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Broker Misconduct

A brokerage firm or broker can be held liable if that firm or broker misrepresents material facts or omits to disclose material facts to the investor regarding an investment, and that client subsequently loses money on that investment. Often the misrepresentations or omissions disguise the risk associated with a particular investment. A broker has a duty to fairly disclose all of the risks associated with an investment.

When it comes to a financial advisor, that person should be a trusted, transparent and reliable source of recommendations and advice. It is the duty of the advisor to provide their client with recommendations that are suitable and treat their clients with fairness.

However, there are brokerage firms out there that will abuse their position with the goal of bolstering their own profits, all at the expense of investors. It is critical to be able to identify this type of behavior and assess if you are at risk or have been a victim of broker misconduct.

Why Should SSEK Law Firm Represent Me for the Misconduct of a Broker?

SSEK Law firm represents client throughout the U.S., as well as Puerto Rico and can help you recover any losses you may have incurred from dishonest or irresponsible brokers and brokerage firms.

When you find yourself in a situation in which a broker or brokerage firm has wronged you, you need to know all of your legal options and partner with a firm that you can trust. SSEK Law Firm has been representing clients in broker misconduct cases for nearly 30 years. Our skilled team of attorneys has 100 years of combined experience.

Our Practice Areas Margin Account Abuse

A “margin” account is a brokerage account in which the brokerage firm loans money to the investor. For example, if $100,000 is deposited into a “cash” account it can be used to buy $100,000 worth of stock.

Churning

Churning occurs when a broker engages in excessive trading in an account. A broker churns an account in an attempt to generate commissions. Many times he will sell the winners to show a small profit, and keep the losers.

Negligence

Some persons - even some lawyers - are of the mistaken belief that investors must demonstrate that a broker or firm committed securities fraud in order to seek recovery.

Overconcentration

One of the most important rules of investing is diversification. If a broker concentrates your portfolio in any individual investment or type of investment, then the risk of losses with that portfolio is dramatically increased.

Registration Violations

Both federal and states' laws are strict on who must be registered to sell securities. Securities offered or sold to the public must be registered under state laws and/or with the Securities and Exchange Comission.

Unsuitability

In making an investment recommendation to a client, a broker must make recommendations that are consistent with the customer's risk tolerance, needs and investment objectives.

Unauthorized Trading

Prior to placing an order to buy or sell securities for an investor a broker or advisor must obtain the express permission of that investor. If not, the transaction is unauthorized.

Failure to Execute Trades

There is little incentive for a broker not to place an order. However, millions of transactions occur each day and mistakes are made, including failures to place orders.

Failure to Supervise

Each brokerage firm must “design and implement written procedures” in order to properly and effectively supervise the activities of each of its brokers and other employees.

Breach

When promises are made and consideration paid (or if the person promised reasonably relies on the promise and takes action) a contract is formed.

Omissions

A brokerage firm or broker can be held liable for stockbroker misconduct if that firm or broker misrepresents material facts or omits to disclose material facts to the investor regarding an investment, and that client subsequently loses money on that investment.

Client Reviews
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"I am going to miss conversations with you, Sam Edwards. You’ve been a wonderful lawyer and a friend. I loved learning legal jargon from you. But, even more, it is your self respect and commitment to your position that I admire and your persistent patience-your equanimity. With great appreciation, thank you!" M.B.
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"My experience with Ryan Cook has been very positive. Through every step of the litigation he explained what to expect to happen. When I spoke with him later he reviewed the process. He was very patient and I never felt rushed. I have already told friends how wonderful he is." L.R.
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