May 21, 2024

Proving Broker Misconduct

As all investors know, investing comes with a risk, but if your stockbroker is responsible for your enduring significant stock losses, you may be able to recover your losses when you file a complaint with the Financial Industry Regulatory Authority (FINRA).

However, proving broker misconduct is critical to the success of your arbitration hearing, and you’ll want to have an experienced stockbroker misconduct lawyer on your side as you seek the compensation that is rightfully yours. Continue reading to learn more about different types of stockbroker fraud and what you should expect as you head to arbitration.

Ways Your Stockbroker Could Have Committed Fraud

You need to be able to trust your broker to act in your best interest, but because of this trust, many stockbrokers are able to commit fraud without being noticed until a massive financial loss occurs. The most common types of stockbroker misconduct include:

  • Churning, also referred to as excessive trading
  • Lack of diversification in your transactions
  • Failure to supervise
  • Selling away
  • Misrepresentation of possible investments
  • Excessive use of margin
  • Unauthorized trading
  • Suggesting unsuitable investments

Fortunately, these types of misconduct typically leave a trail of evidence behind them, and when your accounts reflect any of these types of fraud, you can be sure that your attorney will fight for the repayment you deserve.

The Case against Your Broker

In order to secure remuneration for your stock losses, we will first need to file an arbitration claim with FINRA. We’ll be required to attend a hearing in front of a panel of three arbitrators who will then hear the evidence we’ve gather that support stockbroker negligence and/or misconduct.

If the arbitrators find our evidence compelling, then the broker will be ordered to compensate you based on the arbitrator’s findings. It is important that you are aware that arbitration can take some time, and some panels take more than a year before coming to a decision.

When all is said and done, if a stockbroker has engaged in misconduct that led to substantial investor losses, they should be obligated to repay you for all you’ve been through.

Speak with a Broker Misconduct Lawyer

To further discuss your potential FINRA arbitration claim, get in touch with a broker misconduct lawyer at Meissner Associates as soon as possible. You can schedule your free consultation today when you call our firm at 212-764-3100 or complete the brief contact form we have included below.