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What Can I Expect to Recover if My Stock Broker Committed Fraud?

August 24, 2015 Blog

For many investors, discovering that they are victims of stock broker fraud can have life-changing consequences. If you find yourself in this situation, it is important to know that all is not necessarily lost. If your nest egg has been squandered through unsuitable investments or improper trading, you can seek full compensation through FINRA arbitration.

Seeking Recovery Through FINRA Arbitration
Claims for damages against stock brokers are handled through arbitration with the Financial Industry Regulatory Authority (FINRA). There are strict guidelines for FINRA arbitration. But, the process is generally more efficient than courtroom litigation and the FINRA arbitrators’ knowledge in stock broker fraud cases can be of benefit to investors trying to prove that their brokers collected illegitimate gains. You can learn more in our prior post on the basics of FINRA dispute resolution.

Remedies Available in Arbitration
If your lawyers prove you have been defrauded, the FINRA arbitrators will issue an award in your favor. FINRA arbitration awards generally include some or all of the following:

Compensatory Damages – For most individuals who have suffered losses due to stock broker fraud, this will be the biggest portion of your recovery. Compensatory damages are intended to cover the actual losses in your portfolio. This includes not only your investment principal, but also the gains you reasonably should have expected to make had your funds been invested appropriately.

Attorneys’ Fees – Depending on the facts of your case and where you are located, you may be entitled to recover your attorneys’ fees as well. For example, several state and federal laws allow employees to recover attorneys’ fees in disputes with their employers (such as those involving company stock plans).

Arbitration Costs – When you file a successful arbitration, you may also be able to recover the costs associated with your filing.

Punitive Damages – In cases involving egregious misconduct, the FINRA arbitration panel hearing your case may also award punitive damages. Punitive damages are not directly tied to your losses, and – as the name suggests – are intended to punish the bad actor in order to deter future fraud or misconduct. We have recently seen cases involving six-figure punitive damages awards against individual brokers and multi-million dollar awards against major investment banks.

The amount you may be able to recover will depend on a number of factors that are unique to your case, including the amount of your losses and the scope and nature of your broker’s fraudulent conduct.

If you believe you may have suffered investment losses due to stock broker fraud, it is important to act quickly in order to preserve your best chance at a full recovery. Our attorneys can help you evaluate your case and then take appropriate action to recover what you are owed.

Do You Have a Case? Contact Zamansky LLC to Learn More
Zamansky LLC’s experienced stock broker fraud lawyers are nationally-recognized for providing aggressive representation for victims of stock broker fraud. If you experienced sudden losses or have concerns about questionable trades on your account statement, we want to help you fight for justice. Call (212) 742-1414 or contact us online now for a free consultation.

Client Reviews

“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
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