Our Broker Misconduct Law Firm Represents Accredited Investors Against Financial Advisors

Shepherd Smith Edwards and Kantas provides specialized legal representation for accredited investors seeking to recover losses caused by financial advisor misconduct, negligence, or fraud. The firm leverages over a century of collective experience to help high-net-worth individuals navigate the complexities of FINRA arbitration and hold brokerage firms accountable for unsuitable investment recommendations.

The Broker Misconduct Law Firm of Shepherd Smith Edwards and Kantas (investorlawyers.com) represents investors, including different kinds of accredited investors, in recouping the losses they sustained because their financial advisor engaged in wrongful or negligent conduct when managing their investment accounts.

An accredited investor can be an individual, certain types of financial investors, or business entities that satisfy certain criteria. In this blog post, we will talk about individuals who qualify as accredited investors and how we can help if you are one who was the victim of financial advisor misconduct.

What Is An Individual Accredited Investor, and What Are The Requirements To Qualify as One?

Under Regulation D, Rule 501, the US Securities and Exchange Commission (SEC) has established criteria for which individual investors qualify as accredited investors. These included one of the following:

• A yearly income of more than $200,000 for individual investors or $300,000 for couples for the last two years. There must also be reasonable grounds for expecting that income will be the same or more during the present year.
• A net worth of more than $1,000,000 for individuals and couples. This does not include the value of their primary residence.

I’m An Individual Accredited Investor. How Do I Demonstrate That I Meet the SEC’s Criteria?

To show you meet the income requirement, you may be asked to provide tax records from the last two years, such as income tax forms, your Schedule K1, or IRS Forms W-2 or your 1099.

To verify your net worth, you may be asked to share bank account statements, audited financial statements, or brokerage account statements. A credit check may be conducted to assess your liabilities. Your liabilities total would then be deducted from your net worth total.

What is The Difference Between Accredited Investors and Non-Accredited Investors?

• The net worth and income requirements are different.
• Accredited investors have more resources to withstand some losses.
• They are given access to certain investments that wouldn’t be offered to non-accredited investors. Such investment can result in greater returns, but also higher risks and larger losses.

However, not all accredited investors are necessarily sophisticated or highly experienced investors.

Non-accredited individual investors, also known asl retail investors:

• Have a yearly income of under $200,000 and less than $300,000 as a couple.
• Their net worth is under $1 million minus the value of their primary home.

Retail investors are not supposed to have access to the most risky alternative investments. They are considered unsophisticated investors who may not understand the risks involved.

Can I Sue My Broker For My Investment Losses If I’m An Accredited Investor?

Yes. If you are an accredited investor and your broker made an unsuitable investment recommendation, overconcentrated your account, excessively traded or made unauthorized trades in our account, made misrepresentations and omissions, was negligent, or acted fraudulently, you may have grounds for an investment loss recovery claim against them.

How Shepherd Smith Edwards and Kantas Can Help

Our accredited investor loss lawyers have been representing investors for decades. We have more than a century’s worth of collective experience in securities law and the securities industry, and we have handled thousands of broker misconduct claims against US brokerage firms in arbitration, mediation, and litigation.

We can help you assess whether you do have grounds for a broker fraud case. If we decide to work together, we will provide you with seasoned securities representation and personalized attention.

Find Out Your Investor Recovery Options:

Call (800) 259-9010 or contact us online to request your free, no obligation consultation.