Mutual Fund Misconduct: Here’s 3 Things You Need to Know

The last thing you ever expect is to suffer massive financial losses after investing in mutual funds. Every investment has some risk, but if you suffered losses, you may be able to recover them in arbitration before the Financial Industry Regulatory Authority (FINRA).

However, you can only win your complaint if you can show to the arbitrators that mutual fund misconduct occurred and your broker or brokerage firm is responsible for these losses. 

Below, we go into further detail about the top 3 things you need to know about investment losses caused by mutual fund misconduct and how a stockbroker misconduct lawyer can help.

What Are Mutual Funds?

First, it is important you understand what mutual funds are. These are professionally managed investment accounts that pool together the funds of many investors. Their goal is to purchase additional securities the investors may not have been able to obtain on their own. 

Examples of Mutual Fund Fraud

The purpose of mutual fund fraud is almost always to generate higher commissions for the stockbroker. There are many different ways brokers can engage in mutual fund fraud, but some of the more common types include:

  • Misrepresentation
  • Omission
  • Lack of diversification 
  • Unsuitability
  • Failure to do due diligence
  • Breach of fiduciary duty

These are only a few of the ways your broker could defraud you regarding your investment in mutual funds. Fortunately, when you lose money due to your financial advisor’s mutual fund fraud, you could potentially recover these losses.

What You Can Do About Mutual Fund Misconduct as an Investor

If you lost money due to mutual fund fraud, you may be able to get your money back when you file an arbitration complaint with the Financial Industry Regulatory Authority (FINRA). 

We will need to show the panel of arbitrators your stockbroker or financial planning institution is responsible for the investment losses you suffered. The accused party can then try to defend themselves.

The arbitrators then deliberate and if they determine negligence or misconduct caused your losses, they can order your broker to pay you the restitution you deserve. 

Meet With a Stockbroker Misconduct Attorney

Are you a victim of mutual fund fraud? Get help holding your broker accountable. Recover your losses in FINRA arbitration. Contact Wolper Law Firm, P.A. for help through this overwhelming legal process today. 

Call our office at 800.931.8452 or complete our convenient contact form below to schedule your free, no-obligation consultation. 

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]