Chicago Financial Advisor Fraud Attorneys

Chicago Financial Advisor Fraud Attorneys

Representing Illinois Investors In Recouping Their Losses From Brokers and Investment Advisers

According to the Federal Trade Commission, in 2022 consumers lost over $3.8M to investment scams. Unfortunately, among the perpetrators and/or enablers of such schemes are financial advisors. At Shepherd Smith Edwards and Kantas (, we represent Illinois investors who have lost money because of the fraudulent behaviors of their stockbroker or investment adviser.

Our Chicago financial advisor fraud law office is located in the heart of the financial district. Even if your broker or investment adviser wasn’t directly involved in the investing scam that caused your losses, if their misconduct or negligence exposed you to it, you may be able to sue them for damages.

Examples of financial advisor fraud: 

Misappropriating client funds: A broker steals an investor’s money, uses it for purposes other than the investment it was supposed to go toward, or converts the funds for their use. An unscrupulous financial advisor might even ask a customer to write the check directly to them.

Unauthorized trading: This is what happens when a financial advisor engages in trades in accounts in which they haven’t first sought the client’s permission. This goes for both non-discretionary accounts—they require the investor’s verbal or written permission before any trade—and discretionary accounts—the customer has authorized the broker to make trades without having to get their consent each time.

Churning: The financial advisor trades excessively in a customer’s account. This can look like too many trades made in a short period of time or the excessive buying and selling of the same securities. The purpose of churning is to generate commissions for the broker or investment adviser and their firm. This can lead to huge investor losses.

Selling unregistered securities: Poorly regulated, not registered with the US Securities and Exchange Commission (SEC), lacking in transparency, and perhaps even at greater risk of being fraudulent; such investments lack little protection and can create devastating losses.

Selling away: Marketing and selling investments that have not been approved or properly vetted by the broker-dealer and, usually, without the latter’s authorization and/or knowing.

Running a Ponzi scam or some other type of investment fraud: Unfortunately, there are brokers who will be brazen enough to operate some type of scam while working under the supervision of a registered broker-dealer or investment adviser. Whether or not the firm knew that the investment scheme was happening, they still could be held liable. One need only look at the Horizon Private Equity Ponzi fraud committed by former Oppenheimer broker John Woods to see what kind of serious financial harm can occur to investors.

Financial advisor fraud is also a term that can be used when a broker makes unsuitable recommendations, misrepresents the risks involved, overconcentrates a customer’s account with too many of the same investments, or engages in some other type of misconduct. Due diligence failures, breach of contract, and breach of fiduciary duty are other examples of stockbroker fraud.

Why Hire Our Chicago, IL Financial Advisor Fraud Law Firm?

We represent Illinois investors against brokerage firms and investment advisers not just in the region but throughout the United States. Over the decades, we have handled financial advisor fraud lawsuits and arbitration claims involving more than1000 different matters on behalf of clients. Our law firm has secured full or partial financial recovery for more than 90% of those that we’ve worked with. With our help, thousands of investors have collectively received many millions of dollars in awards or settlements.

Because many of us used to be brokers, often at the highest levels and at the biggest Wall Street and Chicago firms, we know how that business works. It is also why we left that industry. We did not like many of the bad behaviors and fraudulent practices we witnessed and they continue to take place even today. It is why we became financial advisor fraud lawyers.

Shepherd Smith Edwards and Kantas represent retail investors, retirees, inexperienced investors, elderly investors, accredited investors, high-net-worth individual investors, and institutional investors. When you hire our firm, you are represented not just by one of us. You are retaining our entire Chicago financial advisor fraud law firm to provide you with quality securities law representation and customized personal attention.

How To Contact Our Illinois Financial Advisor Fraud Attorneys

With more than a combined over a century’s worth of experience in securities law and the securities industry, allow us to help you explore your legal options during a free, no-obligation case assessment.

Call (312) 462-4176 or (800) 259-9010 or contact us online.

Our Chicago Financial Advisor Fraud Attorneys Office:

141 W Jackson Blvd #3550A
Chicago, IL 60604

Contact Information