Stockbroker Fraud Lawyer

Do You Need a Stockbroker Fraud Lawyer?

Investment losses? Contact our stockbroker fraud attorneys at KlaymanToskes today at (888) 997-9956. We can help you recover your losses. We offer free confidential consultations. There is no obligations.

The stockbroker fraud lawyers at KlaymanToskes have the experience you can rely on to help you recover the investment losses that you have suffered due to the actions or inactions of your broker. Contact us today at (888) 997-9956 for a free consultation.

Don’t let a stockbroker’s negligence, fraud or misconduct jeopardize your financial future.

Your broker must act in your best interest. Failure to do so may breach this duty. When your broker’s actions or recommendations result in investment losses, you may have a claim for stockbroker fraud.

The good news is investment losses due to portfolio mismanagement, unsuitable recommendations, or fraud may be recoverable through FINRA arbitration.

Investment losses? We can help. Contact us today at (888) 997-9956 for a free consultation.

Generally speaking, the process involves filing a claim with the Financial Industry Regulatory Authority (FINRA) and representing the client in arbitration proceedings.

Do I Need a Stockbroker Fraud Lawyer for FINRA Arbitration?

While individuals can file a claim with FINRA on their own, hiring an experienced stockbroker fraud lawyer can significantly increase the chances of recovering losses.

Why?

When you file a FINRA arbitration claim seeking damages, those damages, if awarded, generally come from the broker and their brokerage firm. Naturally, both parties will want to defend themselves against allegations of fraud or misconduct.

Brokerage firms or brokers are generally represented by experienced lawyers who know how to use the arbitration process to their advantage. Even if you choose to represent yourself, you will be facing an attorney who possesses a deep understanding of the intricate nature of securities law and the FINRA arbitration process.

FINRA recommends that investors seeking to initiate a FINRA arbitration claim hire an experienced lawyer:

Source: https://www.finra.org/arbitration-mediation/how-find-attorney

Do you need a stockbroker fraud lawyer? Contact us at (888) 997-9956 for a free consultation to discuss your potential claim.

What is Generally Considered Stockbroker Fraud?

Stockbroker fraud is any action or inaction taken by a stockbroker (broker) that 1. violates securities laws, 2. is fraudulent or deceptive, or 3. only benefits the broker rather than the investor. Investors who suffer investment losses as a result of their broker’s fraud may be entitled to compensation.

Brokers found to have committed stockbroker fraud can face disciplinary action from FINRA, such as fines and suspension or revocation of their license. Investors who have suffered investment losses due to stockbroker fraud can take their case to arbitration through FINRA.

Generally speaking, the broker’s employer, which is often a large brokerage firm, will be held liable for all losses clients suffered as a result of their broker’s fraud.

All awards granted through FINRA arbitration are final and binding, meaning that there is no right to appeal the decision.

Give yourself the best chance at recovering your investment losses. Contact an experienced stockbroker fraud lawyer today for a free consultation.

The Most Common Forms of Stockbroker Fraud

Stockbroker fraud comes in many different forms. Regardless of the form, all forms of investment fraud involve an advisor or broker perpetrating fraud in order to benefit personally or financially.

Stockbroker fraud is unfortunately common, and recovery is possible through a FINRA arbitration claim.

From Q1 to Q2 in 2023, the Federal Trade Commission (or the FTC) has reported nearly 50,000 individual cases of investor fraud with an estimated $1.9 Billion in total losses.

Here are some of the most common types of investment fraud:

• Unsuitable Investments:
  • Financial advisors recommend options incongruent with investor needs, risk tolerance, or goals.
  • Violations of the “suitability” rule may lead to claims of negligence or FINRA sales practice violations.
• Excessive Trading (Churning):
  • Advisors profit from high account activity at the expense of investors.
  • Substantiation of claims requires demonstrating disproportionate trading relative to risk tolerance and goals.
• Misrepresentation and Omission of Material Facts:
  • Fraudulent presentation or concealment of information in investment recommendations.
  • Investors can pursue damages for intentional or reckless misrepresentation resulting in financial losses.
• Breach of Fiduciary Duty:
  • Concerns about conflicts of interest in financial advice.
  • Investors can seek damages for losses resulting from breaches of fiduciary duty through FINRA arbitration.
• Unauthorized Trading:
  • Securities traded without prior customer authorization in non-discretionary accounts.
  • Thorough review of the transaction timeline is essential for a FINRA arbitration claim.
• Mutual Fund Sales Violations:
  • Financial advisors obligated to recommend suitable mutual fund share classes.
  • Sales practice rules address issues like breakpoint violations and improper switching.
• Variable Annuity Switching:
  • Advisors must consider factors like age, income, and tax status before recommending changes.
  • Careful evaluation of replacement contracts and suitability is essential to prevent conflicts of interest.
• Excessive Markups/Markdowns:
  • Rule changes proposed by FINRA to align with contemporary securities markets.
  • Guidelines aim to ensure fair and reasonable pricing, considering various factors.
• Selling Away:
  • Advisors engaging in unapproved private securities transactions.
  • Brokerage firms bear the responsibility of monitoring and disclosing such activities.
• Broker & Advisor Negligence:
  • Firms fail to adhere to industry standards, resulting in investor losses.
  • Negligence claims underscore the need for responsible and prudent account management.
• Failure to Supervise:
  • Critical lapse for brokerage firms in overseeing financial advisors.
  • Utilizing technology and direct communication is crucial to prevent rule violations and safeguard investor interests.
• Margin Abuse:
  • Exposes investors to significant risks arising from excessive margin loans.
  • Advisors must exercise caution in recommending margin use and disclose associated risks.
• Over Concentration of an Account (Failure to Diversify):
  • Warns against excessive reliance on a single security or investment product.
  • Brokerage firms must disclose risks and recommend strategies to manage concentration.
• Conflicts of Interest:
  • Emphasizes the need for transparency in financial dealings.
  • Advisors and firms must disclose potential conflicts to clients, aligning with FINRA’s mandate for investor protection.
• Private Placements:
  • Involves non-registered securities sold through Private Placement Memorandums.
  • Brokerage firms must assess suitability for accredited investors and conduct thorough due diligence.
• 401(k) Plans Misconduct:
  • Fiduciaries’ obligations to act in the best interest of plan participants.
  • Failure to uphold obligations can result in legal liabilities and investor losses.

If you have fallen victim to any of the forms of stockbroker fraud mentioned above, you may have the right to pursue remedies for your financial losses.

The stockbroker fraud lawyers at KlaymanToskes can help you determine whether a broker has violated their duty to you and whether you may be able to recover your losses.

Our team of skilled securities lawyers has a proven track record of representing numerous clients in successful FINRA arbitration proceedings, resulting in over $600 million in recovered damages.

You can learn more about our firm here and schedule a free case evaluation to discuss your potential claim today. Contact us at 888-997-9956 for more information. We look forward to helping you protect your rights and obtain the compensation you deserve!

Signs Investors Should Look Out For About Their Brokerage Accounts

As an investor, there are a few signs that you should look out for if you believe you may have a claim against your broker. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encourage to contact our firm immediately if you have experienced any of the following:

• You have substantial losses in your investment accounts
• You notice unauthorized transactions in your investment accounts
• Your broker misrepresented investment opportunities, or failed to disclose details about investments
• You filed a complaint with your brokerage firm that has not been resolved
• Your broker is not returning your calls or emails

Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.

Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.

If you suffered losses with your broker, or have concerns regarding your investment portfolio, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.

How to Prove Stockbroker Fraud Caused Investment Losses

To establish yourself as a victim of stockbroker fraud and seek compensation for your losses, it is imperative to do the following:

1. Substantiate the negligence or misconduct of your broker.
2. Provide evidence that such negligence or misconduct directly led to your financial losses.

Simply put, there must be an action or inaction by your broker that directly caused you to lose money. This is known as “causation,” and it is an essential element in any stockbroker fraud case.

There are various strategies and evidence-gathering techniques that an experienced stockbroker fraud lawyer can utilize to build a strong case on your behalf. By working with an attorney, you can ensure that all necessary steps are taken to help achieve the best possible outcome for your case.

Speak with the Stockbroker Fraud Lawyers at KlaymanToskes

You’ve spent a long time building trust with your financial advisor and your broker, and we understand that placing your trust in someone else after feeling betrayed by them can be intimidating.

At KlaymanToskes, we are committed to helping investors and building a relationship of trust with our clients. We take the time to get to know you and your case, so that we can provide you with the most effective legal representation possible.

We won’t push you into a situation that you’re not comfortable with, and we’ll never move forward until you feel confident in your decision.

Chances are, if you find yourself with significant investment losses due to your broker or advisor, there may be other individuals that have been working with the same professional who may not yet be aware of the losses they may have incurred due to the broker’s misconduct.

Your actions could help protect other unsuspecting investors from potential financial losses.

Contact us today at 888-997-9956 for a free, no-obligation consultation with our experienced FINRA arbitration attorneys. We will review your case and determine if you have grounds to seek recovery of any losses caused by financial advisor misconduct or broker negligence.

We look forward to speaking with you.

What Makes the Stockbroker Fraud Lawyers at KlaymanToskes Different

At KlaymanToskes, we are champions of investors, helping investors to recover over $600 million*. With nearly 25 years of legal experience and a sole focus of representing investors in FINRA arbitration cases, our firm is an expert in FINRA arbitration.

Our stockbroker fraud attorneys have a unique understanding of the brokerage industry, having previously represented brokerage firms and brokers in defense work. Attorney Lawrence Klayman also has a background in economics and was a licensed stock broker. With this combined experience, KlaymanToskes has inside knowledge of the brokerage industry and their defenses giving us an advantage as we navigate your case.

The firm also has sophisticated research tools, such as a Bloomberg Terminal, which allows us to perform high-level research on brokerage firms, investment products and markets.

To learn more about FINRA arbitration, contact KlaymanToskes today at (888) 997-9956 or by email at lawrence@klaymantoskes.com.