Broker Misconduct Attorney
As an investor, you rely on your broker for accurate and trustworthy advice. But unfortunately, not all brokers operate with the best interests of their clients in mind. Broker misconduct can take many forms, from misrepresenting investment products to engaging in fraudulent activities. If you are a victim of broker misconduct, it can be devastating, resulting in significant financial losses. Let an experienced broker misconduct attorney from Zamansky LLC help you.
What is Broker Misconduct?
Broker misconduct refers to any unethical or illegal behavior exhibited by a broker. This can include, but is not limited to:
- Misrepresenting investment products
- Engaging in fraudulent activities
- Making unsuitable investment recommendations
- Churning (excessive trading to generate commissions)
Misrepresenting Investment Products
It is essential to have the correct information when making investment decisions. Still, the potential risks of relying on information that has been misrepresented or withheld by brokers is ever-present. That said, brokers who engage in such practices may be held liable for the losses their clients sustain.
Engaging in Fraudulent Activities
At times, brokers may resort to outright criminal behavior such as theft, fraud, and forgery to embezzle their clients’ funds. One such scheme is “selling away,” where the broker conducts investment activities outside their official employment with a brokerage firm and fails to report or obtain approval for such activities. Further, in some extreme cases, brokers have been known to sell nonexistent investments. In such situations, you are entitled to seek proper compensation for any fraudulent conduct that has led to the misappropriation of your funds by the broker.
Recommending Unsuitable Investments
The suitability of an investment varies from person to person. What may be a good choice for one may prove to be an unwise decision for someone else. Therefore, when a broker recommends investments, he or she must consider the investor’s personal circumstances. This is crucial to ensure that the recommendations are appropriate and coincide with the investor’s financial objectives and risk tolerance.
Brokers who receive compensation through commissions earn them regardless of whether you make a profit or a loss when buying or selling investments. In situations where a broker has the discretion to manage your account’s investments and engages in excessive trading to generate commissions, this constitutes churning, which is a fraudulent practice. If your broker has churned your account, we will help you get the compensation to which you are entitled.
How to Identify Broker Misconduct?
Investors must be vigilant and educate themselves about the warning signs of broker misconduct. Below are some common red flags to watch for:
- The broker promises unrealistic returns or guarantees
- Your broker pushes you to invest in a specific product or company without adequately explaining the risks
- Your broker engages in high-pressure sales tactics
- You receive statements that are difficult to understand or contain unauthorized trades
Suspect Broker Misconduct? You Have Legal Options
If you suspect broker misconduct, you must take action immediately. First, contact your broker’s supervisor or compliance department. Then file a complaint with the Financial Industry Regulatory Authority (FINRA).
Time is of the essence when it comes to filing a complaint or taking legal action. So, the longer you wait, the more difficult it may be to recover your losses.
Have Questions or Concerns? Seek Legal Guidance from a Skilled Broker Misconduct Attorney Today
Broker misconduct can have devastating consequences for investors, resulting in significant financial losses. By educating yourself about the warning signs and taking quick action if you suspect wrongdoing, you can protect yourself and your investments. If you have suffered losses due to broker misconduct, don’t hesitate to contact a broker misconduct attorney for help.
Zamansky LLC is a securities law firm founded by Jake Zamansky, one of the top securities lawyers in the country. With decades of experience representing individual and institutional clients in cases against Wall Street firms for investment fraud losses, the team at Zamansky LLC is uniquely positioned to help you recover your losses and hold brokers accountable for their actions.