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Do You Need a Stockbroker Fraud Lawyer? We Help Investors Recover Fraudulent Investment Losses

Stockbroker fraud is a very real risk for investors. When you hire a stockbroker, your broker is supposed to act in your best interests. Unfortunately, this doesn’t always happen. Many investors suffer substantial losses due to their brokers’ misconduct—and they end up needing a stockbroker fraud attorney to help them recover their losses in FINRA arbitration.

7 Common Examples of Stockbroker Fraud

When can (and should) you talk to a stockbroker fraud lawyer about filing for FINRA arbitration? Here are seven of the most common types of stockbroker fraud:

1. Excessive Fees and Commissions

Charging excessive fees and commissions is a form of stockbroker fraud. Stockbrokers should disclose their fees and commissions in advance, and then they should charge their customers in accordance with these disclosures. If they don’t, they can be held liable in FINRA arbitration.

2. Theft of Investor Funds

In some cases, rather than charging excessive fees or commissions, stockbrokers will engage in outright theft. To do so, they may falsify investors’ account statements, or they may engage in various other deceitful (and often criminal) practices. If you have concerns about broker theft, you should speak with a stockbroker fraud attorney right away.

3. Withholding Material Information from Investors

Stockbrokers can also face liability for withholding material information from investors. This includes information about investment-related risks as well as the broker’s fees and commissions. As an investor, you are entitled to make informed decisions, and if your broker prevents you from doing so, you have the right to hold your broker accountable.

4. Misrepresenting Material Information About Investments

Investors can also pursue claims when their brokers misrepresent material information about investment opportunities. This is true whether brokers make these misrepresentations intentionally or negligently. Brokers can be held liable for both intentional misconduct and negligence, and a stockbroker fraud lawyer can help you pursue both types of claims in FINRA arbitration.

5. Account Churning

Account churning involves executing an excessive volume of trades in order to generate fees and commissions. Stockbrokers will often churn their customers’ accounts at their customers’ expense—either hoping their customers aren’t paying attention or hoping to get away with it for as long as possible.

6. Overconcentration (Lack of Diversification)

When making investment recommendations, stockbrokers have a duty to avoid overconcentrating their customers’ portfolios. If your broker is responsible for your portfolio’s lack of diversification, you may have a claim for stockbroker fraud.

7. Conflicts of Interest

Stockbrokers also have a duty to avoid conflicts of interest. When you hire a stockbroker, your broker must act in your best interests when making investment recommendations. If your broker has made recommendations focused on his or her own financial interests or business goals, this could give you grounds to recover your investment losses in FINRA arbitration as well.

Request a Free Consultation with a Stockbroker Fraud Attorney at Zamansky LLC

Do you need to know more about filing a claim for stockbroker fraud? If so, we encourage you to contact us promptly. Call 212-742-1414 or contact us online to schedule a free consultation with a stockbroker fraud attorney at Zamansky LLC.

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“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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