Recovering Losses Caused by Investment Misconduct.
Call Today 888.390.6491

Recovering Losses Caused by Investment Misconduct

Information Center
Asset Allocation
Breach of Fiduciary Duty
Derivative Securities
Excessive Activity
Failure to Execute
Failure to Supervise
False Information
KGTA Investigation
Margin Trading
Misrepresentation and Omissions
Patricia Miller Fraud
Ponzi and Pyramid Schemes
Private Placements
Stockbroker Arbitration
Stockbroker Mediation
Subprime Litigation and Mortgage Scams
Unauthorized Trading
Undisclosed Conflicts of Interest

Do I Have a Claim?

Ask David Meyer

I would like to learn more about recovering my losses caused by investment misconduct. I trusted

with my investments and lost


name is:

My email is:

Please email me or call me back at:

as soon as possible.

Live Support - Click to chat with us!
Library » Rogue Brokers and Ponzi Schemes: You May Have a Failure to Supervise Claim

Rogue Brokers and Ponzi Schemes: You May Have a Failure to Supervise Claim

If you have fallen prey to a rogue broker, or if you have been reeled into a Ponzi scheme, you may be able to sue the brokerage firm for the misdeeds of the individual broker. Although the individual broker may have been the one that defrauded you, the brokerage firm is required to have systems in place to supervise the actions of their individual brokers. If your broker turned out to be a scam artist, you may have a failure to supervise claim.

FINRA rules state that a brokerage firm must have reasonable systems and procedures in place to monitor employees and protect against investment fraud. Each firm must keep a written copy of its policies at each office that is designated an office of supervisory jurisdiction, and also must designate a supervisor. These FINRA rules require compliance with the following (as examples):

  • Pre-Hire screening. This is essentially to check the agent's background. Has the agent changed firms often? Does he or she have a disciplinary history?
  • Yearly review and inspection. Each year, the individual brokers with a firm should participate in a meeting to discuss their compliance with FINRA rules. In addition, each individual office should be inspected to detect and prevent violations that may lead to investment fraud.
  • Monitoring communications of individual brokers. This covers both communications with existing customers, and communications with potential customers, such as advertising.
  • Monitoring customer information and transactions. This is often monitored by a computer system that will alert a supervisor to suspicious activity.
  • Training and licensing. A firm should monitor that its individual brokers are licensed to sell securities, and are current on required training.

If you've lost money due to broker misconduct, a failure to supervise claim may be the only way to attempt to recover your losses. If you believe you have a claim, or if you have questions about securities fraud, contact the securities arbitration attorneys with Meyer Wilson for a free case evaluation.

Awards & Memberships
The Best Lawyers in America Martindale Hubbel AV Peer Review Super Lawyers Avvo Rating Million Dollar Advocates Forum Best Lawyers Best Law Firms Lawyer of the Year
Do You Have a Claim?

Call Today 888.390.6491

Contact us by email

Stay connected:
Contact Info

Meyer Wilson

Investment Fraud Attorney

Toll-Free: (888) 390-6491


© 2015 All Rights Reserved

Ohio Office:
1320 Dublin Road, Suite 100
Columbus, OH 43215
Get Directions [+]
Los Angeles Office:
2029 Century Park East, Suite 1400
Los Angeles, California 90067 Get Directions [+]

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.