June 15, 2024

Stockbroker Misconduct Lawyer

If you recently endured substantial stock losses as a result of your stockbroker or brokerage firm’s reckless or irresponsible actions, get in touch with a respected stockbroker misconduct attorney to see what can be done to recover your damages.

When you enlist the services of a financial advisor, you should be able to reasonably expect that they will make recommendations that align with your investment objectives and be honest with the information that they provide to you about potential investment opportunities.

But when your broker fails you by engaging in misconduct, there are steps you can take to recoup your financial losses when you consult with a stockbroker misconduct lawyer. At Meissner Associates, we are dedicated to doing everything possible to protect and defend investors.

We will thoroughly investigate your case to determine how your stockbroker or brokerage firm has wronged you so that ideally we can recover your stock losses in an arbitration hearing through the Financial Industry Regulatory Authority (FINRA). With our firm by your side, you can maximize your chances of obtaining the remuneration that is rightfully yours.

The Duty of Fair Dealing

By law, stockbrokers are required to act in the best interests of their investors. This is known as the duty of fair dealing. There are many responsibilities the broker must uphold in order to meet their duty of fair dealing obligations.

These duties include disclosing all relevant information regarding possible investments; ensuring that all investment recommendations are recommended as per the client’s investment portfolio, which outlines the investor’s goals and objectives; and making sure that securities are sold at fair market value.

Other responsibilities that stockbrokers have include management of the investor’s portfolio, research of financial markets, making suitable investment recommendations, and making their client aware of any conflicts of interest that may arise.

Both FINRA and the U.S. Securities and Exchange Commission (SEC) are responsible for the regulation of securities laws as they relate to broker and brokerage firm conduct.

However, despite these rules and regulations, some financial planning corporations may require that their brokers engage in misconduct in order to increase the company’s profits. This is when you’ll see many brokers misleading investors and making unsuitable investment recommendations.

Ways Your Stockbroker Acted Fraudulently

A stockbroker can engage in misconduct at any point during your professional relationship. Some types of stockbroker fraud are more common than others. Most frequently, brokers will swindle their clients in the following ways:

  • Providing misleading information
  • Making unsuitable investment suggestions
  • Engaging in excessive trading, also known as churning
  • Selling away
  • Investing with a lack of diversification
  • Trading without your permission
  • Excessive use of margin
  • Failure to supervise

Any investment opportunity comes with risks, but your broker’s actions should not be the source of your financial losses. When you’ve endured losses of $100,000 or more, an esteemed attorney at Meissner Associates can help you secure maximum repayment.

Signs of Broker Wrongdoing

Now that you know some of the different ways your stockbroker could be swindling you, there are some red flags you can be looking out for when examining your investment accounts. Due to the fact that the stock market is so complicated, many brokers are under the impression that they can get away with fraudulent activity undetected.

If you notice any of the following activities in your investment accounts, you might need to get help from an attorney:

  • A particularly risky investment
  • Sudden, unexplainable losses
  • An increase in the amount of trades in your accounts
  • Trades that don’t seem to make any sense or match up with your goals, as explained in your investor portfolio
  • Unexplained withdrawals in your accounts
  • Investments that were made without your consent

These are all signs that your broker may be engaging in misconduct that could warrant the reimbursement of your losses. The sooner you reach out to your stockbroker misconduct attorney, the quicker you’ll be able to request your FINRA hearing and hopefully be able to obtain the restitution you deserve for your stockbroker’s gross misconduct.

Stockbroker Misconduct FAQ

More often than not, those who have suffered substantial financial losses have little or no knowledge of stockbroker misconduct and may assume that their loss was simply a risk they were willing to take when they invested. On the contrary, scheming brokers are far more common than you might think.

With that being said, below we have answered some of the most frequently asked questions wronged investors have had in regard to holding their negligent stockbroker accountable for their actions. Additional questions can be discussed during your free case evaluation with your stockbroker misconduct attorney.

Do I really need a lawyer to hold my stockbroker accountable for my losses?

Having legal representation is the best way to ensure that you are prepared for anything the defense will throw at you. When you are going up against your stockbroker, they are likely going to be supported by their brokerage firm and a team of highly trained attorneys. This can be intimidating when you don’t have an experienced attorney of your own by your side.

When you choose to be represented by Meissner Associates, you can be sure that we’ll meet all necessary deadlines and do what we can to build a compelling case against the stockbroker who wronged you so that your chances of recovering full compensation for your stock losses are exponentially increased.

How long do I have to report my case to the FINRA?

FINRA allows victims of broker misconduct to file an arbitration or mediation request within six years from the date that the misconduct occurred or from the date that you become aware of fraudulent stockbroker practices and your financial losses.

You can expect the defense to try and make use of other time restrictions as outlined in Rule 13206, which is why it is important that you consult with a qualified broker misconduct attorney, who will be fully aware of these statute of limitations and how they may influence your case.

What should I expect in my FINRA arbitration hearing?

Once you’ve realized the extent of your stock losses, you can file an arbitration claim through FINRA to recover the funds you lost. You’ll be required to attend an in-person hearing with your attorney in front of a panel of three FINRA arbitrators who will hear the details of your case.

We’ll present the evidence we’ve gathered that demonstrates your broker’s misconduct, and the defense will have the opportunity to refute our claims. Once both sides have presented their cases, the arbitrators will review the evidence to determine whether misconduct has occurred and how much you’ll be awarded if misconduct is proven.

It’s important to note that the arbitrators are under no obligation to resolve your case the day of your hearing or even shortly thereafter, and it is not uncommon for arbitrators to review the circumstances of stockbroker misconduct for a year or more before issuing a decision.

Work with an Honest Stockbroker Misconduct Attorney

When you have suffered financial losses that exceed $100,000, you need a stockbroker misconduct lawyer who you can trust. Reach out to the team at Meissner Associates today to schedule your free consultation. You can do so by filling out the quick contact form we’ve included at the bottom of this page or by giving our office a call at 212-764-3100.