Stockbroker Fraud
Federal and state securities law prohibit securities fraud. However, there are an increasing number of cases that have been filed describing violations of these laws and breaches of fiduciary duties between stockbroker and investment clients. Securities law and investment law protect the investor and if you have suffered financial losses that you believe occurred as a result of your broker’s wrongdoing, you can file claim citing one or more of these reasons:
- Breach of fiduciary duty. Your broker has violated your trust and confidence
- Conflict of interest. Your securities firm conducts both investment banking activities and stock brokerage and you believe your broker or securities analyst has been recommending stock purchases based on an investment banking client
- Churning. Your broker has engaged in excessive trading on your account
- Failure to diversify. Your broker invested all your assets in a single stock or industry
- Ineptitude or malpractice. Your broker or analyst gave you incorrect or misleading information, leading you to make poor investment choices
- Insider information. Your broker or analyst had inside information of a company and used that information for trading purposes
- Market manipulation. Your broker took action to intentionally create a false market impression
- Misrepresentation. Your securities professional either provided you with incorrect information and concealed the truth
- Omission of the facts. Your broker intentionally misled you about a security by failing to tell you important, truthful information
- Risky investments. Your broker did not disclose the risk factors associated with your securities investment
- Trading without permission. Your broker traded without your permission
- Unsuitability. Your broker traded against your known investment goals
According to the Financial Industry Regulatory Authority (FINRA) the merged organization of the National Association of Securities Dealers and the New York Stock Exchange dealers, the most commonly cited cause of controversy was breach of fiduciary duty followed by misrepresentation. Securities involved included mostly mutual funds, derivative securities, and common stock.
Pre-dispute arbitration agreement
You may already be required to participate in securities arbitration if your pre-dispute arbitration agreement with your stockbroker mandates it. Securities arbitration is an alternate dispute resolution tool that engages an independent third party arbitrator to resolve the issue between you and your broker.
The Willeford Law Firm and experienced FINRA arbitrator and securities attorney James F. Willeford can help you file a claim citing any of the above causes for any security type.
The Willeford Law Firm—the investor’s choice for legal recovery of financial loss
Contact the Willeford Law Firm for representation in disputes with stockbrokers, brokerage houses, and insurance companies. We guide you through the claims process and focus on reducing your emotional and financial stress.
Call us at 1-800-706-5196 to schedule your free consultation or use the online form to tell us about your investment situation.
