What Happens if a Stockbroker Loses Your Money?

Entrusting your money with a stockbroker can help you make smart investment decisions. That said, just because stockbrokers are professionals, it doesn’t mean they are immune to mistakes or that they always have your best interests in mind. In fact, investors lose their hard-earned money to negligent and dishonest stockbrokers every year.

If a stockbroker has lost your money after making a mistake or engaging in fraudulent practices, you have the right to seek compensation. At Meyer Wilson, our team has over 75 years of combined experience helping investors like yourself pursue justice. Our Ohio investment fraud lawyers can represent you and fight for the outcome you deserve.

Can I File a Claim if a Stockbroker Lost My Money?

Since most investments come with some level of risk, you’re not automatically eligible to seek damages from your stockbroker just because you suffered a loss. You’ll only be able to file a complaint against your broker if their negligence or other misconduct was the cause of your financial loss.

Under many circumstances, when you work with a broker, they take on a fiduciary duty to provide a certain standard of care when managing your investments. If they fail to comply with the rules set forth by the Financial Industry Regulatory Authority (FINRA), causing you to lose money, you may have grounds for a legal claim.

Proving that a Stockbroker Is Liable for Losing Your Money

When taking legal action against a stockbroker, you’ll need to provide evidence that shows they are liable for your losses. Gathering evidence and crafting a compelling legal argument can be difficult, but with the help of a seasoned attorney, you will be more likely to be able to establish liability.

A trusted lawyer can investigate your case, analyze the evidence they find, and use their findings to establish the following elements of negligence:

• The broker owed you a fiduciary duty or establish the appropriate duty of care
• The broker failed to uphold the fiduciary duty or other duty of care
• The broker’s actions caused you to suffer financial losses

Regardless of whether your broker breached the f duty due to an unintentional mistake or a purposeful act, you may be able to take action against them if the above-listed statements are true. 

Types of Stockbroker Negligence and Misconduct You Can Seek Damages for

There are many forms of stockbroker misconduct and negligence that warrant a legal complaint. Familiarizing yourself with the following forms of negligence and fraud can help you determine if you’re eligible to seek financial remedies for an investment loss:

• Failures of best execution
• Unsuitable recommendations
• Unapproved and illegal investments 
• Misrepresenting facts
• Unauthorized trading
• Broker theft
• Churning
• Forging documents
• Ponzi schemes
• Overconcentration 

If you’ve fallen victim to one of the above-listed forms of negligence or misconduct, you’ll want to get in touch with an attorney. A lawyer can help you file a complaint and represent you during legal proceedings. Ultimately, your attorney will fight to obtain compensation for your losses.

How an Attorney Can Help You Get Your Money Back

Pursuing compensation from a stockbroker that lost your money can be incredibly challenging. Obtaining a fair settlement may require several time-consuming steps, including an arbitration hearing during which both sides present evidence and legal arguments.

The best way to get a successful outcome from this legal process is to hire a knowledgeable and experienced attorney. A skilled lawyer can take the following steps to recover financial remedies:

• Investigate the stockbroker’s conduct
• Work with forensic experts to gather evidence
• Use evidence to construct a strong FINRA complaint
• Represent you during mediation and arbitration
• Work hard to convince arbitrators to rule in your favor
• Offer clear legal advice and guidance throughout the entire process

Damages You Could Receive if a Stockbroker Lost Your Money

Before your lawyer files a complaint against the stockbroker, they’ll review the losses you’ve taken on and calculate how much your claim is worth. Then, they’ll work hard to recover the correct amount of compensation on your behalf. If all goes well, you could benefit from any of the following forms of compensation:

• Trading losses
• Money your investment would have made if it was handled properly
• Interest
• Dividends
• Punitive damages

Losing money after investing with a careless or dishonest stockbroker can be frustrating, but these damages can help replace your losses and restore your confidence in your future as an investor. That said, recovering these remedies can be difficult, if not impossible, without a skilled lawyer. To get the most out of your claim, get in touch with a seasoned attorney. 

Schedule a Free Consultation With an Experienced Lawyer

Now that you know what you can do if a stockbroker loses your money, it’s time to seek experienced legal guidance and representation from the team at Meyer Wilson. Our team can thoroughly investigate your case, file an effective FINRA complaint on your behalf, and fight tirelessly to obtain a fair ruling from the arbitration process.

Contact us today to schedule a free consultation with an attorney from our firm and learn more about your options moving forward. If you decide to work with us, you can rest assured that we have the resources and legal knowledge required to get the best result possible.