By profession, your stockbroker is held to very high standards when it
comes to handling your cash and helping you make wise investment decisions
that are in line with your financial goals and risk tolerance. Unfortunately,
there are many unscrupulous brokers out there who either bend the truth
or outright lie about investment opportunities in order to reel you in
and line their own pockets. And, as an investment misconduct lawyer, I
see these kinds of cases far too often.
Why Would a Stockbroker Exaggerate, Leave Out Information, or Lie?
When you work with a broker or brokerage firm, you expect to be working
with professionals you can trust. However, some unscrupulous brokers and
fraudsters are out to make money for themselves at your expense. Leaving
out important information that would help you make appropriate decisions
about an investment could be a ploy to make more on commissions or even
an attempt to drag you into a scam. Although crooked brokers only represent
a small percentage, these fraudsters often harm dozens—even hundreds—of
investors in their scams.
What Should I Do if I Think Something Sounds Fishy?
If you are hearing a pitch that sounds “too good to be true,”
it’s important that you take the time to get everything in writing
and verify what you have been told. Look into the background of your broker,
the brokerage firm, and the investment itself. Ask questions about how
the investment works, if your broker is paid to promote it, and what the
If you’ve already handed over your cash and suffered losses, or if
you otherwise suspect stockbroker misconduct, get in contact with an experienced
investment misconduct lawyer who can help you review your account and
determine if you have a case.