One of the Worst Things You Can Do When You Suspect Broker Fraud
| November 18, 2019
For whatever reason, you have reached the point where you suspect broker fraud. It could be that your broker made a transaction without your permission or recommended unsuitable investments. No matter what has led you to this place, it is imperative that you understand that there are certain actions you need to avoid.
What you should not do when you believe you are the victim of broker misconduct…
Send your broker a letter. It may seem logical that you would simply write your broker or brokerage firm a letter stating your concerns, but that is one of the worst actions you can take. A written letter could actually hurt your case, instead of helping it. The defense lawyers for the brokerage firm might use your letter during the arbitration hearing to discredit your claim. If you are considering writing a complaint letter, we strongly urge you to contact a broker fraud attorney first. This warning also applies to emails.
Work with your broker after you suspect something is wrong. If you continue to work with your broker, it can weaken your claim. Once you have reason to believe your broker caused you to lose money, stop working with him or her and contact a lawyer.
Agree to a recorded conversation with your broker. Your broker will be prepped on what he or she should say during the call. If you agree to a recorded discussion with your broker, you could make a statement that negatively affects your case.
What you should do when you suspect stockbroker fraud…
Contact a securities arbitration attorney. Broker misconduct cases are typically handled in mandatory securities arbitration. The brokerage firm will employ the help of sophisticated defense lawyers who will dispute your claim. It is important to hire your own lawyer.
Order a copy of our FREE consumer book. Broker fraud attorney David Meyer has written an informative book that contains valuable information regarding investor claims.