The facts in each securities related claim are different. They involve different individuals and different circumstances. While there is no assurance that any client will obtain a recovery, or obtain a favorable award at the time of hearing, the following are representative claims where we have made successful recoveries on behalf of our clients:
As investment portfolio values continue to tumble, increasing numbers of investors and shareholders are questioning whether they have been properly advised and represented by their brokers and brokerage firms.
Most investors lack the expertise needed to detect stockbroker misconduct, but there things you can do if you suspect stockbroker fraud, and resources to turn to for answers or legal representation. The securities fraud attorneys at Universal Taxation Strategies have both the investment knowledge and the legal experience to help you understand what has happened to your investment portfolio and whether wrongdoing occurred.
Our securities lawyers help investors recover investment losses by holding brokers and brokerage firms accountable for their negligent and fraudulent investment practices.
Stockbroker misconduct cannot always be prevented, but there are things investors can do to minimize the chance of serious investment losses due to fraud or unethical broker behavior.
The background of every licensed broker is maintained in a computerized database called the Central Registration Depository (CRD). The CRD will reveal if clients have filed complaints against the broker, the amount of money paid to resolve the complaints, and whether the NASD or NYSE has ever fined or suspended the broker.
When an investor opens a brokerage account, they are required to complete various forms, including forms that outline the client’s investment objectives, risk tolerance, income and net worth. The brokerage firm relies on these documents to determine if investments are suitable. If you later wish to bring a legal claim for unsuitability, these documents will provide essential support for your case. Investors should review these documents carefully to ensure that the information provided is accurate.
Investors should review trade confirmations and monthly account statements as soon as they are received. Do not rely on account summaries prepared by a broker. A careful review of these statements and confirmations can identify unauthorized trading and excessive trading.
When a brokerage firm’s reports reveal questionable account activity, many firms send a letter to a client commonly referred to as a “happiness” letter. The stated purpose of these letters is to inform clients of account activity — the unstated purpose is to alert the client of potential stockbroker misconduct. The letter often instructs the client to contact the branch manager with any questions, without clearly stating why a client might want to do so.
Recognize this letter for what it is — a warning sign that you may have been the victim of stockbroker misconduct. Contact the branch manager and inform the branch manager of your investment objectives and risk tolerance. Ask if there has been any account activity that is inconsistent with your investor profile. If the branch manager identifies problems, request that changes be made to resolve the problems. Consider changing brokers or brokerage firms.
Delays in contacting a broker or branch manager about account-related problems can decrease the possibility of bringing a later legal claim for stock fraud or stockbroker misconduct. If you suspect questionable activity, address issues with brokers and branch managers as soon as possible. Document your concerns in writing.
Last, but certainly not least, if you identify broker misconduct, close your accounts and find another broker.
Failing to meet these duties is stockbroker misconduct, and it can have devastating financial consequences for investors.
If you believe that you have been the victim of stockbroker misconduct or fraud, you may be able to seek compensation through securities arbitration. The securities attorneys at Universal Taxation Strategies have both the investment knowledge and legal experience to help you understand whether wrongdoing occurred that led to losses in your investment portfolio.
Many investors believe that stockbrokers are highly trained in finance and investment portfolio management. Most stockbrokers are merely salespeople trained to sell investments over the telephone and to convince people to send their money to the broker. Brokerage firms provide little if any investment management training.
Requirements to become a stockbroker are minimal. The NASD does not even require that stockbrokers have a high school diploma. Brokers must pass a 260-question, multiple-choice test by answering 70% of the questions correctly. Some states also have a licensing exam. Once an applicant passes the NASD exam and any necessary state licensing exam, the NASD performs a criminal background check. If no felony charges are discovered, the applicant becomes a registered stockbroker.
Another area of investor confusion regards broker titles. Many stockbrokers hold titles such as “vice president.” These titles generally have no relation to a broker’s expertise, longevity in the industry, or quality of investment advice. They are given to brokers who generate certain levels of commissions for the brokerage firm.
For a free initial consultation about whether stockbroker and brokerage firm misconduct contributed to inappropriate investment losses in your account, contact a lawyer experienced in securities fraud. We represent investors globally. Call +########## to discuss your claim.