Excessive trading, also known as churning, poses significant risks to investors while benefiting financial advisors and brokers through commissions. When a financial professional excessively trades securities in a client’s account for their own gain, it can result in substantial losses for the investor.
If you suspect you’ve fallen prey to investment churning in Georgia, it’s advisable to seek legal help as soon as possible. Meyer Wilson’s team of Georgia investment fraud lawyers empathizes with your situation and is here to guide you through your next steps.
If we handle your case, we will conduct a thorough investigation and work tirelessly to recover your investment losses. Contact an excessive trading/churning lawyer serving Georgia for a free case evaluation.
What Constitutes Excessive Trading / Churning?
Excessive trading (aka churning) occurs when a financial professional trades securities excessively or unnecessarily on behalf of a client to generate profits through commissions. While frequent trading can be legitimate if it is in the client’s best interests, doing so solely for commission purposes constitutes misconduct.
Churning is not only unethical but also illegal, violating U.S. Securities and Exchange Commission (SEC) laws. The Financial Industry Regulatory Authority (FINRA) also has rules in place to prevent excessive trading for advisor gain.
For churning to occur, the advisor must have had control over the investment decisions in the client’s account during the trading period. If churning took place, you may have grounds for financial compensation from the responsible advisor. However, proving your case can be challenging without legal representation.
How Financial Advisors Hide Churning
To mask churning, financial advisors and firms often label the brokerage account’s investment strategy as “speculation,” matching a “high” or “aggressive” risk tolerance. By framing trades as aligned with the client’s investment objectives, advisors attempt to justify their actions, claiming the client consented to such speculative trading.
However, advisors and firms have a legal obligation to ensure trading strategies prioritize client interests and comply with securities regulations. Even if clients indicate a tolerance for aggressive risk, investigations can uncover activities contrary to their best interests.
No investor wants their accounts manipulated for an advisor’s gain, regardless of their risk tolerance. If you suspect churning, you may seek financial redress from the deceitful advisor. Our law firm is a national leader in financial misconduct cases, and we are ready to put our experience to work for you.
Detecting Churning in Your Investment Account
Are you wondering if your advisor is churning investments in your portfolio? Look no further than your account statements for red flags.
Advisors may obscure churning by holding onto underperforming assets while selling profitable ones. This strategy can falsely depict portfolio growth, concealing the adverse effects of frequent commissions and substandard investments.
Be on the lookout for these telltale signs of advisor misconduct:
- Excessive trading activity
- Poor performance
- Unsuitable investments
- Lack of diversification
- High turnover rate
- Lack of communication
- Unexpected fees and commissions
If any of these warning signs are present, seek guidance from an excessive trading/churning attorney serving Georgia.
Why You Need a Georgia Excessive Trading / Churning Attorney
Excessive trading to generate commissions can result in substantial financial losses for investors. If you’ve been taken advantage of in this way, seeking legal representation from a Georgia churning attorney is crucial to protecting your rights and pursuing financial compensation.
Navigating the complexities of churning cases requires extensive legal knowledge. A skilled attorney can assess your situation, gather evidence, and hold responsible parties accountable for your losses.
Without proper legal representation, you may struggle to overcome various obstacles in the legal process. An experienced Georgia churning attorney can provide invaluable guidance and support throughout arbitration or litigation.
Why Choose Meyer Wilson?
When facing financial losses stemming from stock churning/investment churning, choosing the right law firm is crucial.
Here are some of the ways we stand out from our competitors:
- Proven track record: With more than 75 years of combined experience, our team has a solid track record of successfully recovering financial losses caused by advisor misconduct.
- High success rate: Our lawyers boast more than a 98% success rate with the cases they handle, ensuring you have the best possible chance of a favorable outcome.
- Ample resources: We have the resources needed to combat stock/investment churning, including strong relationships with mediators, securities regulators, and expert witnesses.
When you need legal representation due to financial misconduct, trust in our firm’s experience, commitment, and proven case results. We are dedicated to advocating for your rights, navigating complex legal processes, and obtaining the financial recovery you deserve.
Free Consultation With a Georgia Excessive Trading / Churning Lawyer
Don’t let an advisor who churned your investments rob you of your future. At Meyer Wilson, we are dedicated to protecting investors from such financial misconduct. Our churning lawyers serving Georgia have devoted themselves to combating fraudulent financial practices and recovering compensation for victims.
Since our firm operates on a contingency fee basis, you’ll pay nothing upfront for our services. We only get paid when we win your case. If you’ve been affected by churning, don’t wait to take action. Find out your legal options by scheduling a free consultation at our Georgia law office today.
Call or contact us online to speak to a lawyer now.