Securities And Investment Fraud Attorneys
When you decide to have an investment firm manage and to hopefully grow your money, you expect them to give you accurate and professional information, suited to your specific circumstances. Nonetheless, some unscrupulous investment advisers and stockbrokers can take advantage of your trust, which could lead to the loss of your savings.
Regardless of whether the loss was a direct result of conflict of interest, unsuitable investment advice, or investment fraud, you may find yourself facing the loss of your retirement income. But you don’t have to despair, securities and investment fraud attorneys are specialized in helping victims of stockbroker misconduct, broker fraud, and unsuitable recommendations to recover their losses.
Breaching the Fiduciary Duty
Financial advisors or brokers have some specific duties that they must uphold for their clients, including putting the financial needs of the investor first. In case this duty is breached, the investor can rightfully claim for compensation. The securities industry regulation stipulate that stockbrokers and financial advisers are prohibited from taking part in any manipulative or deceptive practices, since such behavior can be detrimental to the investors. In case your broker used misconduct, fraud, or other forms of manipulation without putting your best interest first and therefore cost you losses, then it could constitute a breach of fiduciary duty.
Types of Investment Fraud
Proper allocation of assets is one of the elements of any successful portfolio. In case your broker or advisor doesn’t diversify your assets properly, you may end up suffering significant losses.
A stockbroker may engage in excessive activities for a variety of reasons, but it’s mainly so that they can generate additional commissions. This is treated as a form of misconduct, which could warrant a claim from the investor.
For many investors, buying on margin can be quite profitable. However, it’s also very risky, and can result to an increased risk for losses.
Churning involves excessive trading for the sole purposes of financial gains. This practice often hurts the investors, but usually benefits the brokers. Investment fraud attorneys can help you determine if your advisor traded your assets excessively.
Some financial advisors can engage in deceitful or manipulative practices, and advice their client based on false information. In case this is what happened, you can file for a securities fraud claim.
Undisclosed Conflict of Interest
Brokerage firms sometimes enter into agreements with mutual funds. The revenue sharing agreements between the two firms often creates conflicts of interest, which you as the investor need to know about.
Whenever financial advisers and brokers engage in any form of misconduct, and can use various practices to cover their mistakes such as omissions and misinterpretations. Your broker should fulfill their duty of putting your best interest first, and this includes being honest and open at all times. Purposeful omission or concealment of the truth to clients is usually considered a misconduct.
Stockbroker mediation and stockbroker arbitration are some of the best ways to get your money back. These are ideal for those investors who have lost their investment through the misconduct or investment fraud from a registered broker, working under a registered financial institution or brokerage firm.
How an Investment Fraud Lawyer Can Help
Whether your broker recommended to you a risky investment before explaining all of the risks involved, or if the broker made trades without your consent or understanding, don’t hesitate to take action as soon as you can. Overall, the sooner you act, the better it will be for your case