What You Need to Know About Financial Advisor Misconduct

It is a financial advisor’s job to look out for a client’s best interests. Doing otherwise is against federal law. Unfortunately, not every professional advisor upholds the level of care and integrity required of their legal duty. Financial advisors of all types may engage in fraud or misconduct that results in significant financial losses for investors.

At Meyer Wilson, our award-winning advisor misconduct lawyers represent clients across Los Angeles, the state of California, and the U.S. in their pursuit of investment losses caused by negligence and misconduct.

Backed by a deep bench of attorneys with over 120 years of collective experience, we know how to fight back against advisors and companies that fail to meet their legal duties, and help clients seek the justice and recompense they deserve. To speak with an attorney about your financial advisor misconduct claim in California, contact us for a FREE consultation.

Why Choose Meyer Wilson?

• We exclusively handle fraud claims and class / mass torts, giving us specific subject-matter knowledge and a unique ability to handle complex claims.
• We have a group of proven professionals and highly accomplished attorneys recognized among The Best Lawyers in America® 2021.
• We have spent more than 20 years successfully representing wronged investors, and have recovered over $350M on their behalves.
• We have a wealth of resources to help each client, including strong relationships with expert witnesses and securities regulators in California.

What is Advisor Misconduct?

Advisor misconduct can involve a range of fraudulent and negligent actions. Financial advisors, by law, are obligated to act in their clients’ best interests. A negligent or intentional failure to do so may constitute a breach of this obligation, and give rise to claims from wronged investors who suffered financial losses as a result.

At Meyer Wilson, our securities litigation and arbitration team fights for investors in a range of advisor misconduct claims, including those involving:

• Breach of fiduciary duty. Depending on the client-counselor relationship, the advisor will have varying degrees of fiduciary duties. Breaching these duties in any way is misconduct.
• Best execution abuse. If the advisor or broker fails to use reasonable care in executing a client’s order at the best possible price given market conditions, it may constitute misconduct.
• Churning. Churning refers to buying and selling securities at an excessive or unnecessary amount, typically in order to earn commissions.
• Fraud. Knowingly or intentionally deceiving or manipulating a client to induce the purchase or sale of any financial security for the advisor’s gain.

Other forms of advisor misconduct include:

• Unsuitable recommendations
• Undisclosed conflicts of interest
• Unauthorized trading
• Overconcentration
• Misrepresentation and false information
• Ponzi and pyramid schemes
• Real estate scams
• Failure to supervise

Do You Have a Case?

If a financial advisor engages in acts of misconduct, he or she could face civil penalties. Although some forms of misconduct may qualify as crimes, a civil case brought against the individual by the injured client could result in payment for the latter.

If you have grounds for a case, you could receive a recovery of investment losses and other damages. However, prevailing in a civil claim requires Plaintiffs to prove four main elements:

1. First, your attorney from Meyer Wilson must prove that an advisor-client relationship existed at the time of the misconduct, giving the advisor certain duties of care to you.
2. Second, your attorney must show the advisor breached this duty of care to you, either carelessly or intentionally.
3. Third, your lawyer must establish that the breach of duty caused your damages.
4. Fourth, you must have proof of the losses you suffered.

Contact a California Financial Advisor Misconduct Lawyer

Advisor misconduct is not something to take lightly. You may have lost thousands of dollars because of your financial counselor’s mistake or fraud scheme. If an advisor or stockbroker compromised your future financial stability, you have rights.

To discuss your potential claim and available options, contact Meyer Wilson. Our legal team has helped thousands of clients since 1999, and is prepared to help you. With an office in Los Angeles, our advisor misconduct attorneys serve clients across California and beyond. Contact us for a free consultation.