Stock Fraud Attorney

WHAT IS INVESTMENT FRAUD?

Some of the Most Common Claims Involving Investments and Securities Include:

Unsuitable Investing "Unsuitability": An "unsuitability" claim arises where the broker or financial advisor recommends the purchase of securities that are inconsistent with the customer's needs, investment objectives, or risk tolerance.

Ask yourself these questions:

1. How much risk did you want to take with your money?
2. Did your advisor tell you your investments were consistent with that risk?
3. Did you lose significantly more than you believed possible?

For example: If you were told you were conservatively invested but still lost significant money you may have a claim for unsuitability.

Churning: Occurs when a stockbroker buys and sells securities for a customer's account, without regard to the customer's investment interests, for the purpose of generating commissions. Churning can involve most any kind of security, including stocks, options, bonds, mutual funds, and annuities.

Breach of Fiduciary Duty: Brokers and Financial Advisors are oftentimes considered fiduciaries in relation to their investors.  Their fiduciary duties include the duty to manage the accounts as dictated by the customer's needs and objectives, to inform of risks in particular investments, to refrain from self-dealing, to follow order instructions, to disclose any self-interests, to stay abreast of market changes, and to explain strategies.

Unauthorized Trading: Occurs when a stockbroker or financial advisor fails to obtain the customer's advance authorization to purchase or sell a security. A stockbroker may not make trading decisions on your account without having prior written authorization to do so.

Failure to Execute / Failure to Follow Instructions: Brokers, financial advisors, and sales assistants are generally required to follow their customer's instructions. Liability may arise where the customer's instructions are not followed.

Material Misrepresentations or Omissions:  If a broker or financial advisor intentionally or recklessly misleads an investor or fails to disclose material facts about an investment, you may have a claim for misrepresentation or omission.  This can occur in the sale of any investment but most commonly arises in the sale of complex products such as annuities, REITS, derivatives, and private placements.

Failure to Diversify: Occurs when a broker or financial advisor fails to recommend an appropriate allocation of an investor's assets into different investment classes. In other words, a claim may exist when a broker recommends too high of a percentage of one's assets be invested in equities, rather than fixed income investments such as bonds.

Unregistered Stockbrokers and Unregistered Sales Assistants: Stockbrokers and certain sales assistants are required by law to be registered with the Financial Industry Regulatory Authority and with state regulators. Where either person is not registered when they are required to be registered, a customer may have the right to rescind a purchase or sale.

To speak with Hornsby Law about obtaining the services of a stock fraud attorney, please call us at (407) 599-3800 for a consultation so that you may discuss your case.

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