Churning is a dangerous type of stockbroker misconduct that could take a financial toll on the client for the broker’s personal gain. Churning is a fraudulent activity that may result in commissions for the broker. The client could lose money while the stockbroker profits. If you believe you have been the victim of churning in California, contact the attorneys at Meyer Wilson immediately. We may be able to help you get back on your feet with a financial award from the at-fault broker.
Discovering that your stockbroker has not had your best interests in mind when you put him or her in control of your finances can be frightening. When you are not sure whom to trust, contact a lawyer at Meyer Wilson for counsel. We will work for you, the client, and no one else.
Our main mission is to help you achieve justice and a compensatory award for your damages. We can take steps toward these goals for you while you focus on moving forward. Our lawyers can identify the defendant(s), bring your claim by California’s deadline and help prove your case. We will fight hard, including taking your case to trial, in pursuit of full compensation.
Churning is a type of stockbroker or financial advisor misconduct in which the professional unnecessarily or excessively buys and sells securities on behalf of a client to generate profit through commissions. Although a broker may trade securities if it is in the client’s best interests, it is misconduct for a broker to do so to generate commissions. Churning is an unethical stockbroker practice that could lead to civil penalties. It is also illegal according to the U.S. Securities and Exchange Commission (SEC) Rule 15c1-7.
SEC Rule 15c1-7 defines any securities purchase or sale by a stockbroker, dealer or municipal securities dealer that is excessive in size or frequency according to the circumstances of the account as fraud. Churning may only exist if the broker guilty of this misconduct had control over the investment decisions within the client’s account at the time of the trading. If you believe you have a case of churning, you may be eligible for financial compensation from the fraudulent stockbroker.
The best way to pursue compensation after discovering churning is to hire an attorney from Meyer Wilson. Our lawyers have spent years speaking up for the best interests of victims of financial fraud and can help you work through your case. In California, you have three years from the date you discovered the fraud, or the date you reasonably should have discovered it, to bring your civil lawsuit against a stockbroker and/or investment firm. Contact a lawyer as soon as possible upon realizing that a broker may have taken advantage of you.
Churning could cost a client thousands of dollars while the fraudulent stockbroker earns a profit in commissions. At Meyer Wilson, we are passionate about protecting vulnerable clients from fraud and deceit. We have committed our professional lives to preventing these crimes and assisting victims in bringing civil lawsuits. We may be able to help you bring a claim as well. Learn more about your right to bring a lawsuit today, during a free consultation at our California law office. Call (614) 532-4576 to speak to a lawyer now.