Stockbroker misconduct covers a range of actions and omissions that can result in substantial financial losses for investors. These behaviors violate the basic fiduciary duty that stockbrokers, financial advisors, broker-dealers, investment advisors, and banks have to their customers.
These duties require that investment professionals place their clients’ interests ahead of their own. When this duty is betrayed, investors have recourse through claims made against the stockbroker, financial advisor, broker-dealer, investment advisor, or bank. Investment losses caused by stockbroker misconduct may be recovered through mediation, arbitration, or litigation.
Contact Levin Law, PA today to discuss your legal options. We have recovered more than $150 million for aggrieved investors and are prepared to help you. With offices in Miami, FL and Michigan, we serve clients anywhere in the world.
Stockbroker Misconduct
We Pursue the Compensation Our Clients Deserve
At Levin Law, our Miami stockbroker misconduct lawyers are experienced and extremely adept in recovering losses for investors. Levin Law represents a broad range of investors from across the country, and throughout the world, who have suffered financial losses as a result of the wrongdoing of financial professionals.
Our clients include fixed-income retirees, ultra-high-net-worth individuals, family offices, offshore trusts, private companies, public companies, and others. Our successful track record speaks for itself when it comes to pursuing the compensation our clients deserve aggressively. We take your trust seriously as we become warriors in the pursuit of justice.
Types of Stockbroker Misconduct
Stockbroker misconduct can come in many forms. If you are uncertain whether your broker has engaged in misconduct, you should not hesitate to consult with an attorney at our firm as soon as possible.
Examples of stockbroker misconduct include but are not limited to:
- Misrepresenting facts about an investment vehicle
- Omitting material facts about an investment vehicle
- Recommending products that are unsuitable for an investor’s goals and risk tolerance
- Negligence
- Breach of fiduciary duty
- Broker theft
- Churning
- Excessive or improper use of margin
- Elder financial fraud
- Hedge fund-related wrongdoing
- Improper sales of junk bonds
- Improper asset allocation, over-concentration, and lack of diversification
- Market-linked notes
- Ponzi schemes
- Penny stocks
- Pump and dumps
- Private placement securities sales
- Structured notes
- Unauthorized trading
- Unsuitable investments
Examples of stockbroker theft include:
- Withdrawing money from an investor account for the broker’s personal use
- “Borrowing” money from an investor account with promises to repay it at a future date
- Misappropriating funds
- Ponzi schemes
- Transferring cash or stocks without authorization
- Selling outside investments that are not part of the brokerage firm’s offerings
- Affinity fraud (investment scams directed toward certain religious or ethnic groups, professions, or the elderly)
- Forging checks
Unfortunately, many brokers, brokerage firms and financial advisors engage in unethical and unprofessional behavior. Broker theft, forgery, financial fraud and other forms of criminal activity do occur that taint the entire profession. When broker theft occurs, resolute legal action should follow under the guidance of a trusted Miami broker theft and financial fraud attorney experienced in securities arbitration, litigation, and financial industry legal matters.
Learn more about how to spot the signs of stockbroker misconduct and protect yourself by reading our article: "7 Tips to Avoid Being Ripped Off by Your Stock Broker"
FINRA Rules and Legal Protection for Investors
The Financial Industry Regulatory Authority ("FINRA") writes and enforces rules for stockbrokers in the interest of protecting consumers. If a broker or brokerage firm fails to comply with these rules and regulations, investors may be entitled to file a claim for damages in order to recover their investment losses.
Using FINRA's BrokerCheck tool, you can browse the list of brokers who have been barred by FINRA. You can also search for individuals by name to determine if the SEC ("U.S. Securities and Exchange Commission") has brought formal actions against them.
If you have been wronged by an investor, you have a right to legal representation. Levin Law is here to help investors navigate these complex legal matters and pursue the compensation they deserve.
Call Levin Law for a Free Confidential Consultation
Sustaining a substantial financial loss due to the misconduct of a stockbroker can be overwhelming and requires trusted professional assistance. Levin Law prides itself on being responsive and relentlessly pursuing justice on behalf of its clients.
We usually handle stockbroker misconduct on a contingency fee basis. If you suspect that you have suffered financial losses as a result of your investment professional’s misconduct, please contact us for a free case evaluation.
Our firm is dedicated to providing you with the highest quality of legal representation and recovering money for you. Call (305) 402-9050 today or contact us online.
