FINRA Arbitration Attorney for Investment Losses Due to Misrepresentation
As an individual investor working with a broker or investment advisor, you are entitled to make informed decisions based upon reliable information. You are entitled to the information you need to decide whether an investment is suitable to your financial condition and risk profile, and you are entitled to know whether your investment professional stands to benefit more than you.
Unfortunately, in the investment world, fraudulent misrepresentations are common. Whether due to a lack of understanding of a particular security or investment strategy, or an intentional attempt to conceal relevant information (as often occurs when a broker or advisor has a financial interest in a particular transaction), investors are regularly asked to make decisions based upon incomplete or inaccurate information. When this happens and investment losses result, investors are entitled to recover financial compensation. The FINRA arbitration attorneys at Zamansky, LCC can help you file a claim and seek justice. Call (212) 742-1414 today to speak with a member of our legal team.
Federal Protection Against Fraudulent Misrepresentations and Omissions
Rule 10b-5 promulgated under the Securities Exchange Act of 1934 is one of the investors’ greatest protections against investment fraud. In addition to generally prohibiting fraud in investment transactions, it also specifically prohibits investment advisors from making misrepresentations about material facts and omitting facts that are material to investors. A fact is considered “material” under Rule 10b-5 if it is a piece of information that an average investor would want to know before making an investment decision.
Examples of material facts that investment advisors often misrepresent or omit when discussing potential trades with their clients include:
- The risks associated with a particular investment
- Financial or legal risks facing the company selling stocks or bonds
- Broker’s fees, commissions and other costs that will be charged to the investor
These are just a few of the most common examples. If you believe that you were misled into an investment in any manner, you should speak with an attorney about your legal rights.
Recovering Investment Losses Resulting From Broker or Investment Advisor Misrepresentations
As with any investment fraud claim, if you are concerned about a possible misrepresentation or omission, it is important that you take action as soon as possible with an experienced FINRA arbitration attorney. It will be helpful for you to collect the following information (if you have it) in preparation for your initial consultation:
- Copies of your investment account statements from prior to and after the loss
- Any emails, texts or other written communications you have from your broker or investment advisor
- Any other documentation you received from your broker or investment advisor relating to the trade (or trades) in question
- Your broker’s or investment advisor’s contact information
- Any specific details you remember or questions you want to ask
Schedule an Initial Consultation With a FINRA Arbitration Attorney
If you believe that you may be a victim of investment fraud, we encourage you to contact us for a free initial consultation. We will make arrangements for you to discuss your case with an attorney as soon as possible. To request an appointment at Zamansky, LLC, please call (212) 742-1414 or inquire online today.