Are You a Victim of Investment / Securities Fraud?
Meyer Wilson Can Help! Learn About Securities Fraud & Stockbroker Misconduct.
Our securities fraud and investment fraud lawyers are licensed in Ohio, California, and Michigan, and represent investors nationwide in securities arbitration and litigation claims. Some of the common investment misconduct claims we see involve breach of fiduciary duty, unsuitability, asset allocation, failure to supervise, negligence and unauthorized trading.
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When selecting an attorney to represent you in your investment loss case, consider their success. Many lawyers appear to know what they’re talking about, but do not have the results to back it up. Meyer Wilson recovered more than $350 million for clients.
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Stockbrokers & Brokerage Firms: Breach of Fiduciary Duty
Every broker or financial advisor has certain fiduciary duties he or she must uphold for their investors, such as putting their financial needs first. When this duty is breached, investors can file claims for compensation. According to securities industry regulations, financial advisors and brokers are prevented from participating in deceptive or manipulative practices, as this can be detrimental to the investors.
Has your broker used fraud, misconduct, or some other type of manipulation for their own benefit without considering your best interests? This could constitute breach of fiduciary duty and it can take many different forms.
Detecting the Different Types of Securities & Investment Fraud
In the investment and securities industry, there are many different types of fraud: hedge fund fraud, mutual fund fraud and auction rate securities fraud. These are all forms of misconduct, and investment firms should be held accountable for their breach of duty.
Some of the major types of broker misconduct are detailed below:
- Asset Allocation
The bulk of what comprises a successful portfolio is proper allocation of assets. If your financial advisor did not properly diversify your assets, you may have suffered significant financial losses.
Churning is the practice of excessive trading for the purpose of financial gain. Churning often hurts investors and benefits brokers. Meyer Wilson can help you determine if your broker traded your assets excessively.
- Excessive Activity
One of the main reasons a broker might engage in excessive activity is to generate additional commissions. This is a form of misconduct and could warrant an investor claim.
- Failure to Execute & Failure to Supervise
When an investor makes a request with their investment firm, the firm is required to comply in a timely manner. Investment firms are also required to provide adequate supervision so that investors do not suffer unnecessary losses.
- False Information
This is a form of deceit and manipulation on behalf of financial advisors. If you were advised based on false information, you could file a securities fraud claim.
- Margin Trading
Many investors find that buying on margin is extremely profitable. Margin trading can be risky though, and result in an increased risk for financial losses.
When investment firms act in bad faith, investors suffer. If you were harmed by negligence, there is hope. This firm could help you present a case for negligence on behalf of your financial advisor.
You have heard it said, “don’t put all your eggs in one basket.” When financial advisors do not diversify, it increases the risk of financial losses. If your broker over-concentrated on your investments, you could have a claim.
- Ponzi and Pyramid Schemes
How can you know if you were defrauded by a Ponzi or pyramid scheme? Meyer Wilson can help uncover fraudulent investment operations that harm investors.
- Private Placements
Investors who are sold unregistered securities may be able to take legal action. Private placements operate outside of the stock market, but they have recently become a subject of concern.
- Unauthorized Trading
Even if your broker has your best interests in mind, they must always ask your permission before buying or selling. Trading that is unauthorized can not only be harmful, it could warrant legal action.
- Undisclosed Conflicts of Interest
Sometimes, brokerage firms enter into agreements with mutual funds. These revenue sharing agreements can create a conflict of interest that you, as the investor, are entitled to know about.
Your broker or financial advisor must be intimately familiar with your financial situation. In fact, it is required by New York Stock Exchange Rule 405. If your broker doesn’t take the time to understand the history of your investments as well as your needs, they could make an unsuitable move.
Stockbroker Misconduct: How They Try to Cover It Up
When brokers need to cover up their misconduct, they can use deceitful practices such as misrepresentation and omissions. Your financial advisor is charged to fulfill their duty to you as an investor. Part of this includes being open and honest at all times. It is considered misconduct for an advisor to purposefully omit or conceal the truth to their clients as well as their supervising brokerage firm.
Getting Your Money Back
Stockbroker arbitration and stockbroker mediation are the best chances you have to get your money back. FINRA arbitration and mediation are available to investors who lost money through the fraud or misconduct of a registered broker working for a registered brokerage firm or financial institution.
Call an Investment Fraud Attorney at Meyer Wilson!
With more than 50 years’ combined legal experience, our investment fraud lawyers have the resources necessary to offer a comprehensive overview of your potential claim. We pride ourselves on our ability to listen and respond to our clients’ questions and concerns throughout the legal process.
Meyer Wilson only accepts cases that our firm is confident have sufficient merit to warrant the pursuit of damages. We do not charge our clients a fee for their consultations, and all of our cases are accepted on a contingency fee basis, meaning our firm earns a fee only if we recover losses for you.
Don’t hesitate to contact our firm today!