Selling away often stems from registered brokers who work in satellite offices for larger investment firms and have little oversight from or contact with their principal management. Selling away occurs when a broker or other registered financial advisor sells or solicits the sale of private securities not approved by the investment firm for which he or she works. Selling away is a breach of fiduciary duty that often results in substantial losses for innocent investors. Although each investor is unique, financial advisors and brokers have an obligation to recommend a well-diversified portfolio. Kiromic BioPharma Stock Loss Lawyer , diversification through stocks, bonds, and cash, can reduce risk without sacrificing returns. FINRA and the SEC believe asset allocation and diversification are critical and vital to building a well-constructed portfolio.
The Securities Act of 1933 regulates offers and sales of securities. It requires companies to inform their investors of important financial information and prohibits misrepresentation and other fraudulent activities while selling publicly traded securities. If you suffered losses because of your advisor or the brokerage firm’s fraudulent actions, you could file a lawsuit to recover those losses.
Investors Should Not Pay for Investment Fraud or Mistakes by Financial Advisors and Broker
In an arbitration, up to three arbitrators are chosen by the investors and advisers. These arbitrators then review the information provided, go over the evidence, listen to arguments, and issue an award or outcome. Though the results of a FINRA arbitration can be appealed to the courts, they are generally considered legally binding. The U.S. Securities and Exchange Commission handles hundreds of security fraud investigations every year. Many investigations result from tips or complaints made by the public. The most common violations involve stealing a customer’s securities or funds, misrepresenting important information about investments, insider trading, manipulating market prices of securities, and selling unregistered securities.
What the SEC Wants You to Know About Investment Fraud in 2022
Not every stock loss is a case of fraud or broker misconduct, but if you have even the slightest suspicion, you owe it to yourself to find out. At the Boca Raton Law Office of Russell Forkey, we protect the rights of individuals and businesses throughout Florida who have been the victims of broker fraud or misconduct. We are acutely aware of the threats of elder financial abuse and are prepared to handle a diverse set of claims. If you believe your portfolio has lost money due to the negligence of a stockbroker or brokerage firm misconduct, you have rights. Until the litigation is well under way, it is impossible to determine what recovery might be possible, whether by settlement or following judgment at trial. Securities cases not dismissed for legal reasons at the outset of the litigation usually settle.
The firms and brokers extoll the upsides of these products, painting them as a win/win investment. Some of these products are easily understood and explained, such as equity or bond mutual funds. However, problems arise when the firms and brokers attempt to supplement what was supposed to be just a simple investment. Our highly experienced and qualified lawyers will review your case and help you determine the best possible actions to take. Securities and Exchange Commission that investigates securities fraud.
Your commission-based relationship with your stockbroker allows them to make money while your returns are only reduced over a period of time. If your accounts have been traded in excess of four times over a period of a year, you can reasonably expect to move forward with your stock loss case. Before you can determine whether you have a case against your broker or financial advising company, you will need to understand exactly what constitutes stock market fraud. Your stockbroker or investment advisor is earning substantial fees while you are suffering losses or barely breaking even. The account statements you receive from your stockbroker or investment advisor don’t match your own records about the principal you’ve invested, your historical returns or the fees you agreed to pay.
Our Stock Loss Lawyers Can Investigate Account Churning & Find the Liable Parties
While arbitration is more structured than mediation , it is much less structured and less time-consuming than litigating a securities fraud dispute in court. Matt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority , American Arbitration Association (“AAA”), JAMS, and in state and federal court. The firm is led by Scott Silver, a former Wall Street defense attorney who has been representing customers in securities and investment fraud cases since 2002. Scott is admitted to practice in New York and Florida and the firm’s FINRA arbitration attorneys represents investors nationwide. Recovering money from investment losses or fraud can be difficult and take time.
Robert Wayne Pearce and his legal team has experience handling all types of investment-related disputes, and they are prepared to help you too. I was very happy with the communication between the legal counsel and myself. If I had any questions I could leave it if not directly and I would have an answer within 24 hours by either email or a courtesy phone call. Also, the quick resolution of the matter was something I appreciate very much. The Business Trial Group handles investment and securities cases on a contingency-fee basis, so you do not need to pay any fees upfront to fund your case.