You trust your financial advisor to make sound investments on your behalf. Unfortunately, your advisor could engage in excessive trading or churning that results in substantial financial losses. In this scenario, let a Columbus excessive trading / churning lawyer review your case and discuss your legal options with you.
Meyer Wilson has more than 75 years of combined legal experience on our team. Have an investment fraud lawyer in Columbus from our team examine your excessive trading / churning case and help you determine what to do next. Consult with our team.
What is Excessive Trading and Churning?
Sometimes called market timing or frequent trading, excessive trading involves making many trades in a short period of time in an attempt to capitalize on market movement or price differences. At this point, a financial advisor focuses on generating commissions or fees and ignores their obligations to their client. Signs of excessive trading can include:
- A high volume of short-term trades or in-and-out purchases
- Significant commissions or fees if a financial advisor completes transactions
- Many investments are made that do not align with a client’s risk tolerance or portfolio objectives
Churning is considered a more serious form of excessive trading. It happens when a financial advisor completes an above-average volume of trades in spite of their client’s best interests and with the intent to defraud this individual. A Columbus excessive trading / churning attorney can provide insights into how to prove churning and other forms of investment fraud.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
What to Do if You Believe You Are the Victim of Excessive Trading or Churning
Take legal action if you believe you are the victim of excessive trading or churning. Connect with an excessive trading / churning lawyer in Columbus, OH, who will give your case the attention it deserves. Here are steps to help you determine if an excessive trading or churning claim is warranted.
Review Your Account Statements
Find out how frequently your financial advisor is making trades. If you notice many trades are completed and they deliver little to no return on investment, this could indicate that your advisor is churning investments.
An excessive trading / churning attorney in Columbus, OH, can help you deal with this issue and define reverse churning and other legal terms relating to your case.
Document Investment Churning Activities
Saying you are the victim of a financial advisor’s stock churning is not enough to argue your case against them. It pays to document the dates and times of conversations with your financial advisor and gather other proof.
If you have compelling evidence that your advisor has been churning stocks, you are well-equipped to hold them accountable for their actions.
Notify the Financial Industry Regulatory Authority (FINRA)
At one point, FINRA proposed a wider net to capture churning brokers. The agency remains accessible to victims of excessive trading and other forms of investment fraud. Submit a complaint to FINRA, and the agency can investigate your financial advisor’s actions and determine whether to impose sanctions or other penalties.
Meyer Wilson understands the challenges you can face when trying to prove that a financial advisor committed excessive trading or churning. We can give you insights into how to file a complaint with FINRA and pursue compensation from a financial advisor or other liable parties. Request a consultation with our team.
Factors that Can Help You Prove You Have a Valid Columbus Excessive Trading / Churning Case
Control is a key element in an excessive trading or churning claim. In your case, you must prove that a financial advisor had express or implied control over your investment portfolio. You could validate this point if you have a discretionary trading agreement that confirms you have given a financial advisor the authority to make trades for you.
Along with this, you must verify that there was excessive trading activity. Cost-to-equity and annualized turnover ratios may help you determine if this was the case. A cost-to-equity ratio tracks the return on investment you need to “break even,” and an annualized turnover ratio accounts for your total yearly costs divided by your average account balance.
It also helps to have proof indicating that a financial advisor chose to disregard your best interests or wanted to defraud you. This can be difficult, and you may have to search far and wide for proof that supports your argument. Your lawyer can look for evidence that highlights that a financial advisor may have had a conflict of interest or engaged in reckless behavior.
Our lawyers are nationwide leaders in investment fraud cases.
Our Columbus Excessive Trading / Churning Lawyers Offer Experienced Legal Representation
Excessive trading and churning are major problems that can put you in a financial bind. You do not have to stand pat if you believe a financial advisor committed either or both of these acts against you. An excessive trading / churning lawyer can serve as your legal representative and seek compensation for your losses.
Meyer Wilson has represented thousands of clients in investment fraud cases over the years. Our team prioritizes investors’ rights and will do everything we can to assist you with your excessive trading or churning case. Schedule a consultation with our team.
Recovering Losses Caused by Investment Misconduct.