Filing A Claim
If you think you have a financial abuse claim, virtually all brokerage houses will require you to submit your dispute to a binding arbitration. What about financial advisers, is this handled differently?
While arbitration can be quicker and less expensive than a trial in court to recover your financial losses, critics of the arbitration forum contend it is nothing more than Wall Street policing itself, in other word, the fox guarding the hen house. Trying to sue your broker by yourself can be very risky.
There are specific and specialized laws governing the conduct of an arbitration proceeding. Most importantly is the fact that an arbitration award is final and binding, subject to review by a court only on a very limited basis. Which means you only get one chance to recover your losses?
The brokerage house will hire experienced attorneys; you should do the same. Hiring an attorney with experience can level the playing field. Global Tax Solutions can work to protect your rights often on a contingency fee basis.
Complete our no-obligation free claim evaluation form and Global Tax Solutions can determine if you have a legitimate claim of investment fraud or financial abuse.
Types of Stockbroker Misconduct
Misconduct by stockbrokers and brokerage firms comes in many forms. If you suspect you were taken advantage of by a dishonest financial investment professional, Contact Global Tax Solutions we represent investors globally.
Claims Against Stockbrokers and Brokerage Firms
Stockbroker fraud occurs when an individual broker or brokerage firm acts in a dishonest and manipulative way to the detriment of their client. Victims of fraudulent acts, such as unauthorized trading, churning or selling away, may be able to recoup their investment losses. Most claims against stockbrokers and brokerage firms fall into the following categories:
Churning: Excessive trading in order to generate commissions.
Unauthorized trading: When a broker buys and sells without client consent.
Selling away: When an individual broker sells an investment to a client without the approval and knowledge of the brokerage firm — the brokerage firm may be held accountable for failure to supervise.
Stock manipulation: When a broker is involved in pumping up the price of stock, allowing insiders to sell out at an inflated price; retail clients are usually left with stock of little or no value.
Unsuitable investment recommendations: Recommending the purchase of an investment that is not appropriate for the particular investor given his/her age, investment objectives, risk tolerance, etc.
Fiduciary duty means a stockbroker bears a responsibility to place the investing interests of clients before their own and to provide full disclosure about the investments and financial products that they recommend.
When these obligations are breached, a form of stockbroker fraud or misconduct may have taken place. Examples of stockbroker fraud include a broker who knowingly recommends certain investments that are unsuitable for clients; selling an unregistered security; and over-concentrating an investor's account in a single stock or sector.
Do you have a case? Questions are:
1. Did your stockbroker or financial advisor make false statements about the investment they recommended to you, or did they fail to disclose certain important information?
2. Did your stockbroker or financial advisor invest your capitl too aggressively or in highly risky investments?
3. Did your stockbroker or financial advisor invest most or all of your money in one stock or bond, or in one particular economic sector?
4. Did your stockbroker or financial advisor fail to diversify your investment assets?
5. Did your stockbroker or financial advisor excessively trade or "churn" your account generating significant commissions?
6. Did your stockbroker or financial advisor make trades without your authorization and knowledge?
7. Did your stockbroker or financial advisor sell you a promissory note or other private investment without the knowledge of his employer?
8. Did your stockbroker or financial advisor fail to generate income for you in your retirement years?
9. Did your stockbroker or financial advisor sell you a variable annuity that has lost money and tied up your funds?
10. Did your stockbroker or financial advisor use margin and/ or trade options in your account?
If you have answered YES to any of these questions, you may have a case.
Contact us for confidential consultation, You can call us at (800) 277-1193 (toll free). You also can request a private and confidential evaluation by clicking Here, and your inquiry will be immediately reviewed by one of our attorneys who handles your specific type case.