Conflicts of Interest Violations

In business law, a conflict of interest occurs when an individual’s personal interests override their professional obligations. Employees have a fiduciary duty towards their employer or any other organization they are vested in.

Therefore, when an employee or stockbroker puts their personal gain before the company’s, they are breaching their loyalty. This is because their business decisions are likely to be influenced by these gains, which can have minor to catastrophic impacts on investors.

A stockbroker misconduct lawyer can represent you in a civil suit to pursue any losses you might have suffered from a broker’s conflict of interest. As an investor, you can also protect your venture from the ramifications of such a breach by understanding the different types of conflicts of interest violations.


In self-dealing, the party with a fiduciary duty conducts a deal on behalf of the principal, but for their own gains. The outcome tends to be a massive loss to the investor

For instance, a broker or bank may initiate a transaction but only because they have a personal interest, and not because it’s an ideal opportunity for the investor.   


Family Interests

Also known as nepotism, this type of conflict occurs when a worker puts their family interests before the interests of the company or any other beneficiary. 

A familiar example is when someone hires their sister, brother, cousin, niece, uncle, and so on just because of the relationship and not because they’re a good fit for the company.

Receiving Gifts

Some business jurisdictions prohibit receiving gifts from parties or businesses you’re dealing with. This is due to the likelihood of the other party later asking for favors that might be detrimental to the company.

Similarly, your stockbroker or investment firm should not receive such gifts, monetary or not, to avoid a future conflict of interest.   

External Employment

This type of conflict mostly occurs in industries where employees are allowed to hold more than one job. In such cases, if the interests of one employer override the other, the party might experience a conflict of interest.

Schedule a Meeting with a Broker Misconduct Attorney

If you suspect a conflict of interest with your broker or investment firm, consider talking with a lawyer and filing a complaint. A legal professional can protect your future by mitigating the conflict of interest or representing you in a civil suit to recover any damages you might have suffered from the violation. 

Work with Wolper Law Firm, P.A. for personalized legal consultation and charting the best course of action. Call 800.931.8452 or send us a message through the contact form below to get started. 

Attorney Matthew Wolper

Attorney Matthew WolperMatt 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 (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]