Common FINRA Arbitration and Investment Fraud Claims
There is sometimes a lot of confusion about what constitutes investment fraud and what does not. Many investors come to us having found a discrepancy on an account statement or after suffering serious investment losses, and, although they know something "fishy" is going on, they're not really sure how to pinpoint it. A mission of fraudsters is to make investment scams and securities fraud extremely difficult to spot, to the point that you will likely need a skilled investment fraud lawyer to help you sort it all out.Investment Fraud Comes Under Many Guises
The term "investment fraud" encompasses a wide range of activities, and fraudsters definitely have a lot of nasty tricks to disguise their fraudulent actions. As investment fraud attorneys, we often see claims that include:
- Unauthorized Trading. Your broker must have your consent to make trades on your account. If he or she does not have your permission and makes unauthorized trades anyway, then you may have a claim.
- Churning. In churning, the broker purposely makes an excessive number of trades on your account in order to generate commissions.
- Misrepresentation and Omission. Painting an investment in an enticing light can go too far when information is purposely left out or misrepresented. Your broker has a duty to provide you with complete and honest information about any recommended investment opportunity.
- Unsuitability, Negligence, and Breach of Fiduciary Duty. Although each of these claims has different legal nuances, the heart of each is similiar. Your broker has a duty to recommend investments and handle your account in a manner that is in your best interests and in line with reasonable standards for broker actions. When you suffer losses because he or she has not, then you may be headed for securities arbitration.