When you give someone money to invest for you, you expect that they will do what is best for you and your situation. You’re counting on their financial knowledge and experience and that they will make the right decisions. In addition to your hard-earned money, you are giving them your trust.
This is why when that trust is broken, it can be devastating, especially if it hurts you and your family financially. Unfortunately, fraud or mismanagement can and does happen in the financial services industry. In some cases, an overzealous broker or firm may not explicitly mean any harm, but in others, the harm is clearly intentional.
Because any type of investment comes with a certain amount of risk, often investors don’t know that anything improper may have taken place when they’ve lost money. But in some cases, the broker or brokerage firm is at fault and violates financial industry regulations, and all parties should be held responsible.
Even if they know fraud was committed, many investors don’t do anything about it. This could be for a few different reasons: they don’t know what steps to take, they think there’s no way they can successfully challenge a large firm, or they don’t have the money to pay a lawyer.
This is why finding a law firm that works on contingency is crucial. A contingency-based firm doesn’t ask for any money upfront and in fact won’t require any type of payment unless their client recovers lost money. The right contingency firm will handle everything for you and won’t be afraid to go up against any financial entity, no matter its size.
What constitutes broker fraud?
You might be surprised with the many different ways brokers can break SEC and FINRA rules and regulations, including:
- Churning: Excessive trading done for the purpose of generating extra commissions to enrich both the broker and firm.
- Failure to supervise: A firm not adhering to its obligation to know what its brokers are up to and whether or not they’re following the rules.
- Misrepresentation: A broker lying about an investment or purposely withholding important information.
- Elder financial fraud: Taking advantage of an older person who may not have the knowledge or capacity to know what they are agreeing to.
The securities arbitration process
One of the best ways to attempt to get back any money that you may be entitled to is through securities arbitration. Similar to a regular court case, an arbitrator will make a decision and potentially award damages based on the evidence and arguments. The decision is binding and limits the ability to appeal.
Silver Law Group will fight to help you get back lost money
If you believe you lost money as the result of a broker who committed fraud or violated securities industry regulations, don’t stay silent. It’s possible that you were not the only victim. To find out if you may be able to recover money, get in touch with the Silver Law Group.
Our attorneys are leaders in the field of securities arbitration. We represent individual and institutional investors across the United States who have lost money at the hands of a trusted financial advisor. Scott Silver is currently the chairman of the American Trial Lawyers Association, Securities and Financial Fraud Group and routinely represents investors in securities arbitration claims.
We only work on contingency, so unless you recoup lost funds, you won’t owe us anything. Call us today at 800-975-4345 or just fill out our online contact form.