Chicago Failure To Supervise Law Firm

We Represent Illinois Investors In Recouping Losses From Broker-Dealers and Investment Advisers

From our Chicago securities law office, Shepherd Smith Edwards and Kantas (investorlawyers.com) works with investors throughout the Prairie State in holding brokerage firms and investment advisers liable because they did not properly supervise their brokers and activities in customers’ accounts. Established in 1990, we are a seasoned Illinois investment loss recovery law firm.

Many of us used to be financial advisors who quit that industry because we did not like how a lot of our former colleagues treated their customers. Their bad practices and careless behaviors resulted in significant losses for many. It is why we do what we do now, which is to hold brokerage firms liable for their lax supervision and other negligent practices.

What Is Failure To Supervise By A Broker-Dealer?

Negligent supervision is what can happen when a broker-dealer lacks the necessary supervisory system to properly oversee its registered representatives. It can lead to the hiring of rogue brokers with a record of defrauding investors. Without the correct oversight, the firm’s financial advisors may end up not getting adequate and necessary training before they start working with customers.

A disregard of red flags warning that fraudulent activity is taking place can also happen. The failure to supervise may allow certain brokers to engage in unauthorized trades, selling away, churning, or misappropriation.

Even if a brokerage firm was unaware of broker fraud taking place under its watch, which it should have been, an investor may be able to file an Illinois failure to supervise claim seeking financial recovery for any resulting losses. A lax supervision case is not the kind of lawsuit that you want to make without trusted Chicago failure to supervise lawyers on your side.

FINRA Rule 3110. Supervision

Under this rule, the Financial Industry Regulatory Authority (FINRA) requires each member brokerage firm to establish and maintain a system that will allow it to properly oversee each associated person’s activities. This supervisory system must be designed in such a way so as to secure compliance with relevant securities regulations and laws. There must be written procedures, appropriate and designated supervisors, and supervisors for these supervisors.

Unfortunately, the failure to supervise is an all too common problem. It is one of the legal claims often made in Illinois investment loss recovery cases, along with other allegations, such as unsuitability, overconcentration, misrepresentations and omissions, and more.

What Should You Do If You Are An Illinois Investor Who Suspects A Failure To Supervise By Your Brokerage Firm?

Do NOT try to approach your broker-dealer about this concern on your own. Most firms would rather deny wrongdoing, even blame you, than admit to lax supervision. An acknowledgement of liability could end up forcing them to pay you damages, and other customers of theirs might end up coming forward with similar allegations.
Contact our trusted Chicago, IL negligent supervision law firm today and request your free, no obligation case assessment. We can help you determine whether you have grounds for pursuing damages from your broker-dealer. Remember that not all investor losses are a result of broker-dealer negligence. However, more often than not, it can be hard to identify when lax supervision was involved unless you know exactly what to look for.

If we decided to work together, you would be represented by Illinois failure to supervise attorneys that, along with our team of knowledgeable legal assistants, consultants, and others, have a collective experience of more than 100 years of experience in securities law and the securities industry. We strongly believe in providing quality securities representation and personalized attention.

Shepherd Smith Edwards and Kantas has helped thousands of investors regarding more than 1000 legal matters in arbitration, mediation, and litigation. Over the decades, we have helped retail investors, accredited investors, retirees, seniors, high-net-worth investors, ultra-high-net-worth investors, and institutional investors to recoup their portfolio losses.

Speak With Our Illinois Failure To Supervise Law Firm Today

Because we work on a contingency basis, you would only pay us for our securities fraud representation if we were able to secure your financial recovery. Call (800) 259-9010 or (312) 462-4176. You can also fill out this online form today and we will get back to you.

141 W Jackson Blvd #3550A
Chicago, IL 60604