Broker Misconduct. Are you a Victim? (Part 1)

In this two part series, I will be explaining the “ins-and-outs” of determining whether or not you are victim of Broker misconduct.  Be sure to return for the conclusion of this very informative article.

I think I have a claim, is it worth pursuing?

Before you can decide if you are a victim you must first identify the facts specific to your alleged claim.  If you think you have a claim worth pursing, it is highly recommended that you consult with an experienced attorney who has knowledge working with the securities arbitration proceedings.  Most investors are unable to make a determination on their own about what constitutes a valid claim, and if they can, how to bring the claim forward.  This is both because investors usually lack the knowledge and lack the unemotional perspective necessary to evaluate a securities claim. There are many criteria to review before finding the proper basis to seek recovery of your losses against a broker or their firm for misconduct.  Just because your investments have tanked does not indicate provable misconduct.

Red flags of broker misconduct.

A few examples of red flags of possible broker/investment advisor misconduct to be aware of include:

  • Your broker fails to tell you important, harmful/negative information related to an investment before it was purchased;
  • When your investments continue to decline in value, your broker repeatedly advises you to stay the course;
  • Your broker cannot give you any explanations but advises you to purchase an investment you do not understand;
  • After a review of your account statements or confirmation slips, you discover there are investments referenced that you did not know about prior to their purchase;
  • Your account statement shows numerous purchase/sales of investments each month;
  • Your broker does not return your telephone calls/emails.

If any of these circumstances are familiar to you, you should immediately seek the advice of an experienced securities arbitration attorney by calling us at 813-443-5249.