Anyone involved in the selling and buying of stocks and securities understand that there are always financial risks involved in such transactions, but such assumptions are accepted within the framework of a game being played on a level playing field.
In cases of demonstrable malfeasance however, you have legal recourse to protect your investment and recoup any losses. Knowing when it is time to hire an investment loss attorney often begins with a suspicion in your gut, but only a detailed investigation will reveal whether that gut check was accurate or not. That being said, that tugging feeling of suspicion often comes attendant with numerous red flags that should signal that a call to a reputable investment loss attorney is probably in your best financial interests.
Let us explore those red flags and their significance when it comes to timing your call to a lawyer. First however, let’s review your stock broker’s primary role of fiduciary duty.
What is Breach of Fiduciary Duty?
To begin, when it comes to pressing a legal claim against your broker, the claim can only be successful if you are able to prove that your broker engaged in a breach of fiduciary duty. Fiduciary duty or “the duty of fair play” applies only to registered brokers, so always guarantee that you only partner with a registered broker house for full protection against fraudulent investment loss. Typical complaints include:
- Unauthorized trading
- Negligence
- Churning
- Failure to supervise
- Unregistered trading
- Elder abuse
- Failure to diversify
Speaking with an investment loss attorney that is experienced in the regulatory environment is your best protection against unscrupulous brokers and firms. If you think that you have been the victim of unsavory investing practices, an experienced investment loss attorney can help you seek full payment of any loses you may have suffered as a result of these actions.
In the same way that a fast talking conman is going to rush with a word salad designed to confuse and obfuscate, so too will unsavory stock brokers when they are up to something suspicious. While the fast talking spiel might be an occupational hazard for brokers of stocks, you do not have to ignore the practice if it is causing you to doubt your broker’s honesty.
Some Telltale Signs of Investment Broker Fraud
Seasoned investors are no fools when it comes to their money, and while they may assign the responsibility of fiduciary duty to a brokerage firm that they trust, it does not mean that they thereafter adopt a hands off policy regarding their accounts and neither should you. Indeed, it is only through a careful review of your portfolio is it likely that you would even note the presence of any red flags before it is too late.
Indeed, it is only through noting these suspicious red flags that you will be able to answer the question of when it the time to contact an investment loss lawyer. As soon as you start seeing some of the following red flags pop up in your account, you should heed that warning gut feeling and reach out to an experienced litigator that understands securities law.
These telltale signs of fraudulent stock trading include:
- An excessive number of stock trades
- Sudden losses that remain unexplained
- Unauthorized trades appear in your account ledger
- Unexplained withdrawals from your trading account
- Brokerage firm has broken off contact and will not return calls or emails
Clearly, if someone owes you money, and they stop returning your calls, you do not need to be the lead investigator of the Security and Exchange Commission’s fraud department to become rightfully suspicious. Speaking with an attorney who is working on your side to discover what happened is the first step in recovering your investment funds and holding those guilty accountable.
Once improper behavior is identified, an experienced litigator will perform a full court push to help recover your investment. In addition to civil litigation and arbitration, the most egregious examples of investor fraud will be referred to state and federal authorizes for possible criminal indictment. That being said however, while all the investing world celebrated the conviction and imprisonment of Bernie Madoff, the elation did little to replace the billions of investment that the man’s Ponzi scheme siphoned away to support his own lavish lifestyle.
Call the Team at Wolper Law Firm for Help
If you believe that you have been the victim of a breach of fiduciary duty, we encourage you to reach out to our office here at Wolper Law Firm for a free consultation. We bring over 14 years of experience in the practice of securities law, and you can trust that our team will aggressively fight for your rights and the recovery of any lost investments.
As mentioned, risks are part and parcel of the investing game, but when those risks are made worse by bad faith actors in the brokerage industry. You have legal recourse within the arbitration and investigation capabilities of the Financial Industry Regulatory Authority and the Securities and Exchange Commission, and we can help you recover lose that were fraudulently caused by your broker.
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