Churning involves the excessive buying and selling of securities within a client’s brokerage account for the sole purpose of generating commissions. Although churning is fairly common in New York and nationwide, it is both unethical and illegal.
After realizing your financial advisor lost your money by churning your investments, you may feel betrayed, angry, and embarrassed. You may also worry about the future. A New York investment fraud lawyer from Meyer Wilson may be able to help.
Our excessive trading/churning lawyers in New York are here to hold the unscrupulous advisor accountable and seek the financial award you deserve. We typically do this through arbitration but will litigate your case if needed. Learn more during a free consultation.
Why Choose Our Law Firm for Your New York Investment Churning Case?
When it comes to cases involving churning stocks or other investments, choosing a law firm that aligns with your needs is crucial. Meyer Wilson stands at the forefront of the fight against investment fraud in New York and across the nation.
Here are a few of the ways our firm stands out:
- Collective legal experience spanning over 75 years
- A history of securing exceptional outcomes for our clients, with a total amount surpassing $350 million
- The prestigious accolade of being recognized as the 2024 Best Lawyers in America
- A fearless approach to confronting formidable opponents
- Aggressive legal strategies
- A contingency-fee payment plan, which means we only collect attorney’s fees upon successfully recovering money for them
At Meyer Wilson, our churning lawyers serving New York have a proven track record of success in cases involving churning and other common misconduct claims. Our focus is on defending your interests, navigating the legal system for you, and working to recoup your hard-earned money.
Identifying the Signs of Churning
Investing savvy isn’t just about choosing the right stocks or bonds; it’s also about recognizing when a financial professional might not be prioritizing your best interests. Understanding the indicators of churning is your first line of defense in protecting your investments.
Keep an eye out for these warning signals:
- More frequent trade confirmations than usual
- An excessively high turnover ratio in your portfolio (typically four to six times or more)
- Advisors who are overly aggressive or neglectful of your portfolio
- Discrepancies between your returns and general market performance
- Investments that seem misaligned with your financial goals
- Surprising fees and commissions that weren’t explained upfront
- A lack of communication from your financial advisor
- A portfolio that lacks diversification
- Underperforming investments without clear justification
Should you detect any of these issues in your account, it’s crucial to take action. Reach out to Meyer Wilson for a free consultation. If churning has already impacted your finances, you may have a case for compensation from the responsible financial professional or their firm.
Our team is here to guide you through arbitration or pursue a civil lawsuit or class action to recover what you’ve unjustly lost.
What Exactly Is Arbitration?
Our approach to resolving churning cases is usually FINRA arbitration, a process in which a panel of neutral arbitrators examines the evidence, listens to arguments from both sides, and delivers a binding verdict. This method offers a streamlined, less costly, and faster alternative to traditional litigation.
During arbitration, several critical factors are assessed to build a churning claim:
- Turnover rate: We measure the total value of purchases in relation to the portfolio’s average net worth or equity to determine whether the turnover rate is excessive.
- Control of the account: We must demonstrate that your advisor had discretionary control over your account.
- Excessive commissions and fees: We work to uncover evidence showing that the costs of transactions significantly outweighed their potential benefits.
- Record-keeping: The arbitration process values the thoroughness and accuracy of financial records, including account statements and communications. We help you compile this evidence.
- Breach of fiduciary duty: Not all financial professionals have a fiduciary duty, but some do. Either way, we will work to prove that your advisor failed to act in your best interest.
If you’re dealing with the repercussions of stock churning or excessive trading, our team at Meyer Wilson is ready to stand by your side. Allow one of our excessive trading/churning attorneys serving New York to guide you through the arbitration process and work towards recovering financial damages on your behalf.
Schedule a Free Case Evaluation With a New York Churning Lawyer
At Meyer Wilson, we stand at the forefront of the battle against detrimental practices such as churning investments. Our team of skilled New York excessive trading/churning lawyers solely focuses on identifying fraudulent activities and securing maximum compensation for victims.
Excessive trading can have a devastating impact on your investment portfolio, undermining your financial goals. Selfish and dishonest advisors must be held accountable for their actions. With a wealth of experience and vast resources at our disposal, our firm is well-equipped to support you in seeking damages.
Contact us today for a free consultation and take the first step towards safeguarding your investments.