How to Recognize Signs of Stockbroker Misconduct
Losing money in an investment opportunity or on the stock market is never an easy loss, but what if you discover that you only suffered these losses because your stockbroker was acting in bad faith.
Stockbroker misconduct is fairly common in the securities industry, but there is something you can do about it when you suffer these losses. Continue reading to learn more about some of the most common signs that your broker may be defrauding you and the steps you can take to bring them to justice for their wrongdoing.
Common Signs of Stockbroker Misconduct
Many investors simply do not pay close enough attention to what is going on in their investment accounts. Although that certainly doesn’t make it acceptable for your stockbroker to take advantage of you, you may be able to catch your broker if you keep a close eye on your accounts.
There are some signs you can be looking for when reviewing your accounts each month, including:
- Unauthorized transactions
- Unexplained losses
- Seeing a loss where similar investments have seen returns
- Unfamiliar transactions
- Too many trades in your accounts (more than four annually)
- An overall decline in your accounts
- Unexplained gains
These are just a few of the signs that your stockbroker may be defrauding you or otherwise engaging in misconduct. If you have noticed any of these red flags, or have another reason to suspect your financial advisor may be taking advantage of you to further their own financial interests, contact an investment loss lawyer as soon as possible to discuss the individual details of your case.
What to Do About a Broker Who Has Defrauded You
After you have contacted an attorney, there are a couple of different options available, but the most common option is FINRA arbitration. The Financial Industry Regulatory Authority (FINRA) is responsible for overseeing stockbroker and financial advisor misconduct.
Here, a panel of arbitrators will hear both parties plead their case and then review the evidence before making a decision. Decisions handed down by FINRA arbitrators cannot be appealed, but what makes arbitration an attractive option is the ability to get a decision more quickly than if you were to try to bring your case to court.
Then, if the arbitrator’s decision is in your favor, your broker must pay you the ordered amount within 30 days of the decision. With court, it could be years, if ever, before you receive your money, if you even won.
Contact a Stockbroker Misconduct Lawyer
If you suspect that your financial advisor has been taking advantage of you and you aren’t sure where to turn, reach out to a dedicated stockbroker misconduct lawyer at Wolper Law Firm for help. You can give our office a call at 800-931-8452 or fill out the quick contact form we have provided at the bottom of this page when you are ready to schedule a free, no-obligation complaint review.
- Are Stockbroker Mistakes Considered Fraud?
- Former West Park Capital, Inc. and Laidlaw & Company LTD Broker, Bryan Mazliach, Investigated By FINRA For Alleged Violation Of FINRA Rules
- Former BMO Harris Financial Advisors, Inc. Broker, Lori Ann Sacco, Suspended Six Months By FINRA For Allegedly Altering Customer Account Documents
- Former Woodbury Financial Services, Inc. Broker, Jodie Lane, Suspended Six Months By FINRA For Allegedly Accepting Gifts And Becoming Beneficiary Of A Client
- Broker, Kimberley Schkade-Hill, Supsended by FINRA For Four Months And Fined $10,000 For Allegedly Having Clients Sign Documents In Blank
- LPL Financial LLC Broker, Matthew Clason, Is The Subject Of An SEC Enforcement Action For Allegedly Stealing Hundreds Of Thousands Of Dollars From A Client
- Former Capitol Securities Management Inc. Broker, Michael Rubel, Suspended By FINRA For 45 Days For Allegedly Engaging In Short-term Trading Of Unit Investment Trusts
- Recovering Your Investment Losses In Non-Traded Real Estate Investment Trusts And Business Development Companies
- Former Westpark Capital, Inc. Broker, Hary Datys, Suspended By FINRA For Fifteen Months For Allegedly Failing To Conduct Due Diligence Before Selling Promissory Notes
- Former Ameriprise Financial Services, LLC Advisor, Arthur Hoffman, Barred By FINRA For Allegedly Failing To Provide Documents In Relation To Investigation Into Outside Business Activities