Entrusting your money to an investment firm is one of the best ways to grow your savings. However, it’s important that you conduct thorough research into any brokerage firm before investing with them, as investment fraud is a serious problem that can lead to significant financial losses.
At Meyer Wilson, we have assisted countless investment misconduct victims in getting damages from those liable for their damages. Our experienced team of investment fraud lawyers serving Tennessee, is ready and waiting to get started on your case. Reach out today to schedule a free, no-obligation case evaluation with a member of our legal team.
The Many Forms of Investment Fraud
Investment fraud can take many forms. Over the 25+ years since our firm was founded, our team of investment fraud attorneys has helped our clients recover damages caused by every type of investment fraud out there. Some of the most common types of investment fraud cases we handle include:
- Broker negligence
- Failure to supervise
- Unauthorized trading
- Breach of fiduciary duty
- Asset allocation misconduct
Broker Negligence
Financial brokers are required to ensure they treat their clients’ money responsibly. If broker negligence leads to significant financial losses for a client, an experienced securities fraud attorney can help you take legal action against the at-fault broker.
Failure to Supervise
In addition to the broker who committed investment fraud, the brokerage firm can also be held liable for any damages incurred by an investor. Investment firms have a legal duty to properly supervise the actions of their employees to ensure they comply with all rules and regulations.
If a broker acts in an unethical, illegal, or irresponsible manner that results in losses to a client’s investment, the brokerage firm can be held accountable for said losses. An experienced investment fraud attorney in Nashville, TN, can help you seek compensation from both the broker and the brokerage firm.
Unauthorized Trading
Investment brokers are not allowed to make trades with a client’s money unless they first obtain authorization. A client can authorize a trade in two ways. First, they can approve a specific transaction that a broker proposes to them. Alternatively, they can agree to a range of trades that meet certain criteria when signing their investment contract with their broker.
If a broker makes a trade without the necessary approval, they can be held liable for any financial losses incurred by their client as a result.
Breach of Fiduciary Duty
Investment advisors are held to a high standard of fiduciary responsibility due to the fact that they often handle the bulk of their clients’ savings. If the advisor loses the money of their client, they have the potential to plunge them into financial ruin.
Before suggesting an investment opportunity to a client, an advisor must first thoroughly review the investment, perform due diligence, weigh the potential risks against the benefits, provide the client with accurate and detailed information, and ensure the investment is aligned with the investment strategy they have created for the client.
Asset Allocation Misconduct
When determining how to divide the investment of a client among different asset classes, a financial advisor needs to consider the client’s risk tolerance level. Some of the asset types your broker can choose to allocate your investment amongst include:
- Stocks
- Real estate
- Natural resources
- Foreign currency
- Bonds
- Cash
In most cases, younger investors are better served by a portfolio that contains a high level of risk, as these strategies often result in the largest returns. While a high-risk strategy can mean that the client will suffer down years in which they will lose money, the market will rebalance over time, and they should recoup any temporary losses.
On the other hand, an older investor will likely be best served by a portfolio with minimal risk to help ensure they will gain money year-over-year. To achieve the aims of these strategies, it tends to be better to bundle a younger client’s investment into a small number of asset types while spreading the money of an older client among a wider range of asset classes.
If your broker invests your money among asset classes in a manner that is counter to your level of risk tolerance, they can be held liable for any resulting losses.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Reasons to Work With Meyer Wilson
At our firm, we have an award-winning team with 75+ years of experience that has helped shape us into one of the leading investment fraud legal firms in the United States. Over the years, our team has managed to successfully recover upwards of $350 million for our clients. Some of the things that set us apart from the competition include:
- The integration of state-of-the-art technology into various processes in our firm which helps improve our chances of success while providing our clients with the best experience possible
- The fact that we assume every case will go to trial from the start which ensures we are prepared to go to court if necessary while also increasing our leverage in negotiations
- Our use of a contingency fee-based payment system which gives our clients the peace of mind that they won’t have to pay for legal services unless they recover compensation
- The fact that we maintain a small caseload so that we can provide every client with the personalized attention they need
Determining Whether You Were the Victim of Investment Fraud
If you lost a significant amount of your investment, you will likely be wondering about the cause of these losses. A variety of factors could be to blame, including investment fraud, other illegal activity, natural fluctuations in the market, and uncontrollable events.
If you think that investment fraud may have occurred, you can go over this checklist of investment fraud red flags provided by the Securities and Exchange Commission (SEC). If you notice anything on this list that sounds similar to your experience, it may be time to get in touch with an experienced securities fraud lawyer.
Our lawyers are nationwide leaders in investment fraud cases.
Secure the Services of an Experienced Nashville Investment Fraud Attorney Today
After losing money due to investment fraud, the best way to ensure you recover the compensation you need is by hiring an experienced investment fraud lawyer. At Meyer Wilson, our team has a proven history of winning big for our clients.
Contact us by giving us a call or filling out our contact form to schedule your free case evaluation today.
Recovering Losses Caused by Investment Misconduct.