Mark & Associates, P.C. Attorneys At Law

Did You Get Bad Investment Advice? You May Qualify for Compensation

In these increasingly turbulent and uncertain economic times, many investors are being victimized by unscrupulous securities brokers and financial advisors who are eager to earn high commissions. The nation’s largest brokerage firms are not doing enough to prevent fraud and deceptive tactics by their brokers. Sadly, millions of American investors have lost their entire life savings, retirement and college funds, and other monies as the result of bad investment advice or fraudulent, illegal activities by brokers.

If you or someone you know received bad investment advice from a securities broker or financial planner, you may have rights. If your financial affairs an advisor or broker violated the law or professional rules for the securities industry in handling your investments, you may be entitled to financial compensation for your losses. The investment fraud attorneys at Mark & Associates, P.C. are experienced at helping investors recover their losses and are available 24 hours a day, 7 days a week to discuss your case. Contact us today by submitting the case inquiry form on our website or by calling 1-866-50- RIGHTS (1-866-507-4448).

Unsuitable Investments

Your securities broker may have invested your money in complex financial investments or risky trading strategies that are not a good fit given your current financial situation or investment goals. Unsuitable investments are among the most common violations of rules in the brokerage industry.

By law, a securities broker must recommend only those securities and investment strategies that the broker reasonably believes are suitable for the customer. A broker who proposes elaborate or risky financial ventures that are not in keeping with their customers’ goals, financial situation, tax status, and other considerations are breaking the law and may be financially liable to the customer for the losses.

Churning

Churning is the term for a broker or financial advisor making transactions on an investor’s account with the sole purpose of generating commissions. By making unnecessary or unauthorized trades, purchases, or other transactions on a customer’s account, brokers engage in illegal and unethical conduct.

You may detect churning by a high volume of transactions or inconsistent transactions on your investment account. Also, if your broker recommends the purchase or sale of securities, mutual funds, or other financial instruments that yield little or no profit or loss, that may be evidence of churning.

Failure to Diversify

Many investors are victims of financial portfolios that are not diversified. By investing too heavily in a single stock, the same type of assets, or a single group of securities, investors may be left vulnerable to sudden market downturns and suffer huge financial losses. An experienced financial advisor or broker should ensure that your investment portfolio is diversified and built on a broad range of holdings in an effort to protect you from losses.

Unauthorized Transactions

Brokers who make trades or other transactions on your account without your expressed authorization are breaking the law. Unless you have signed valid legal paperwork giving your broker the discretion to trade your account without your authorization, all trades on your account must be made with your permission.

Brokers commonly make transactions on your account then contact you to ask for your permission, which is illegal. Regardless of whether you made or lost money on the unauthorized trades, the broker’s conduct is still fraudulent.

Margin Account Abuse

A margin account is a fund in which a brokerage firm loans the investor money to purchase securities. The brokerage house generally loans the same amount of money the investor deposits in the account, meaning if you deposit $100,000 into a margin account, the brokerage firm will loan you $100,000, giving you $200,000 with which to invest.

Margin accounts were very profitable for brokerage houses that charged interest on the loans and were attractive to many investors who wanted twice the financial leverage with which to trade in the market. However, the accounts also left investors twice as exposed and in a position to lose much more money much faster when the value of the holdings in the accounts suddenly decreased.

Call for Free Legal Consultation

If you or a loved one lost money in the securities market due to bad investment advice or a broker who violated the law or professional standards, you could benefit from contacting Mark & Associates, P.C. today. Securities brokers and financial advisors who were eager to earn commissions may have misled you and withheld important about the risks of certain investments. Defrauded investors may now qualify for financial compensation for their losses. The experienced, aggressive attorneys at Mark & Associates, P.C. are available 24 hours a day, 7 days a week to discuss your case. Contact us today by submitting the case inquiry form on our website or by calling 1-866-50- RIGHTS (1-866-507-4448).