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Before making any transactions on your behalf, brokers must obtain signed
permission and authorization from their customers.
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One of the tactics that may be used in investment fraud is selling away.
Why do brokers use this tactic? Learn more about selling away and why
some brokers are motivated to do it.
Did you know that if your broker or financial adviser has prior complaints
or disciplinary actions, they may be listed in a public record database
you can access online in seconds? CRD numbers allow you to do your research
before trusting your money to a broker.
A significant trend in recent years has been stock brokers leaving brokerage
firms and becoming what are known as registered investment advisers. Learn
more about what these people do.
Fee-only accounts are managed by financial advisors that do not accept
any fees or commissions based solely on their product sale. “Fee
based” means they charge a fee in addition to collecting commissions.
As investment fraud attorneys, we are often surprised by the number of
“ordinary” investors who contact our offices because they
have been sold on the idea of investing on margin by their financial advisor.
The way your broker gets paid can give a lot of insight into your broker’s
decisions. Your broker could be making money through commissions and fees,
and while not every broker is trying to defraud you, this could be a temptation to do so.
It can be difficult for an inexperienced investor to join the game, especially
for fear of falling prey to an investment scheme. Familiarize yourself
with some common red flags to avoid this.
Trading on margin is extremely risky. If you lost money through this type of investment
because your broker failed to disclose the risks, you may have a claim.
While it can be easy to get caught up in finding information on your broker,
it is important to remember that your broker also has a responsibility
to know certain things about you as well.
There are three things you will probably have to show if you think your
stockbroker misrepresented an investment, including: proof that you lost
misrepresentation, proof that your broker actually misrepresented the investment, and proof
that you relied on your broker’s advice.
A broker CRD number is a number given to every registered representative
who is licensed to sell securities. It stands for Central Registration
Usually investors seek a well-balanced portfolio, which is why it can be
frustrating if your broker invested most of your funds into one asset
class. If this happened and you lost money, the brokerage firm could be
The main question that needs to be answered here is whether your broker’s
handling your portfolio met or failed to meet the accepted level of care.
Brokerage firms are responsible for their brokers. If a broker participates
in fraud or misconduct, the brokerage firm they work for could be held
liable for failing to supervise them.
It is part of a broker and brokerage firm’s duty to act in good faith
to you to disclose all potential investment risks. If they did not and
you lost money, you may be entitled to recover your losses.
It may feel like your broker just isn’t listening to you if they
make investment moves that just don’t fit your financial situation.
If this is happening, it might be more than your broker not listening
to you. It could mean intentional misconduct.
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Investment Misconduct Blog
FINRA has suspended former JP Morgan Broker Farid Morim from associating with any FINRA member firm after he failed to provide information that FINRA requested as part of its ...
The Massachusetts Securities Division Enforcement Section ("the Division") filed a complaint against broker Thomas T. Riquier on February 14, 2018 for violating the ...
Guarantees are a tantalizing way to spice up any offer, but there is no such thing in the investment world. The Financial Industry Regulatory Authority (FINRA) recently issued ...