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
Recovered for Elderly Victim in Ponzi Scheme Case $3.8 Million
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
Michigan Churning Fraud
Churning is a common type of broker misconduct that can affect investors in Michigan. Churning generates commissions for the stockbroker without benefiting the investor; in fact, many investors lose significant money due to churning. If you or someone in your family suffered serious economic losses due to churning, or excessive trading in an account, please contact an attorney at Meyer Wilson. Our award-winning law firm exclusively handles investor claims and class/mass actions. We may be able to secure financial compensation for your losses due to Michigan churning fraud.
Why Choose Us for Michigan Churning Fraud?
- Our law firm has access to resources that could be invaluable to your claim. We have strong connections with expert witnesses, mediators, and state and federal securities regulators nationwide.
- Our lawyers have been representing clients in investment fraud claims for over 20 years. We have a 99% success rate, with over $350 million in settlements and judgment awards won for past clients.
- Our Michigan churning claim attorneys accept these cases on a contingency fee basis. If your case does not end in financial compensation, you will pay nothing for court costs and attorney’s fees.
Defining Churning in Michigan
Churning is an industry term for excessive trading. It occurs when a securities broker trades on a client’s account to generate commissions, not to benefit the client with suitable trades. Churning violates the U.S. Securities and Exchange Commission (SEC) Rule 15c1-7. It is an illegal type of broker misconduct that could lead to significant losses for the investor. You might be able to tell a broker is churning your investment account by watching for a few red flags.
- Unusually frequent notifications of trading in your account
- Excessive confirmation forms for transactions
- Lack of documentation regarding an investment
- A declining account in an upward-moving market
- An account that is declining too swiftly in a downward-moving market
Any suspicious activity on your account or by your stockbroker could be a red flag for excessive trading or another form of misconduct. If you recognize the signs of churning, speak to an attorney at Meyer Wilson right away. Immediate action could prevent further economic losses. Our attorneys can help you take a stand against a fraudulent financial advisor, stockbroker or firm in Michigan.
Elements Necessary to Prove a Churning Claim
During a civil claim against a broker for churning, the burden of proof will rest with your side of the case – the plaintiff’s side. Hiring an attorney from Meyer Wilson could help you with the burden of proof. We know how to collect evidence, hire expert witnesses and take other steps to prove the necessary elements for a claim.
- Control of the account. First, the broker must have had control over your investment account at the time of excessive trading. The broker must have been responsible for trading, not you. This could mean express or implied control.
- Excessive or unreasonable trading. Second, the investor must be guilty of excessive or an unreasonable amount of trading, according to what would be suitable for you and your account. If a reasonable and prudent broker would not have made the same trades, the broker may be guilty of churning.
- Scienter. Finally, your lawyer must demonstrate the broker’s intent to churn your account. Evidence must be present proving the broker intentionally defrauded you or committed excessive trading with a reckless disregard for your best interests.
A lawyer from Meyer Wilson could help you prove your case through determining factors such as turnover ratio. This is the total amount of purchases your broker made in your account, divided by the account’s average monthly equity. Annualizing this ratio will give a number of trades that is reasonable for the specific investor. An excessive amount over this number could be evidence of churning.
Contact an Attorney About Churning Today
If you suspect churning is what recently caused the financial losses in your account, please do not hesitate to contact us. The Michigan lawyers at Meyer Wilson may be able to help you file a claim for damages.
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
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.