NorthStar Financial Services (Bermuda)Learn More Here. Se Habla Español.

The Top Types of Securities Fraud All Investors Must Know

Broker Fraud Along With The Coronavirus May Be Causing Investment Losses 

Becoming the victim of securities fraud is a serious matter. With stocks plummeting and the markets fluctuating all over the place in the wake of COVID-19, investors may not realize that it’s not just the economic reverberations of the coronavirus that’s plaguing their portfolio. 

They also may be losing money because their stockbrokers or investment advisor were fraudulent or negligent when handling their investments and placed them in an even more precarious financial situation with more losses than they would now be sustaining otherwise. 

We at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) remain hard at work providing legal help to investors throughout the US even as we implement the necessary measures to protect our employees and those needing legal counsel. Contact our broker fraud law firm today. 

What Are The Most Common Types Of Securities Fraud?

Over the years, we have dealt with investors who have filed claims against brokers and their brokerage firms for a number of broker fraud actions. The most common types of securities fraud that we provide assistance for include: 

Churning: This involves a broker making excessive trades in an account for the purposes of making more commissions and not because it is in the customer’s best interests. 

Margin Account Abuse: Unsuitable for inexperienced investors, this involves a broker-dealer lending money to an investor to buy stock and results in the firm making commissions. While it can add to the investor’s buying power, it also increases the risk of investment losses.

Overconcentration: Concentrating too much of a customer’s portfolio in a particular security or investment type leads to a lack of diversification that can also lead to a higher risk of losses. 

Unsuitability: Recommending an investment that is not suitable for a client, their investment goals, their needs, and their risk tolerance level.

Unauthorized Trading: Making trades in an account without the customer’s permission.

Failure to Execute Trades: Not making a trade that the investor has ordered.

Failure to Supervise: This is when a brokerage firm and/or one of its supervisors doesn’t properly supervise a broker or another employee and fraud or negligence occurs and also losses.

Breach of Fiduciary Duty: A broker or investment adviser’s failure to act in the best interests of the customer.

Breach of Contract: Violating the terms of the contract made between the customer and the broker and its brokerage firm.

Misrepresentations and Omissions: When a broker leaves out or misrepresents key information and facts about an investment, including the risks,  and the customer ends up losing money after agreeing to an investment they didn’t fully understand.

Now Is The Time To Explore Your Legal Options 

Securities fraud can be grounds for an investor claim filed against the broker and/or their firm. Our broker fraud attorneys have spent the last 30 years successfully representing clients in FINRA arbitration to help them recover their losses. 

At SSEK Law Firm, we understand how stressful these times are right now especially in the light of COVID-19 and its impact on every aspect of your life, including your portfolio. However, we anticipate that there will be many investor claims in the weeks and months to come and the sooner you work with experienced legal representation to prepare your complaint the faster you can get your case heard. 

Our broker fraud attorneys are offering a free, no-obligation consultation to find out how we can help. Contact us online or call 800-259-9010.

Contact Information