One of the best moves you can make for your financial future is to invest your money with an investment firm. Unfortunately, doing so will also leave you susceptible to investment fraud, which is a growing problem in the financial industry that can result in significant losses. Researching an investment firm before letting them handle your money can prove critical.
At Meyer Wilson, our team of investment fraud lawyers serving Pennsylvania have a thorough understanding of all the different types of investment fraud our clients face. We will work tirelessly to ensure you recover any losses you suffer. Schedule your free consultation with a member of our legal team today.
The Varied Forms of Investment Misconduct
When talking about investment fraud, there is a wide variety of types of misconduct that this term covers. Over the 25+ years since the founding of our firm, we have helped victims who have suffered all types of investment fraud. The most common cases we see include:
- Broker negligence
- Asset allocation misconduct
- Failure to supervise
- Breach of fiduciary duty
- Unauthorized trading
When a broker takes on the money of a client, they have a duty to do their best to ensure financial growth. If they are negligent in this duty and the result is a loss in your investment, an experienced securities fraud attorney can help you file a lawsuit to recover your losses.
Asset Allocation Misconduct
When determining how to distribute your money among different asset types, one of the main things your financial advisor needs to take into account is the level of risk you can afford to take on. Some of the asset classes into which your broker is most likely to invest your money include:
- Foreign currency
- Natural resources
- Real estate
Most of the time, younger investors can tolerate more risk due to the fact that they can absorb short-term losses as long as they record long-term gains. Because of this, investing their money in only a few asset types may be the best course of action because, although they can suffer down years, the return on investment when the market rebalances is often substantial.
On the other hand, older investors are more risk-averse. For these investors, an approach of spreading their money evenly over a wide range of asset types is far more likely to result in positive returns year-over-year.
If your broker distributes your money among asset classes in a manner that contrasts your level of risk tolerance, they can be held accountable for any losses you incur.
Failure to Supervise
When a broker commits investment fraud and their client loses money as a result, the brokerage firm that employs them can also be held liable. These firms have a legal responsibility to supervise the activity of their employees to make sure they are complying with all relevant laws and regulations.
If your broker fails to behave in a responsible, ethical, and legal manner, resulting from a failure to supervise on behalf of the investment firm that employs them, an experienced investment fraud attorney in Pittsburgh, PA, can help you pursue compensation from both the broker and brokerage firm.
Breach of Fiduciary Duty
Under the law, investment advisors are held to a high level of fiduciary responsibility. Because investors often entrust advisors with the bulk of their savings, the potential for harm to their financial future if their broker engages in unethical behavior is quite high.
When proposing an investment opportunity to a client, investment advisors must perform all of the necessary due diligence, including thoroughly reviewing the details of the investment, assessing the risks and rewards, giving their client full and accurate information about the investment, and ensuring the opportunity aligns with the investment strategy of the client.
For a broker to make trades with their client’s money, they must first get authorization. An investor can authorize a trade in two main ways. First, they can approve an individual trade proposal presented by their broker directly. Alternatively, they can approve a variety of trade types that meet certain criteria through the signing of their investment contract.
If your investment broker makes trades with your money without first obtaining the proper authorization, you can hold them liable for any resulting losses.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Why Work With Meyer Wilson?
With over 75 years of combined experience, our award-winning team of investment fraud lawyers has helped make us one of the top investment fraud legal firms in the United States. Through the years, we have managed to secure well over $350 million for our clients from those responsible for their losses.
Some of the ways in which we stand out from our competitors include:
- Our use of state-of-the-art technology throughout the process of pursuing compensation.
- The fact that we keep our caseload small, allowing us to provide each of our clients with with the personalized attention needed for their case.
- Our process of preparing every case for court from the start, ensuring we are ready if a trial proves necessary while increasing our leverage in settlement negotiations.
- Our contingency fee payment structure gives our clients the peace of mind that they will only have to pay for legal services if we secure compensation on their behalf.
Determining Whether Your Losses Were Caused by Investment Fraud
When you invest your money with a broker and end up losing a significant amount of money, you will likely be curious about the cause of your losses. In addition to potential investment fraud, other illegal activity, unpredictable events, and natural fluctuations in the market can all be to blame.
If you think you may have been the victim of investment fraud, you can review the checklist of investment fraud red flags compiled by the Securities and Exchange Commission (SEC). If things on this list are familiar to your situation, you might want to consider contacting an experienced securities fraud lawyer today.
Our lawyers are nationwide leaders in investment fraud cases.
Get Help From an Experienced Pittsburgh Investment Fraud Attorney Today
After being victimized by a broker engaging in investment fraud, the best way to increase your chances of recovering the compensation you need and deserve is by securing the legal services of an experienced attorney. At Meyer Wilson, we have helped countless investment fraud victims recover the compensation they need.
Contact us via phone call or through our website and schedule your free initial case consultation with a member of our team today.
Recovering Losses Caused by Investment Misconduct.