What Are The Common Signs Of Investment Fraud, Negligence Or Other Misconduct?
Investment related misconduct comes in many forms. It can be out in the open and flagrant but most often it is concealed and subtle. The hallmark signs of investment misconduct are:
- Sudden, precipitous drops in the value of your portfolio, particularly when not in tandem with the overall financial markets
- Your financial advisor is recommending that you pursue an investment strategy that carries a higher degree of risk with which you are comfortable
- Portfolio concentration in a single security, sector of the market or asset class
- Your financial advisor is evasive and non-responsive
- Your financial advisor describes a trade or strategy as risk-free or guaranteed
- Transactions are made without your authorization or with insufficient justification
- A high number of transactions are recommended by a financial advisor
To minimize the likelihood that you will be a victim, there are several procedures than investors can and should implement, including the following:
- Regularly review your account statements. There is a wealth of information that will allow you to:
- Confirm that you have authorized the purchase and/or sale of the investments in your account;
- Confirm deposits/withdrawals;
- Evaluate the performance of your investments
- Have quarterly meetings with your financial advisor to discuss your accounts and the strategy going forward.
- Pay attention to the news. If there is political or economic acrimony, there is a higher likelihood that the financial markets will respond negatively. These changes could impact the value of your portfolio.
- Don’t accept short, non-responsive answers from your financial advisor. If you have question about your investments, you are entitled to an answer.
- Ask your financial advisor for the fees and commissions that are being charged in the account. This includes fees associated with new issue securities, such as IPOs.
- Brokerage firms periodically send correspondence to customers, advising them of the risk profile of their investments. If you are told that an investment you own carries more risk than you are comfortable with, have a discussion with your financial advisor or his/her branch manager.
If You Have Concerns Regarding Your Brokerage Firm Or Financial Advisor, Contact The Wolper Law Firm For A Free, Confidential Consultation
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration. Matt Wolper is an experienced trial lawyer who has handled hundreds of securities matters involving complex investment strategies and products. He has tried large scale, multi-million dollar securities matters and has a proven track record of success. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. His industry insight, experience and knowledge gives his clients a competitive advantage. For a free consultation and case assessment, contact the Wolper Law Firm at 800.931.8452 or by email at email@example.com.
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- Former Ameriprise Financial Services, Inc. Broker, Sean Refsnider, Barred By FINRA For Allegedly Converting Assets From An Elderly Client
- Barred Former Financial Services, Inc. Broker, Johnathan Freeze, Has Nine Costumer Complaint Disclosures
- Merrill Lynch, Pierce, Fenner & Smith Broker, Forrest Jones, Under Investigation By The United States Securities And Exchange Commission
- Former Fortune Financial Services Broker, Jeffrey Butler, Has Had Five Customer Complaint Disclosures
- W & S Brokerage Services, Inc. Broker, Marcus Beasley, Sanctioned And Discharged For Allegedly Engaging In Outside Business Activity
- Former AXA Advisors LLC Broker, Jenna Kang, Barred By FINRA For Failing To Cooperate With Investigation Regarding Whether She Improperly Signed Customer Forms
- Former Vision Brokerage Services, LLC Broker, Dwight Dykstra, Supsended by FINRA For One Year And Fined $10,000, For Allegedly Engaging In Private Securities Transactions
- Four Points Capital Partners LLC Broker, Michael Christopher Martino, Has Had Five Customer Complaint Disclosures
- Former Woodbury Financial Services, Inc. Broker, Ronald Hannes, Barred By FINRA For Failing To Cooperate With FINRA Investigation Regarding The Conversion Of Client Assets