If you have incurred more than $100,000 in financial losses due to churning by a stockbroker, brokerage firm, or financial professional, now is a good time to seek legal help. Talk with a Cleveland churning (excessive trading) lawyer, and they can explain your legal options for financial recovery.
Meyer Wilson Werning has a legal team with more than 75 years of combined experience. Our Cleveland investment fraud lawyers can evaluate your churning case and, if warranted, represent and advocate for you as part of a claim against any responsible parties.
In your case, we can perform an investigation, request the recovery of your financial losses, and seek to hold responsible parties accountable for excessive trading. Meanwhile, we don’t take on a large caseload, and we have the legal team and resources available to help you at each stage of your case. To find out more, schedule a free consultation.
What Is Churning?
Churning refers to an illegal and unethical practice in which a financial broker engages in excessive buying and selling of securities in a client’s account, primarily to generate commissions. Here are the key aspects of churning:
- Broker control: A broker has actual or implied control over trading in their client’s account.
- Excessive activity: The volume and frequency of trades don’t align with their client’s stated investment goals, risk tolerance, or financial situation.
- Intent to defraud: A broker executes trades with the intent to rack up fees rather than to benefit their client.
As you search for a Cleveland churning (excessive trading) attorney, consider Meyer Wilson Werning. Our team has served thousands of clients nationwide. We can explain churning and determine whether you have grounds for a Financial Industry Regulatory Authority (FINRA) claim. Reach out to us for more information.
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Warning Signs of Churning
Talk with an Ohio investment fraud lawyer as you consider whether to proceed with a FINRA claim. Your lawyer can answer any questions you have about churning and the requirements for pursuing compensation for your broker’s excessive trading. Plus, they can describe the warning signs of churning, such as:
- Repeatedly buying and selling the same security or type of security within a short time frame
- A high annualized turnover rate (total purchases divided by the average monthly account equity)
- Trading costs and commissions that require your portfolio to achieve a massive annual return just to break even
- Significant commission costs and tax liabilities
Your lawyer wants you to report these and other indicators of churning to your broker’s compliance department, FINRA, and the U.S. Securities and Exchange Commission (SEC). Doing so can help you build a case for obtaining compensation based on your churning-related financial losses.
How to File a Cleveland Churning Claim
Allow a churning lawyer in Cleveland to guide you through FINRA arbitration. Your lawyer can provide insights into what arbitration with FINRA entails and the challenges you can encounter during this process. Below are details about the steps of FINRA arbitration:
- File a Statement of Claim. The arbitration process begins once you notify FINRA about your claim and submit relevant information about why you’re requesting compensation.
- Await the respondent. FINRA will serve your claim, and the respondent will generally have 45 days to file an answer, along with a formal defense or counterclaim.
- Select an arbitrator. You and the other party can choose one or more arbitrators to oversee your case.
- Attend an initial prehearing conference. This conference is used to establish dates and deadlines for the discovery process and further hearings.
- Complete discovery. In discovery, you and the other party can exchange financial records and other case evidence.
- Participate in evidentiary hearings. During these hearings, both sides can make opening statements, conduct witness examinations, provide documentary evidence, cross-examine the other side’s witnesses, and argue their respective cases.
- Receive a decision. The arbitrators in your case will usually issue a decision within 30 days.
Your excessive trading lawyer in Cleveland can share FAQs and other resources relating to FINRA arbitration. They can gather evidence from multiple sources to use in your argument. Plus, they can explore many legal avenues as they try to position you to secure fair compensation.
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Work with Our Cleveland Churning (Excessive Trading) Lawyers
The things you do in the aftermath of losing more than $100,000 due to excessive trading can affect you and your family for a long time. By meeting with our Cleveland churning attorneys, you can take the first step to ask any liable parties for compensation through a FINRA claim.
At Meyer Wilson Werning, we know you may only have one chance to recover compensation from those responsible for your financial losses from excessive account trading. With us, you have a legal team on your side that’s large enough to fight for your investment losses against powerful adversaries.
Let our lawyers review your excessive trading case. We’ll provide you with personalized legal support at each stage of your case proceedings. To get started, request a free consultation.
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