Los Angeles Broker Misconduct Lawyer

If you suffered investment losses of more than $100,000 due to the misconduct of a broker, Meyer Wilson Werning can help. Our Los Angeles broker misconduct lawyers handle cases involving churning, unauthorized trading, excessive use of margin, and other forms of broker misconduct. 

We handle broker misconduct claims only when a broker or financial advisor was directly involved in the investment or account management, and do not pursue losses tied to standalone scams or social media schemes.

Contact a securities and investment fraud lawyer serving Los Angeles today to discuss your case during a free initial consultation. All cases are handled on a contingency basis.

Types of Broker Misconduct Cases Our Lawyers Handle

Our California securities and investment fraud lawyer from Meyer Wilson Werning represents investors who have suffered losses due to unethical or negligent actions by brokers. 

If you’ve experienced financial losses due to any of the following forms of misconduct, Meyer Wilson Werning can help you seek recovery and hold your broker or brokerage firm accountable. 

Unauthorized Trading

A broker who makes trades without your knowledge or approval engages in unauthorized trading. Brokers are required to obtain explicit permission before executing any transaction unless you have granted them discretionary authority in writing. 

Unapproved trades can cause losses, especially if the investments are high-risk or unsuitable for your objectives.

Churning

Excessive trading, or churning, prioritizes the broker’s financial gain, through commissions, over the client’s investment goals, often leading to unnecessary fees and losses. Churning drains your account and violates the broker’s obligation to act in your best interest.

Misrepresentation or Omission

A broker may give you false or misleading information about an investment or withhold details that could influence your decision to invest. They may do this to make an investment seem more appealing or less risky than it actually is by overstating potential returns and downplaying risks.

These actions violate a broker’s obligation to provide accurate, transparent information and can leave you with investments that don’t match your risk tolerance. 

Failure to Supervise

Brokerage firms have a legal duty to supervise their brokers and ensure their activities comply with regulatory standards and ethical practices. When firms fail to monitor their employees adequately, brokers may engage in unauthorized trading, churning, or other forms of misconduct. 

Failure to supervise can expose investors to unnecessary risk and financial harm. Brokerage firms can and should be held accountable when their lack of oversight contributes to client losses.

Overconcentration

Diversification in a portfolio allows for sound investing, and failing to diversify increases your exposure to market downturns or specific investment failures. A broker engages in overconcentration when they allocate too much of your portfolio to a single investment, industry, or asset class.  

If your broker overconcentrates your portfolio in a single stock or sector and that investment performs poorly, the impact on your finances can be devastating. Overconcentration often results from negligence or a broker’s failure to understand your risk tolerance and financial goals.

Understanding Arbitration in Securities Disputes

Our broker misconduct lawyer serving Los Angeles is experienced in handling arbitration, which is the most common process for resolving disputes between investors and brokers. Arbitration is different from mediation, as it involves presenting your case to a panel of one to three arbitrators who review evidence, hear testimony, and issue a binding decision, similar to a jury verdict.

The arbitration process includes opening statements, questioning witnesses, submitting evidence, and making legal arguments. Most securities disputes are resolved through arbitration with the Financial Industry Regulatory Authority (FINRA), which is private, and hearings are not open to the public.

In most cases, investor-broker agreements include an arbitration clause requiring disputes to be resolved through arbitration instead of in court. Court cases are rare but may occur if no arbitration clause is in place. FINRA’s arbitration process typically leads to faster resolutions and provides a structured process to recover financial losses.

Why Choose a Broker Misconduct Attorney From Meyer Wilson Werning?

Meyer Wilson Werning has recovered over $350 million in case results for thousands of clients nationwide, backed by more than 75 years of combined experience in investment fraud and broker misconduct cases. Our previous case results reflect significant recoveries but do not guarantee future outcomes.

Founding attorney David Meyer is a national leader in securities fraud litigation, having served as president of three bar associations, including PIABA, the international bar of investment fraud attorneys. In this role, he collaborated with the SEC, FINRA, Senate offices, and other policymakers to advocate for stronger securities laws and investor protections.

Our broker misconduct attorneys serving Los Angeles are trial-ready, prepared for arbitration or litigation, strengthening our ability to negotiate. With a low client-to-lawyer ratio, we provide personalized and focused attention to every case.

Potentially Recoverable Losses in a Broker Misconduct Claim

Pursuing a claim against a broker for misconduct centers on recovering your financial losses and holding the broker accountable for their actions. It also provides an opportunity to seek justice and recover your losses due to the financial harm you and your family suffered.

Our broker misconduct attorney serving Los Angeles may be able to recover:

• Financial losses caused by unsuitable recommendations, unauthorized trading, churning, or other misconduct
• Interest or penalties incurred due to the broker’s actions
• Legal expenses, including attorney’s fees, if recoverable under the law
• Punitive damages in cases involving egregious or intentional misconduct

Claims Involving Financial Advisors or Brokers

Meyer Wilson Werning focuses exclusively on cases where a financial advisor or broker was involved in the misconduct. Our firm does not handle claims against anonymous online scammers, such as those operating through fake investment platforms or social media schemes. 

If your losses stemmed from misconduct by a trusted financial professional or brokerage firm, you may have a valid claim.

Our Broker Misconduct Attorney Serving Los Angeles is Here for You

If you’ve suffered financial losses due to broker misconduct, our broker misconduct lawyer serving Los Angeles is here to help. FINRA arbitration is the primary process for resolving these disputes, and our team has over 75 years of combined experience representing investors in cases like yours.

Contact Meyer Wilson Werning today for a free consultation. We work on a contingency basis, so there are no upfront costs.