June 15, 2024

What Is Stockbroker Fraud?

The duty of fair dealing is clear: Every stockbroker is required to only make trades and transactions that are both in the best interest of their investors and will assist them in meeting their investment goals. But when a broker engages in misconduct, it can result in massive stock market losses that could ruin your opportunity to come away with the returns you had been expecting.

Continue reading to learn more about the most common types of stockbroker fraud and what you can expect when you initiate arbitration against them.

Most Frequently Seen Types of Broker Misconduct

With so much money on the line, stockbrokers have gotten creative over the years with ways they can rip off their investors. However, some of their schemes occur far more frequently than others. Selling away, making unauthorized trades, excessive trading (also known as churning), making unsuitable investment recommendations, misrepresentation, and failure to supervise are the most common.

Due to the complex nature of the securities world, many fraudulent stockbrokers are able to engage in such misconduct until it’s too late for the investor and the investor loses a large amount of money. Fortunately, these losses don’t have to be permanent, as you can seek full repayment when you request an arbitration hearing with the Financial Industry Regulatory Authority (FINRA).

Recoup Your Damages in FINRA Arbitration

Requesting a hearing before FINRA is an excellent alternative to litigation. Instead of going to court, your attorney will present the evidence we’ve gathered that your stockbroker has engaged in fraud.

A panel of three arbitrators will hear your case, as well as the refutations of your broker and possibly their brokerage firm. Ultimately, our goal is to convince FINRA arbitrators that you are deserving of the money that was stolen from you by your stockbroker’s malpractice.

Get in Touch with a Qualified Stockbroker Fraud Lawyer

Are you ready to hold your broker accountable for the harm they’ve caused? Have you suffered stock losses of $100,000 or more? If so, reach out to an experienced stockbroker fraud lawyer at Meissner Associates as soon as possible. You can schedule your free case review today by submitting the online contact form at the bottom of this page or calling our office directly at 212-764-3100.