Broker Misconduct Claims

What Are Broker Misconduct Claims?

While market activity and significant events can lead to investment losses, broker misconduct also may have been a factor. Contrary to popular belief, broker misconduct doesn’t always have to involve purposeful malintent or criminal actions by your financial advisor.

Regardless, you will need to work with a seasoned investment attorney if you want to maximize your chances of a full financial recovery. Shepherd Smith Edwards and Kantas (SSEK Law Firm at has been fighting for retail investors, retirees, high net worth individual investors, and institutional investors for over thirty years.

Through Financial Industry Regulatory Authority (FINRA) arbitration, mediation, and litigation, we have recovered millions of dollars on investors’ behalf who have been harmed due to broker misconduct. Call SSEK Law Firm at (800) 259-9010.

Examples of Broker Misconduct

Below are some of the examples of broker misconduct that an investor may experience:

  • Making unsuitable investment recommendations;
  • Making misrepresentations or omissions when marketing an investment product or strategy to a customer;
  • Overconcentrating an investor’s account in too much of one kind of investment;
  • Excessively trading in a customer’s account to generate more commissions;
  • Making unauthorized trades in a customer’s account;
  • Failing to execute orders or trades;
  • Committing registration violations;
  • Selling away: When a broker marketing and selling investment products that the firm does not approve of;
  • Misappropriating investors' funds;
  • Broker negligence: Involves failing to provide a customer with the standard of care they should have received;
  • Failure to conduct due diligence;
  • Margin account abuse;
  • Breach of fiduciary duty;
  • Breach of contract;
  • Failure to supervise;
  • Broker fraud.
Broker Misconduct Red Flags: What Should Investors Be Looking Out For?

Yet, how do you know if your broker or financial advisor is carrying out broker misconduct or acting negligently? Here are the red flags you need to look out for:

  • Unusually high volumes of trades happening in your account;
  • Your portfolio appears to be concentrated on one particular type of product;
  • Your financial advisor is switching you between mutual funds or variable annuities too often;
  • Guarantees from your broker that you are sure to make returns;
  • Promises that you will experience no investment losses;
  • Unauthorized transactions in your account;
  • Withdrawals in your account that exceed your usual distributions;
  • Huge investment gains or losses in your portfolio even after you made it clear that you were unwilling to take on too much risk.
Why Should You File A Claim Working With the Help of Experienced Broker Misconduct Lawyers?

This is not the type of case you want to bring without savvy broker negligence attorneys representing you. In many cases, wrongful or negligent actions by your financial advisor can be tough to identify, let alone prove, unless you know what to look for.

Even if the Securities and Exchange Commission (SEC), FINRA, or prosecutors have brought their own charges related to your losses, or a class action securities lawsuit has been filed on behalf of you and investors, you need your own legal team protecting you and pursuing damages on your behalf with your own individual claim.

At SSEK Law Firm, our skilled broker negligence lawyers can:

  • Determine whether you have grounds for pursuing damages;
  • Help you identify and take the necessary steps to stop any broker misconduct that is still occurring;
  • Conduct the required due diligence to build a solid case against your broker and their broker-dealer;
  • Prepare and file your arbitration claim in FINRA arbitration;
  • Argue your broker misconduct case before a panel of FINRA arbitrators.
Broker Misconduct FAQ: How Do I Know If My Broker Acted Negligently?

Often, it is the broker-dealer that you will be pursuing damages from even if the firm was unaware of the broker's misconduct as it was happening. A brokerage firm has to properly supervise its registered representatives’ activities and customers’ accounts. You want a securities law firm with the resources, skills, and knowledge required to go up against a financial firm.

To schedule your free, no-obligation initial case assessment, call SSEK Law Firm at (800) 259-9010 or contact us online.

Client Reviews
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