Stock Broker Fraud Lawyer

Did you suffer massive losses on the stock market? Did your stock broker put their financial interests before yours? If so, you may be able to bring them to justice with the help of a respected stock broker fraud attorney.

When a financial advisor, stockbroker, financial planning institution, or brokerage firm prioritizes their own profits above the potential returns of their investors, the investor is the one who loses. In fact, it often isn’t until the investor loses a significant amount of money that the scheme is discovered. These entities can be held accountable for defrauding their investors in FINRA arbitration. 

If you have reason to believe your stock broker has been defrauding you and you are interested in ensuring they are held to account for their misconduct, an experienced stock broker fraud lawyer at Wolper Law Firm may be able to help. If we take on your case, we’ll do everything possible to obtain full repayment of the losses you endured.

Most Common Stock Broker Schemes

There are many ways your stock broker can get away with taking advantage of you. The complexity of the financial markets helps them disguise your losses as unavoidable risks you took by investing. In reality, the broker is defrauding you. Below are several types of schemes our firm regularly sees. 

• Making unsuitable investment recommendations – Your broker has an obligation to make recommendations that align with the goals as described in your investment portfolio. Any investment opportunity that does not help you achieve your goals and results in substantial losses could be considered an unsuitable investment. 
• Failure to diversify – A lack of portfolio diversification is one of the worst mistakes a stockbroker can make. You’ve heard the phrase “don’t put all of your eggs in one basket”. Lack of diversification is an over concentration of your investment portfolio in one area. It’s very risky given the volatility of the financial markets. 
• Failure to supervise – You should be able to trust that your brokerage firm or financial institution is monitoring their staff for fraud given how frequently it occurs within the industry. Failure to supervise holds the brokerage firm accountable for the actions of their brokers.
• Selling away –When a broker engages in selling away, they are offering securities to an investor that are not held by the brokerage firm. These securities then aren’t being properly vetted and often result in considerable investor losses.
• Unauthorized trading – If you don’t have a discretionary account and your broker executed transactions in your accounts without your permission, they can be held accountable for unauthorized trading. 
• Excessive trading (churning) – Churning, or making an excessive amount of trades in an investor’s account, generates high commissions for the broker and can cause massive investment losses. 
• Misrepresentation or omission – In an attempt to influence your decision to invest, a broker may leave out pertinent information or mislead you about the opportunity. 

These are just a few of the most common types of stock broker misconduct. If you have been taken advantage of in another way, you may still be entitled to financial compensation. You will need to speak with your stock fraud attorney to further discuss the individual details of your case and what legal options are available to you.

How to Know If Your Stockbroker Is Defrauding You

It can be difficult to tell whether your stock broker has been engaging in misconduct with your accounts. Hopefully, by keeping a close eye on your transactions and accounts, you’ll be able to prevent considerable losses. However, if you notice any of the following signs happening in your accounts, there is a strong possibility you have been defrauded:

• Large losses or gains when you asked for little risks
• Unauthorized transactions
• Transactions you don’t understand
• Low or no returns when similar investments have yielded high returns or gains
• Seeing an overall decline in your gains
• Considerable securities purchases on margin
• Being pressured to act on an investment suggestion
• Dramatic changes in the composition of your investment portfolio
• An influx of trade confirmations
• The majority of your investment portfolio concentrated on one product

Your stock broker may have a reasonable explanation for these warning signs, but rather than risk losing more than you would have if you weren’t being defrauded, contact a stock broker fraud attorney to discuss your concerns before speaking with your stock broker. 

Recover Your Stock Losses in FINRA Arbitration

Suffering losses due to stock broker fraud doesn’t necessarily mean you’ll lose out on those returns entirely. In fact, the Financial Industry Regulatory Authority (FINRA) provides opportunities for you to get your money back and be compensated for the impact the loss has had on your life. 

Investors who lose less than $100,000 will come before a one-panel arbitrator, while losses exceeding $100,000 will require a panel of three arbitrators to hear your case. Once you and the respondent have had the chance to present evidence to support your case, the arbitrators will review the evidence and make a decision.

You cannot appeal FINRA arbitration decisions. However, going to court could mean you won’t recover your losses for years, if ever, regardless of how strong your case might be. For this reason, many investors are willing to pursue FINRA arbitration in the hopes of resolving their case sooner rather than later or even never. Winning your FINRA arbitration case means your broker will be required to repay you for your stock losses within thirty days of the arbitrator’s decision. 

Speak with a Qualified Stock Broker Fraud Attorney

Although you may feel overwhelmed at the thought of pursuing legal action, doing so may be the best way to ensure you recover maximum restitution for your stock losses. You can further discuss the personal details of your case with a reputable stock broker fraud lawyer at Wolper Law Firm when you schedule a no-cost, no-obligation consultation. 

Our firm is proud to offer such meetings to investors who have been taken advantage of by unscrupulous stock brokers. To get started on your FINRA arbitration complaint, give our office a call at 866-814-6247 or submit the quick contact form included below.