utter half-truths to their clients about an investment or when they fail to inform the client of material facts about an investment. With respect to risk disclosure, a broker or investment advisor has a duty to accurately and completely disclose the risks associated with an investment.
Churning involves excessive trading in securities by a broker in a client’s account. Churning occurs when a broker engages in buying and/or selling securities for the purpose of generating commissions without regard to the client’s best interests.
It is the duty of the stockbroker to recommend to the client only investments that are appropriate for the client, considering the client’s investment objections, risk tolerance, financial situation, age and investment experience. The stockbroker is liable to the client when the broker recommends investments which are not suitable or appropriate for the client.
Unauthorized trading occurs when a broker who is handling a client’s account on a non-discretionary basis engages in securities’ transactions in a client’s account without obtaining the client’s approval.
There are laws which protect victims of stockbroker misconduct and financial fraud and which may provide an avenue for recovering your investment losses. The lawyers at Lewis & Roberts are committed to recovering investor’s losses. Our attorneys have a breadth of experience handling cases involving securities fraud and broker misconduct, including the handling of arbitrations before the Financial Institution Regulatory Authority (“FINRA”).
Cases are generally handled on a contingency basis. There is no fee unless a recovery is obtained. We will evaluate the merits of your case and, where possible, help you recover your losses.