Securities Fraud & Broker Misconduct in Raleigh and Surrounding Areas

Securities Fraud & Broker Misconduct

Inappropriate actions by a broker or investment firm can result is significant losses for an investor. Mismanagement of a financial portfolio can include failure to disclose material information, providing deceptive information and other improper actions by a broker.

The most common types of broker misconduct or securities fraud includes:

• UNSUITABLE INVESTMENTS:
  An investment is “unsuitable” when an investment advisor places a client in a high-risk investment to maximize the advisor’s commissions, when the client is not in the position of afford loss. For example, an investment adviser can be held accountable for placing an elderly client in a high-risk, speculative investments.
• CHURNING:
  Churning is when a broker over trades within a client’s account or portfolio to generate broker commissions. Even if the account shows a positive return, a broker can still be held accountable for improper churning.
• UNAUTHORIZED TRADING:
  Unauthorized trading happens when a broker buys or sells securities with a client’s authorization or permission.
• MISREPRESENTATION OR FAILURE TO DISCLOSE INFORMATION:
  A broker has a duty to full explain the risks and benefits of an investment. Failure to disclose material information about the investment or misrepresentations about the investment violate the brokers legal obligations.

If you experience unreturned phone calls, newly purchased investments that lose value, trends in your monthly statement that comparable, unauthorized transactions, or explanations that you don’t understand, please contact us for an investigation.

Broker misconduct can be difficult to identify. It is important that you protect the assets that you have earned.

ARBITRATION:

The Financial Industry Regulatory Authority (FINRA) is an independent organization that enforces the rule governing registered brokers and broker dealer firms in the United States.

If an individual has a dispute with a FINRA broker, the individual may be required to arbitrate the dispute according the FINRA’s Dispute Resolution. Arbitrating disputes pursuant to the FINRA is often quicker and less expensive than traditional lawsuits.

Miller Law Group, PLLC of many years of experience fighting victims of fraud and abuse. If you believe you have been a victim of Broker Misconduct or Securities Fraud, please contact us for a free consultation.