How can I determine if I have fallen victim to Brokerage Firm Deception?
How can I determine the likelihood of success in my claim against my broker?
Brokerage firm deception is a phrase that can be used to broadly describe the exploitation of a customer’s investment portfolio by a stockbroker and/or broker-dealer. Instances of this include excessive trading of the account (excessive buying and selling) and the promotion of unsuitable investments (limited partnerships and annuities).
For instance, the type of trading and risk that is appropriate for an executive in their 40s who earns a substantial six-figure income is completely distinct from what is suitable for the majority of retirees. The executive has the capacity to recover lost money, while retirees do not. Therefore, generally speaking, the investment recommendations a broker makes for a retiree should be cautious and prioritize capital preservation.
As a general rule, if you are retired and have experienced a loss of over 15% in your account in a single year, or have encountered significant losses with a particular security, it is advisable to have someone review your account.
Simply experiencing financial losses from investments in stocks and mutual funds does not automatically translate to a viable case against your broker. The fluctuating nature of the financial markets is not within the control of your broker and does not necessarily signify any wrongdoing on their part. However, it is crucial for a broker to invest your funds in line with your investment objectives at the time of making any investment decisions, while also consistently monitoring the performance of your investments over time.
Regrettably, some brokers may prioritize their own personal commissions over the best interests of their clients when managing client funds. Such misconduct can involve engaging in excessive and unnecessary trading known as churning, acquiring significant amounts of speculative securities on margin, frequently switching between mutual funds, conducting unauthorized trades, and engaging in deceptive practices related to annuities and retirement accounts.
In order to properly assess your situation, it is advised to consult with an attorney who specializes in advocating for investors who have grievances against brokerage firms. They will conduct a thorough interview and examination of your complete financial background to provide an informed evaluation of your case.
There is no way to ensure that you will recuperate all of your funds by filing a claim against your broker in arbitration. No legal firm can provide a guarantee of a specific amount that you may receive in an arbitration proceeding. However, attorneys knowledgeable in representing customers in securities arbitrations typically decline cases that they believe will not result in a monetary settlement or award. The decision of an experienced arbitration attorney to take on your case demonstrates their confidence in the substantial likelihood of obtaining some financial recovery.
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