Recovering Losses When the Broker or Brokerage Firm is Responsible
When you have lost a significant portion of your investments or your retirement and life savings, you are owed an explanation of what went wrong. Was your broker negligent? Did he or she withhold certain information? Did he or she make unsuitable recommendations for your investment? If the broker or brokerage firm is responsible for your losses, you may be able to recover those investment losses.
When it comes to broker disputes, many cases are handled in securities arbitration, where a panel will listen to your case. This decision is crucial as it is considered final.
How to Determine if You Have an Investment Fraud Case
Not all cases of financial loss entitle you to recover those losses. Our experience has shown us that many times when clients seek our advice, there was no wrongdoing, but rather the losses were normal. Just as often, however, we have discovered fraud or negligence when reviewing client account records that would go unnoticed unless someone with the knowledge and experience of a securities attorney had reviewed it. This is why it is incredibly important to review your investment losses with an attorney.
There are a few primary areas that an attorney will review, including:
- Your prior investment experiences, if any
- Your investment focus and goals
- What information and knowledge your broker provided
- Your account activity
- Total losses incurred
- What happened to your investments
What You Can Do to Recover Your Investments
When investment loss happens, it is crucial to be proactive as doing so can potentially help you to recover losses:
- Actively research and gather information around your investment losses. This includes tracking records of your investment account, account statements, written communication and more with your broker.
- Hold off on a complaint letter. While it is understandable as to why this is tempting to do, but anything you do, including mailing a letter or sending an e-mail can be used against you to defend against the firm or broker’s wrongdoing.
- Get in touch with an experienced securities fraud attorney. Brokerage firms will bring in their legal teams when a formal complaint is made against them. It is crucial that you build a solid case with the counsel of an experience attorney so you are well equipped to deal with the firm’s sophisticated counsel.