How Do You Know if You Need New York Securities Fraud Lawyers for Investment Losses?
Every investment carries risk — some more than others. When you invest in the securities market and lose money, it doesn’t necessarily mean that your financial advisor or stockbroker did anything wrong.
If you believe your advisor is guilty of misconduct, fraud, or even unintentional negligence, you may have a legal claim. Our securities lawyers can help you discover whether you have a claim by examining your account statements, communications with your advisor, and other evidence.
Do not hesitate to reach out to our law firm if you believe an investment advisor or brokerage firm wronged you. We deliver personalized and responsive service and can be reached seven days a week online or by calling us at 800.931.8452.
Matthew and his Wolper Law Firm colleagues helped my family recoup significant losses which we had in part considered irreparable due to the complexity and time-sensitive factor of the case.
We never met Matthew in person as my family lives in a different state, and some overseas, but since the initial Zoom call (and we consulted various Lawyers), he immediately conveyed his professionalism, seriousness, and competence. In fact, the entire process was handled 100% remotely from multiple locations, very efficiently via email, zoom, phone calls, using file hosting services, DocuSign and so on.
We were taken back by Matthew’s ability to formulate a strong case with the necessary firmness and conviction to secure a position to facilitate favorable settlement following a mediation process. Matthew responded almost immediately, even on weekends or holidays and communicating with him was concise and insightful. He ensured that we understood the process and we felt well guided from beginning to end.
We recommend Matthew and Wolper Law Firm wholeheartedly.
Thank you for everything Matt!
~ Luis Soto
How Financial Advisors and Brokers Cost Investors Money
Financial advisors and brokers have a fiduciary duty to act in the best interests of their clients. When they fail to do so, they can be held legally accountable. They can cost you money by:
- Recommending unsuitable investments that do not align with your financial objectives and risk tolerance
- Placing you in a complex and speculative investment and then misrepresenting the risk
- Excessively trading in securities accounts, called churning, to generate commissions
- Engaging in unauthorized trading in non-discretionary accounts
- Stealing, or embezzling, money from your investment accounts.
You are not alone if you have lost money to a dishonest or careless financial advisor, broker, or brokerage firm. At Wolper Law Firm, our business is recovering investment losses.
Frequently Asked Questions about Securities Law
Contact Us Directly With Specific Concerns
The following are answers to common questions about securities law. To have your questions answered about your case, contact our law firm.
There are federal and state laws covering investments:
- The federal Securities Act of 1933 prohibits fraud in the sale of securities and requires that investors receive financial and other information about public securities offerings.
- The federal Securities Exchange Act of 1934 created the SEC and enabled it to regulate and discipline brokerage firms and their agents.
- “Blue sky” laws vary between states. They require companies to register the securities they offer. Financial advisors, brokerages, and brokers must be licensed.
In addition to these laws, there are regulations, court decisions, and agency interpretations that impact buying and selling investments.
Unfortunately, securities and investment fraud are more common than most honest people would like and expect. The Financial Industry Regulatory Authority (FINRA) is a United States government-authorized organization that oversees the country’s brokers and brokerage firms.
Recent FINRA statistics show the organization referred nearly 1,000 cases of fraud and other misconduct for criminal prosecution in a single year. That year it barred nearly 250 brokers from trading and suspended 375 more.
They can happen for many reasons:
- Greedy financial advisors and brokers intentionally commit fraud.
- Because the securities industry and the laws regulating it are complicated, it can be easy for dishonest brokers and advisors to hide what they’re doing.
- Negligence by financial professionals can cost you money. A broker or advisor may be lazy, not understand investments, or provide poor advice.
When negligence or misconduct costs investors money, those who commit it should be held accountable.
Brokers, financial advisors, brokerages, and financial planning firms who commit fraud or are negligent may lose their professional licenses and certificates to work in the securities industry. They may also face significant fines. Individuals found guilty of investment and securities fraud may also be criminally prosecuted. They may pay criminal fines and serve prison time if they’re convicted.
A financial advisor disclosure is a report discussing the firm’s or the advisor’s:
- Fee schedule
- Past criminal, regulatory, or disciplinary actions
- Arbitration and civil proceedings
- Customer complaints
- Information on allegations, resolutions, and penalties.
These disclosures may contain warning signs that you should work with someone else.
Are You Suspicious About Your Broker?
Common Warning Signs of Securities Fraud and Negligence
The securities market naturally fluctuates, so if your account has losses, it does not mean you are the victim of securities fraud or negligence. However, securities misconduct could be the reason you have large losses without a good explanation. Pay attention to these warning signs:
- You notice a sudden, large, and unexpected loss in your portfolio.
- You see transactions you do not recognize or authorize.
- There are frequent trades your broker cannot explain.
- The overall market is on a high, but your accounts are losing a great deal of money.
- Your broker is not returning your phone calls or seems otherwise disinterested.
- Your broker recommends very complex investments you cannot understand.
- You lost money in past investments your broker has recommended and placed you in.
These are some of the common signs of misconduct. However, if you have any suspicions that something is not right, consider having our securities lawyers investigate for you. We may be able to identify misconduct before it costs you more money or reduce your losses.
Recovering Investment Losses through Arbitration or Litigation
Depending upon your circumstances and the details of your securities accounts, you may be eligible to bring your claim before an arbitration panel or litigate your case in civil court.
FINRA and the SEC can hold brokers and financial advisors accountable for misconduct through fines, license suspension, and other means.
Additionally, most claims from securities investors to recoup money lost to broker fraud are resolved through FINRA arbitration rather than in court. Independent arbitrators hear the evidence and arguments from both sides and then make binding decisions. Our securities attorneys arbitrate these FINRA cases nationwide.
If you are not bound to arbitration, you may sue the investment advisor or other securities professional who wronged you in civil court. A court case can often take longer than arbitration because decisions may be appealed.
Reach Out to a Diligent NY Securities Fraud Lawyer
Once we learn all the details of your case, we’ll advise you about the paths to financial recovery that may be available to you. Call our securities lawyers today to arrange a free, no-obligation consultation at 800.931.8452.
Safeguard Your Investment Money
Work with Reputable Financial Advisors and Brokers
It pays to know who you are trusting with your securities investment money. You can check broker, brokerage firm, and financial advisor credentials by visiting:
You can further protect yourself from becoming a victim by taking some common sense precautions that include:
- Saying no to investment opportunities that sound too good to be true
- Not allowing yourself to be pushed into quick investment decisions
- Walking away from securities that don’t have documentation
- Not buying unregistered securities
- Ignoring anyone who contacts you with an unsolicited securities offering.
If, despite your precautions, you believe you have been the victim of fraud, contact our securities lawyer for fraud cases today for help.
Contact Our Experienced New York Securities Fraud Litigation Lawyers
To begin the process of holding accountable the individual or company that caused your investment loss, schedule a free, confidential consultation with Wolper Law Firm. Our securities fraud attorneys in New York stand up assertively for the rights of defrauded investors. Call us at 800.931.8452 to learn how we can help you recover your money.