A securities fraud lawyer may be able to help collect compensation as a result of losses or damages suffered because of a breach of duties. Reach out to our skilled team of lawyers for representation if you suspect your broker has committed a breach of duties.
The rules and laws behind an investment loss claim can be difficult to navigate. FINRA, or the Financial Industry Regulatory Authority, has a set of rules all its own, very different from traditional lawsuits. When faced with a securities fraud claim, it is best to rely on knowledgeable attorneys that are well versed and practiced in securities arbitration. With practical, professional experience and a vast resource base, our securities fraud lawyers at Lowther Walker, LLC are well equipped to handle your case. If you feel that you have suffered an injustice that has led to investment losses because of broker neglect or misconduct, our team of securities fraud lawyers can help.
Our securities fraud lawyers represent those who have suffered financial losses at the hands of brokers or a brokerage firm that has mismanaged or neglected financial portfolios. These losses could occur in stock, bonds, annuities, mutual funds, currencies, or any other type of investment. These cases are complex and intricate, and your best chance of success begins with securing legal representation with experience in this field.
The arbitration process is the first step in a securities fraud claim. This arbitration process is a less formal, quicker process than going to trial and making a case in the courtroom. The arbitration process begins with a panel of three arbitrators instead of a judge. These three arbitrators are appointed by the FINRA to oversee the case and preside over hearings as each side states its case and offers testimony to support claims or defenses. Upon hearing both sides, arbitrators will usually issue a decision within 30 days of listening to the final arguments. On average, it can take approximately 14 months to settle an investor fraud case in arbitration, which in the scheme of things, is much faster than that average courtroom trial length of duration. Should the damages sought be $50,000 or less, there is an even more streamlined process known as “simplified arbitration.” The simplified arbitration process is presided over by just one arbitrator and resolved quicker than the regular arbitration process.
Have you suffered a loss in your retirement of investments due to negligence or fraud on behalf of a financial advisor or brokerage firm? If your financial advisor or brokerage firm failed to act in your best interest, a securities fraud lawyer may be able to help you recover what was lost. There are some common types of securities fraud to be aware of when regularly monitoring your brokerage account for misconduct.
Unsuitability: When investing, it is a broker's duty to let clients know the risks associated with each investment. They should know their clients and be in tune with the risk each client is willing to take with investments. If decisions are made outside of that risk level and previously discussed financial objectives, you may be entitled to legal options for securities fraud. Securities fraud lawyers will review your portfolio to provide legal options and help you identify how you can make up for losses.
Over Concentration: Diversification is necessary for financial portfolios. If you notice a broker has failed to diversify but instead has concentrated on only a few investments, this overconcentration could mean you need a security fraud lawyer to investigate if there are grounds for legal action.
Churning: Churning is the process of recommending regular trading solely for the purpose of receiving commission. A securities fraud lawyer can investigate financial activities to determine if churning has occurred and can assist in recovering compensation for related losses.
Breach of Fiduciary Duty: A broker has a fiduciary duty to act in their client’s best interest at all times. If it seems as though a broker has put their financial interests ahead of yours, this breach of fiduciary duty could require legal action. For example, if a broker sells certain investments over high-performing investments simply because they will receive a higher rate of commission, this is considered a breach of fiduciary duty and grounds to file a lawsuit.
Unauthorized Trading: In most cases, a broker must receive permission from clients before trading occurs. If the broker fails to receive approval before buying or selling, this could be considered securities fraud. Additionally, trades cannot be made that are not suitable to a client’s account and a broker should not attempt to collect commission on such trades.
There are several other concerns that could be grounds for a lawsuit such as mutual fund, bond, or annuity switching, victims of Ponzi schemes, margin claims, and more. If you suspect you are the victim of any of these broker misconducts, it’s best to consult a securities fraud lawyer right away to investigate and begin legal action if necessary.
It is the duty of a broker to understand their clients’ overall investment objectives. They must consider these objectives as well as discuss risk tolerance to have a full picture of their clients’ objective goals. Not only must brokers have their clients’ best interests in mind when investing in financial opportunities, but they must also disclose all information concerning these investments to their clients. All material concerning investments should be disclosed, as well as any risk associated with investment options. Failure to do any of these things is considered a breach of duty.