Investing is an important part of ensuring your economic well-being over time. However, while investing usually results in financial growth, it also leaves you open to potential losses through investment fraud and other misconduct. If you sustained losses, an experienced Memphis investment fraud lawyer can help you recover damages.
The Tennessee investment fraud lawyers have a long history of helping accident victims recover compensation for losses caused by investment misconduct. Our experienced investment fraud lawyers serving Memphis will do everything possible to ensure a favorable outcome for your case. Reach out to us today to set up a free case consultation.
The Different Forms of Investment Misconduct
Investment fraud does not refer to a specific offense. Instead, this is an overarching term that covers several types of misconduct. Since we founded our firm over 25 years ago, we have handled dozens of different types of investment fraud. Our Memphis team includes:
- Failure to supervise lawyers
- Unauthorized trading lawyers
- Asset allocation misconduct lawyers
- Broker negligence lawyers
- Breach of fiduciary duty lawyers
Failure to Supervise
The law stipulates that brokerage firms must take every reasonable precaution to prevent investment fraud by their employees. If you sustained losses because your financial advisor was acting illegally or unethically, the brokerage firm where you invested your money may be liable for your damages.
An experienced investment fraud attorney serving Memphis can help you in your pursuit of compensation from both your financial advisor and the financial firm that employs them.
Unauthorized Trading
Financial advisors are required to get authorization from their clients before they can make any trades with the money they invested. This authorization is usually granted in one of two ways.
The first way to get authorization for a trade is by approaching a client directly with each investment opportunity. The client will then approve the trade on a case-by-case basis.
The other method for granting authorization is by approving trades that meet specific criteria, as detailed in the investment agreement you sign when you entrust your money to an investment firm.
Asset Allocation Misconduct
When a financial advisor is handling the money of a client, they need to take the proper steps to ensure they are investing their money between different asset classes in a manner that aligns with the needs of the client. Age and other factors all play a role in determining a client’s tolerance for taking on risk, which will guide how their money should be distributed.
The asset types into which a broker can divide the investment of a client include:
- Cash
- Real estate
- Bonds
- Stocks
- Natural resources
- Foreign currency
Although other factors can also contribute to how much risk an investor can comfortably take on, the primary consideration is typically age. Most of the time, an investor’s risk tolerance drops as they age.
While certain younger investors may be able to weather the storm of any down periods and wait for the market to rebound, most older investors need their life savings to be safe while growing at a reasonable rate.
Because of this, the money invested by older clients should typically be spread among several asset types to create stability. For those younger investors, putting their money into a limited number of asset classes with a higher growth potential may be the better move. If your advisor doesn’t consider your needs when distributing your money, they can be held accountable for your losses.
Broker Negligence
Investment brokers have a legal duty to take every step necessary to ensure they are investing the money of their clients in the best possible manner. If your broker is negligent in their duty and fails to handle your money in a proper manner, a securities fraud attorney can help you pursue damages through a lawsuit.
Breach of Fiduciary Duty
Many professionals working in the financial industry have a substantial fiduciary responsibility regarding the money they handle for clients. If your financial advisor or broker mishandles your investment, they can cause significant harm to your financial well-being.
When presenting you with an investment opportunity, your financial advisor must perform due diligence to ensure the investment is sound and a good fit for your financial goals. This includes learning everything about the investment, assessing the risks and rewards, and giving you detailed and accurate information about the investment.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
The Award Winning Team at Meyer Wilson Has Secured More Than $350 Million for Our Clients
With over 75 years of combined experience, the investment fraud attorneys at our firm have helped make us one of the leading investment fraud law firms in the United States. A few of the things that help us stand out from our competitors include:
- Our method of preparing every case for trial from day one ensures we are prepared for anything and gives us the upper hand in settlement negotiations
- The guarantee we give to all of our clients that they will only pay for our services if we recover damages on their behalf
- Our dedicated approach to our clients ensures that we can give each case the attention it deserves by maintaining a manageable caseload
- The fact that we employ state-of-the-art technology throughout our firm
Determining the Cause Behind Your Financial Losses
When you lose a significant amount of the money you invested with a financial institution, figuring out what went wrong can be difficult. However, making this determination can be critical, as you will only be able to recover damages under certain circumstances.
For example, if your losses were the result of an unexpected drop in the market but no corresponding misconduct of your advisor, you will not be able to collect compensation. However, if investment fraud or other misconduct was to blame, you may be eligible to file a lawsuit to recover the money you lost.
The Securities and Exchange Commission (SEC) is one of the governing body for the financial industry. To help protect investors, they have assembled this checklist of investment fraud red flags. If any of these red flags are familiar to your situation, it might be time to hire an experienced securities fraud lawyer.
Our lawyers are nationwide leaders in investment fraud cases.
Recover Compensation With the Help of an Experienced Memphis Investment Fraud Attorney Today
If you were the victim of investment fraud, hiring an experienced lawyer to help you recover compensation is the best way to ensure you recover the money you need. At Meyer Wilson, our team of investment fraud lawyers serving Memphis can greatly improve your odds of getting fair compensation for your losses.
Contact us to set up a free case review today. You can reach us by phone or by completing our online contact form to get started.
Recovering Losses Caused by Investment Misconduct.