Investing your money with a brokerage firm can be one of the best moves you can make for your financial future. However, doing so also may put you at risk for investment fraud or other mismanagement of your funds that can lead to substantial losses. Thoroughly researching an investment firm before entrusting them with your money can help minimize the risk.
At Meyer Wilson, we understand the challenges that investment fraud victims face. Our team of experienced investment fraud lawyers serving New York, will work around the clock to help ensure a favorable outcome for your case. Get started today by scheduling your free consultation over the phone or through our website.
Various Types of Investment Misconduct
Investment fraud is a catch-all term for a wide range of misconduct in the financial sector. During the 25+ years our firm has been representing investment fraud victims, we have handled cases involving every type of investment fraud imaginable. Some of the cases we see most often include:
- Broker negligence
- Asset allocation misconduct
- Failure to supervise
- Unauthorized trading
- Breach of fiduciary duty
When handling the money of investors, a financial broker must take all the necessary steps to ensure they are making the best decisions with their client’s money. If a broker is negligent in their duty and fails to ensure they are investing your money wisely, an experienced securities fraud lawyer can assist you in filing a lawsuit against your broker for damages.
Asset Allocation Misconduct
One of the most important things for a financial advisor to consider when investing the money of a client is how to distribute their investment among different asset classes. This determination is typically based on the risk tolerance of the investor. Some of the asset types into which investments are most commonly allocated include:
- Real estate
- Natural resources
- Foreign currency
In some situations,t, younger investors have a higher tolerance for risk than older investors. Because of this, the best allocation strategy for those young investors may be to pool their money into a limited number of asset types. While this can lead to short-term losses at times, the market will eventually rebalance, and the gains can be substantial.
With older investors, a more conservative approach is typically best. Investing their money in a wide range of asset classes can help create stability and ensure gains year-over-year.
If your broker does not distribute your money among asset types in a manner that aligns with your risk tolerance level, they can be held responsible for any losses you suffer.
Failure to Supervise
A broker who commits investment fraud is not alone in their liability for any losses incurred by their clients as a result. The investment firm that employs them can also be held responsible. These firms have a legal responsibility to supervise their employees properly to ensure they comply with all laws and regulations.
If a broker conducts themselves in a manner deemed irresponsible, unethical, or illegal, the brokerage firm they work for can be held liable for any resulting losses. An experienced investment fraud attorney servingin Brookhaven, NY, can help you seek damages from both your broker and the brokerage firm handling your money.
Before making trades with a client’s money, investment brokers must first obtain authorization. A client can provide their broker with this authorization in two main ways. The first is to approve any trade proposals directly at the time they are made. The second is to approve a range of trades within certain parameters as outlined in the terms of an investment contract.
If a financial broker conducts trades they are unauthorized to make, they can be held liable for any losses incurred by their clients.
Breach of Fiduciary Duty
The law holds investment brokers to a high level of fiduciary responsibility. Since these brokers often handle the bulk of their clients’ savings, they have the potential to leave them bankrupt if they mismanage their money.
When suggesting an investment opportunity to a client, a financial broker must conduct all due diligence to ensure the move is in their client’s best interest. This includes thoroughly reviewing the details of the investment, weighing the risks and rewards, providing full and accurate information to the client, and ensuring the investment aligns with the client’s investment strategy.In many instances, the broker has a fiduciary duty to act in your best interest.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Identifying Investment Fraud
After investing your money with a broker and suffering significant financial losses, you will likely be curious about the cause. While investment fraud is one possible answer, other illegal activity, natural market fluctuations, and unforeseeable events can also play a role.
If you suspect that you were the victim of investment fraud, you can peruse this checklist of investment fraud red flags created by the Securities and Exchange Commission (SEC). If anything on this list rings a bell, you might want to consider reaching out to an experienced securities fraud attorney for help.
Reasons to Choose Meyer Wilson
With an award-winning team that boasts more than 75 years of experience handling investment fraud cases, our firm is one of the leading investment fraud law firms in the US. Over the decades, we have successfully secured upwards of $350 million on behalf of our clients. Some of the reasons to choose us over the competition include:
- We keep our caseload small, which allows us to ensure each of our clients receives the personalized attention necessary for their case.
- Our preparation has us assuming that every case will end up going to trial, ensuring we are prepared if a trial proves necessary while increasing our leverage in settlement negotiations.
- Our integration of state-of-the-art technology into various processes throughout our firm.
- The fact that we charge our clients on a contingency fee basis means they can rest easy knowing they won’t have to pay for our services unless they recover damages.
Our lawyers are nationwide leaders in investment fraud cases.
Hire an Experienced Investment Fraud Attorney Serving Brookhaven Investment Fraud Attorney Today
Following losses suffered due to investment fraud, hiring an experienced investment fraud attorney is the best way to protect your financial future and ensure you recover the money you need and deserve. At Meyer Wilson, our team has a long history of securing favorable outcomes for our clients.
Contact us by phone or through this website to schedule your free, no-obligation case review with a member of our legal team today.
Recovering Losses Caused by Investment Misconduct.