|
Typical Securities Arbitration Cases Can Involve:
- Unauthorized Trades - the broker, without written discretionary authority having been provided, executes transactions without authorization immediately prior to each trade as required under various securities regulations. Contrary to many people’s belief, in the typical brokerage account (non-discretionary) a broker must obtain explicit authorization from the client immediately prior to each transaction otherwise the transaction is considered “unauthorized”. Such transactions can also impact upon and heighten a broker’s fiduciary obligation to its client leading to additional liability.
- Risk Profile Change - broker has changed your investment strategy without your input. An example would be to change your investment profile or objective from conservative to aggressive.
- Switching Mutual Fund - broker advises you to get out of one mutual fund or variable annuity and into another when it is not in your best interest. This is done in some cases for higher broker commissions.
- Excessive Use of Margin - broker recommends and/or engages in excessive and unsuitable use of margin significantly increasing the risk to the overall account leading to large unsuitable losses and/or not fully explaining such risks to the client or a broker may suggest the use of margin, suggesting that the investor take out a home-equity line of credit to cover a margin call. A subsequent margin call could result in the investor losing their home.
- Fraudulent Stock Research - broker provides fraudulent stock research.
"88% Recovery Merrill Lynch Research Case" Money/Morningstar, February 24, 2005: NASD
- Churning - broker excessively trades or constantly turns over your account, for the purpose of generating brokers' commissions.
- Negligent Retirement Advice - broker provides unsuitable speculative recommendations to a retiree resulting in the loss of their nest egg.
"Meissner Merrill Lynch Award" - Sunday
NY Times 08/10/03
- Unsuitable Annuity Products for the Elderly / Senior Citizens - broker recommends an annuity product to an elderly person. A broker can realize a significant profit from the sale of an annuity, but such a product is generally inappropriate or considered unsuitable for an elderly investor.
- Negligent Employee Stock Option Advice - broker fails to advise to sell and diversify or to properly collar or hedge. Two examples of the Meissner firm's Employee Stock cases are found on the following links.
America Online Employees Related to Their Employment Stock
and Their Former Morgan Stanley D.W. Broker
"Banc of America Securities Ordered to Pay N.J. Couple $840,000"
Forbes.com,
April 28, 2004 Related to their former broker, Richard Zinman
Broker & Corporate Malfeasance
Other examples of broker or corporate malfeasance, such as fraud, broker negligence, embezzlement,
market manipulation, and insider trading, may require litigation in state or federal court.
Stuart D. Meissner has significant experience as a trial attorney and is able to represent
his clients effectively in court as well as in arbitration.
The Meissner firm has represented individual investors in many
other matters in arbitration before the NASD or NYSE, including unsuitable speculative
investments and misrepresentations or omissions in describing the investments. For an
experienced securities arbitration law firm, contact Stuart
D. Meissner LLC. The
firm has handled securities arbitration cases from across the United States and around
the world. Click here to learn more about securities arbitration. |
