Client Recoveries: How to Protect Yourself Against Stockbroker Misconduct

As a client, you expect your stockbroker to act in your best interest, but unfortunately, not all brokers meet this standard. Securities-related claims involve different individuals, circumstances, lawyers, and decision-makers, so there’s no guarantee that you’ll receive a recovery or a favorable hearing. However, there are steps you can take to protect yourself against broker misconduct.

Here are some examples of successful recoveries we’ve made on behalf of our clients:

These are just a few examples of the common claims against brokers. Stockbrokers and investment professionals have a duty to act in the customer’s best interest, placing their interests above their own or their employer’s. Federal securities laws prohibit any material misstatement or omission of fact in connection with the purchase or sale of securities. Misstatements include mischaracterizations or false statements about a particular security, issuer, or a company’s business prospects. Omissions include the failure to disclose facts that would render other statements materially misleading. A statement is material if it’s important enough to affect a reasonable investor’s decision-making process.

Other forms of stockbroker misconduct include suitability, excessive activity or “churning,” margin account fraud, unauthorized trading, breach of fiduciary duty, financial suicide, mutual fund fraud, failure to execute, failure to supervise, sale of unregistered securities, and variable annuity fraud.

To protect yourself against stockbroker misconduct, it’s important to work with a reputable broker and to thoroughly understand any investment opportunities before committing. Keep an eye out for red flags, such as unsolicited investment offers or pressure to make quick decisions. If you believe your broker has engaged in misconduct, contact an experienced securities attorney to discuss your options.