Failure to Supervise

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Since 1999 our law firm has recovered more than $350,000,000 for victims of investment fraud and misconduct.
  • Jury Verdict Won Against Prudential Securities $262 Million
  • Recovered for 100-Year Old Widow $30 Million
  • Recovered in Retirement Losses $10 Million
  • Recovered for a Large Group of Individual Investors $6.5 Million
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  • Recovered for Elderly Ponzi Scheme Victim $3.2 Million
  • Recovered for More Than 50 Families of Ponzi Scheme in California $3.2 Million
  • Recovered for 35 Families in Northeast Ohio $3.1 Million
  • Losses Recovered for 20 Retirees $3 Million
  • Recovered for Retired Physician Against Major Wall Street Firm Prior to Filing FINRA Arbitration $2.5 Million
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Failure to Supervise

Did Negligence or Misconduct Cause You Financial Loss?

Financial and securities brokerage firms have a legal duty to supervise their brokers and their brokers' recommendations to clients to ensure compliance with and prevent violations of the rules of the security industry. When an individual broker is negligent or acts in an unlawful manner against the interests of the client and that client suffers damages as a result of such wrongdoing, the firm may be held liable for the investor's losses.

There are also instances in which a brokerage firm may be held liable for failure to supervise without the individual broker being held responsible for damages. Brokers are required to complete standardized training and pass exams administered by the FINRA. If it is found that a brokerage firm did not properly train a broker, did not ensure the broker obtained the necessary license, or furnished the broker with false information, the brokerage firm alone may be liable for damages caused by the broker's negligence or misconduct.

Failure to Supervise Claims

There are many scenarios in which you could have a failure to supervise claim against the brokerage firm. In many cases, the brokerage firm is solely responsible for financial losses.

Examples of failure to supervise claims include the following:

  • The firm failed to properly train the broker.
  • The firm did not confirm that the broker recommended and implemented a plan.
  • The firm provided the broker with false information about an investment sold to you.

A lot of investigation is needed in this type of broker fraud claim, which is why you need to ensure that the attorney you choose has the necessary experience and background to build your case.

Compliance Required with These FINRA Rules

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.
  • 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.

Contacting a Securities Fraud Attorney

Proving a failure to supervise claim requires a thorough investigation of the facts surrounding your claim and a diligent attention to detail. Fortunately, Meyer Wilson has spent decades of collective experience in one area: investment fraud law. Because our practice is devoted entirely to serving the victims of negligent and fraudulent stockbrokers, our skills are well-honed and perfectly suited to your case. We have the necessary resources and insight to aggressively investigate and pursue your case until it reaches a just conclusion. Our securities fraud attorneys won over $350 million for our clients because Meyer Wilson has the experience and skill to represent your interests effectively.

The Meyer Wilson Way

Results-Focused Representation
  • More than $350,000,000 Recovered
  • Voted Best Lawyers in America┬« for Ten Years Running
  • David Meyer is President of Public Investors Advocate Bar Association (PIABA)
  • Over a Thousand Investor Claim Cases Since 1999
  • Exclusive Focus on Investor Claims & Class/Mass Action Lawsuits
  • Deep Bench of Skilled Attorneys and Staff Members

TRUSTED BY OVER 1,000 INVESTORS

Meyer Wilson has represented over 1,000 individual investors in high-stakes claims across the country, and has recovered over $350 million on their behalves. See what former clients have to say about our team.

  • “I primarily worked with Courtney Werning throughout the process and she was informative and knowledgeable. I trusted and fully recommend Courtney and her team.”

    - S.R.
  • “The communication throughout the process was on par - and they took the time to indulge me with the various questions and opinions.”

    - R.G.
  • “What I truly appreciated was getting a great result for my Mom with limited involvement/stress on her.”

    - S.W.
  • “We went to arbitration with the other respondent and I got to see firsthand the level of professionalism and expertise the Meyer Wilson firm can deliver.”

    - D.V.
  • “Chad would take the time to call and talk with me. His explanations were always clear and concise. I also appreciate all the effort put into the details and statistics required to argue this case.”

    - P.N.
  • “Meyer Wilson was able to produce the results that we felt were obvious and warranted while several other firms and even state offices simply had trouble understanding let alone moving the case forward.”

    - B.K.
  • “My overall experience was positive and I would encourage anyone who even thinks they have been a victim of stockbroker misconduct to call David.”

    - S.T.
  • “Meyer Wilson represented me in a suit brought last year against my brokerage firm, securing a very fair and equitable settlement for me.”

    - R.G., M.D.
  • “Right from the start, you had the passion and desire to win this case for us. I have never worked with an attorney or firm as compassionate as yours. I would highly recommend your firm to anyone.”

    - G.A.
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