What Is Stock Broker Fraud?
It may come as a surprise to learn that not all stock losses are caused by fluctuations in the stock market or because the investment itself was a poor choice. One common way investors lose money is because of their stock broker’s fraudulent actions.
There are many different ways that brokers, and the financial institutions that employ them, can take advantage of investors for their own financial gain. Read on to learn more about some common types of stock broker fraud and what you should do if you have suffered considerable losses on the stock market.
Common Types of Stock Broker Fraud
Fraud and misconduct by stock brokers can take many different forms. Some of the types of fraud that occur more commonly include:
- Failure to supervise
- Lack of portfolio diversification
- Ponzi schemes
- Unauthorized trading
- Churning (also called excessive trading)
- Selling away
These are just a couple ways investors can be defrauded by stock brokers. If you have been wronged in another way, you may still have a case. Your stock stock loss lawyer can help you learn more about your legal options.
What to Do if You’re a Victim of Stock Broker Fraud
If you have been a victim of stock broker fraud, there are several options you have to seek recovery of your investment losses. The option more commonly chosen by wronged investors is arbitration with the Financial Industry Regulatory Authority (FINRA).
FINRA oversees the conduct of registered stock brokers and brokerage firms. If FINRA agrees to hear your case, you’ll have the chance to hold your liable stock broker accountable for their actions and possibly recover the losses you endured.
Contact a Stock Broker Fraud Lawyer
If you are interested in learning more about what legal options are available to you after suffering devastating investment losses, reach out to a dedicated stock broker fraud lawyer at Wolper Law Firm. Call 800-931-8452 or complete the online contact form included below to schedule your complimentary case review.