Yet securities fraud and investment advisor fraud happen all the time and may include: Misrepresentations and omissions Unsuitable investment recommendations and sales Overconcentration Excessive trading in a customer’s account, also known as churning Unauthorized trading Failure to execute trades Registration ...

At SSEK Law Firm, we have represented thousands of investors and recovered many millions of dollars on their behalf over losses caused by: Misappropriation Broker fraud Misrepresentations and Omissions Negligence Unregistered securities sales Other registration violations Failure to execute trades ...

There was also the 2011 rogue trader scandal that resulted in a more than $2B loss from unauthorized trading.

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 ...

Instead, they are represented as stable or a good way to diversify as they do not typically change their value since they are not traded on any exchange. This suggests to some investors that the security is not losing value, ...

This means only employing a trading strategy or making investment recommendations that fully align with the investor’s goals, portfolio, and risk tolerance level.

August 2017: FINRA fined the brokerage firm $100K for allegedly failing to supervise the sale of inverse and leveraged exchange-traded funds. This resulted in customers purchasing 6,500 ETFs worth about $92M in 1400 accounts. Meanwhile, FSC Securities earned about $603K ...

This entails tactics such as unauthorized trading, misrepresentation, pressuring sales tactics, and more. There Are a Few Common Types of Stockbroker Fraud: Omissions or misrepresentation: Occurs when a brokerage firm or broker misrepresents facts or does not disclose facts to ...

Churning which involves making too many trades in an account so that the broker can keep earning commissions. Engaging in trades or buying investments without the customer’s knowledge or approval. This is a practice known as unauthorized trading .

Risky Investments: Investing a conservative senior's funds in risky investments, such as private placements, nontraded real estate investment trusts (nontraded REITs), exchange-traded funds (ETFs), business development companies (BDCs), structured products, oil and gas investments, collateralized loan obligations (CLOs), or collateralized ...