When you have lost money on the stock market due to the misconduct of your stockbroker, a highly qualified stock loss attorney may be able to assist you in recovering the compensation you’re entitled to.
Most people would say the stock market is risky in and of itself for any investor, and stock losses themselves are not uncommon, by any means. But stock losses that occur due to the negligent or devious actions of a broker are not only less common, but downright abhorrent.
Fortunately, the Financial Industry Regulatory Authority (FINRA) gives wronged investors the opportunity to hold irresponsible brokers accountable.
At Wolper Law Firm, we have a zero-tolerance policy when it comes to stockbroker misconduct, and we do everything possible to see that investors who have endured substantial losses because of these individuals are able to go after the money they’ve lost. Your stock loss lawyer can help you file your FINRA arbitration claim so you can hopefully not only recover the investments you lost but bring the broker in question to justice.
Things to Know about Scheming Stockbrokers
Some brokers are able to get away with engaging in misconduct because of the fact that they can hide the smaller losses as being a risk you took when you started investing. Sadly, sometimes it isn’t until an investor endures losses amounting to thousands, tens of thousands, or even hundreds of thousands of dollars that they discover such fraud.
With that being said, there are some types of schemes that stockbrokers participate in more frequently than others, so keep an eye out for them. These include:
- Making unsuitable investment suggestions
- Excessive trading (churning)
- Selling away
- Failure to supervise
- Failure to diversify
- Omission and misrepresentation
- Unauthorized trading
There are many other ways that a stockbroker could have defrauded you. If you’ve been a victim of unregistered trading, failure to execute trades, or some other type of broker misconduct, you may be able to secure repayment of your losses. Contact a qualified attorney for more information about how to proceed with your FINRA complaint.
Stock Loss FAQ
Investing in the stock market always means that you are taking a risk that you’ll lose out on your investment. For this reason, it can be difficult to know whether your losses justify a FINRA arbitration claim.
When they do, you will likely have questions regarding what will happen next for your complaint. For this reason, we have answered some of the most common stock loss questions so you can have a better understanding of what’s to come. Additional questions that have not been addressed on this page can be discussed during your free complaint review.
Arbitration Procedure Rule 12904 for Customer Disputes and Rule 13904 for Industry Disputes expressly state that any monetary awards decided by arbitrations following a FINRA arbitration complaint must be paid to the stock loss victim within thirty days of the decision being rendered. If you have not received your settlement within this timeframe, your lawyer can take legal action to obtain the compensation you are owed.
The best route to take if you want your stockbroker’s negligence to appear on their BrokerCheck profile is to report your complaint to FINRA so they can investigate the misconduct in question. BrokerCheck shows all allegations, and the broker will have the opportunity to respond to said allegations. If FINRA finds that the actions the broker has been accused of are not unfounded, this will be reflected on their BrokerCheck profile.
Yes, the statute of limitations, as per FINRA regulations, requires that victims of stock losses must submit a complaint to FINRA within six years of the date of the loss. If you did not discover the loss until a later date, it’s possible that this deadline could be extended, depending on the details of your case. Unfortunately, in most cases, if a claim is not filed before six years have passed, you will no longer be able to seek repayment of your losses through a FINRA arbitration complaint. Speak with your attorney as soon as possible if you believe your case is approaching this deadline.
What to Do If Your Stockbroker Engaged in Misconduct
There are a couple of different ways you can go about both punishing a reckless stockbroker and getting your money back after a serious stock loss. The first is through mediation.
Both parties will have to agree to participate in mediation in order to proceed with this option, but in many cases, the case may be better off in mediation than the alternative. In mediation, a mediator will be present as you discuss your concerns and issues with the other party, and they will assist you in seeing if both parties can come to a reasonable solution to the dispute in question.
The good news is that as many as four out of five mediation sessions can result in a settlement, making it a valuable option for financial recovery.
However, sometimes FINRA arbitration is a better option. Maybe the broker is failing to accept responsibility for their conduct, or perhaps you’ll have a greater chance of securing full repayment of your losses if you go to arbitration. In any case, going to arbitration is another way you can go about holding the liable party to account for their misconduct.
Preparing for Your FINRA Arbitration Hearing for Stock Losses
There a few key points you’ll want to be aware of before you head to FINRA arbitration. First, arbitration is usually the less expensive and more timely option when it comes to filing a complaint and seeking financial recovery of your stock market losses. Cases heard in arbitration can still take as long as 18 months to resolve, though many are resolved sooner.
With that being said, decisions made by the arbitrators who hear your case will be final. There are no opportunities for appeal when you go to arbitration. However, the payout can often be well worth the risk.
After you have filed your statement of claim, which is your complaint against the stockbroker who wronged you, FINRA will review your case and set a hearing date. At your hearing, you will have the opportunity to describe your losses, present evidence, and have witnesses testify on your behalf. The other party will also have the same opportunity.
Once both parties have been heard, the arbitrator or arbitrators, depending on how significant your losses were, will review the evidence presented and the testimony given to determine two things: 1) whether you are entitled to repayment for your losses, and 2) how much you should be awarded.
Reach Out to a Stock Loss Attorney
Suffering massive losses on the stock market can be difficult to cope with. If you find yourself being wronged by your stockbroker and dealing with the consequences of a significant investment loss, a respected stock loss lawyer at Wolper Law Firm may be able to help you obtain maximum repayment of your stock losses and other damages.
Your confidential consultation is free. You can schedule yours by submitting the online contact form we have provided at the bottom of this page or calling our office at 800.931.8452.