Law Firm Investigates Webull Financial Pump-and-Dump Scam

Shepherd Smith Edwards and Kantas Continues To Investigate Webull Financial Over Alleged Third-Party Pump-and-Dump Scam

We Are Representing Customers of This Broker-Dealer Whose Accounts Were Breached 

If you are someone who suffered losses in the alleged pump-and-dump scheme involving your Webull Financial account that may have been breached, contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today.

Already, we are representing three investors who are suing the broker-dealer for up to $5,000,000 in damages, as well as two other Webull customers who are seeking up to $500,000 in financial recovery. We are also speaking to others who may have suffered similar losses.

Our investigation into Webull Financial revolves around allegations that an unauthorised third party was able to penetrate the broker-dealer’s security measures, gain access to customers’ brokerage accounts, liquidate these investors’ holdings, and use the money to buy Ten-League International Holdings (TLIH) Ltd. shares. This artificially raised the penny stock’s share price, and the unknown party allegedly profited from the higher price before liquidating their positions in TLIH.

The stock’s price plunged, and the Webull Financial customers whose accounts were breached ended up sustaining serious losses. TLIH penny stock is now priced at around 42 cents/share.

In addition to their pump-and-dump losses, these investors could end up having to pay huge tax bills for short- and long-term capital gains, seeing as the wrongful liquidation of securities may have been involved.

Webull Financial is a registered brokerage firm with a digital trading platform that self-directed investors can use to make trades that are low-cost and without having to pay any commissions. The brokerage firm uses Apex Clearing Corp. for its trading activities.

In a form letter that Webull sent out after the alleged breach, the brokerage firm blamed customers’ losses on a phishing scam. It has not acknowledged any negligence on its part.

Why Might Webull Financial Owe You Compensation For Your Losses in Any Pump-and-Dump Hack?

Broker-dealers are supposed to have the necessary systems in place to keep your money safe. When a failure to supervise or implement strong enough security measures allows fraudsters to gain access to your accounts and steal your money, you may be able to hold the brokerage firm liable for your losses. This is not the kind of securities claim that you want to make without trusted pump and dump scam lawyers representing you.

Shepherd Smith Edwards and Kantas has fought for investors against broker-dealers and investment advisers for decades. A number of our clients have been the victims of pump-and-dump frauds perpetrated by third parties and rogue brokers.

We have handled more than 1000 matters on behalf of thousands of investors, including filing investment loss recovery claims for them in arbitration, mediation, and litigation. The majority of our clients have secured awards and settlements through our skilled efforts.

Many of us are former financial advisors who quit the brokerage industry because we did not like many of the unsavoury and lax practices we witnessed that were hurting instead of helping investors. It is why we do what we do now, which is to help make those who have been victims of broker fraud and negligence financially whole again.

Contact our Webull Financial Pump-and-Dump Scam Law Firm To Discuss Your Webull Financial Brokerage Account Losses

Call (800) 259-9010 or fill out this online form to schedule your free, no obligation case assessment.