When investing your money with a brokerage firm, you should be able to rest assured that your investment is in good hands. Brokers are supposed to take the money they receive from their clients and invest it wisely to help ensure healthy financial growth. Unfortunately, investment fraud is common and can lead to substantial financial losses.
At Meyer Wilson, we have a proven track record of helping investment fraud victims recoup their losses from stockbrokers and the firms that employ them. Our team of investment fraud attorneys serving residents of Texas can help you pursue the compensation you deserve. Get help today by giving us a call or using our online contact form and scheduling your free case evaluation.
There Are Many Types of Investment Misconduct
At our firm, we have handled a wide variety of investment fraud claims over the past 25+ years. Among the investment fraud cases we most frequently handle are claims involving:
- Unauthorized trading
- Broker negligence
- Asset allocation misconduct
- Breach of fiduciary duty
- Failure to supervise
When you sign an investment contract with a broker, the terms regarding what they are allowed to do with your money will be clearly defined. Depending on how the contract is structured, your broker may have a fair amount of leeway to make moves with your money without getting express consent each time.
However, even if your broker has a fair amount of freedom to move your money as they see fit, there are always going to be limitations to what they can do without first contacting you for approval. If your broker makes a trade with your investment that falls outside their authority, an experienced securities fraud lawyer may be able to help you recover damages.
Financial brokers must use great care when handling the money invested by their clients. If your broker was negligent in their duty and failed to ensure that your money was being invested in a financially responsible manner, you could be entitled to pursue a lawsuit against them.
Asset Allocation Misconduct
Your financial broker must consider your risk tolerance when allocating your investment between different asset types. Depending on your situation, a sound investment strategy could include splitting your money between a few or all of these asset types:
- Real estate
- Natural resources
- Foreign currency
Typically, younger investors are more tolerant of risk. For this type of investor, investing the bulk of their portfolio into two or three asset classes can yield a favorable long-term return. While doing so can mean short-term losses if an asset type temporarily drops in value, in the long run, the balance of the market will be reasserted, and the investment should rebound.
Meanwhile, older investors need to take a more conservative approach to ensure gains on their investments year-over-year. This means a more widespread allocation of their investment into all asset types. That way, any losses among one class are balanced out by gains in another.
If your financial advisor fails to distribute your money in a way that is in harmony with your risk tolerance, you may be able to pursue legal action.
Breach of Fiduciary Duty
When people invest their money with a financial broker, they are often entrusting them with a significant portion of their life savings. The expectation is that these financial professionals will invest the money wisely to help grow the wealth of their clients.
Due to the fact that clients are giving their brokers substantial power regarding their financial health, the law places a significant fiduciary responsibility on these financial professionals. Brokers have a legal obligation to conduct a thorough investigation into any investment opportunity before recommending it to a client.
If your financial broker fails to perform due diligence and properly evaluate the risks and rewards of an investment, doesn’t create an investment strategy that meets your needs, or omits or misrepresents important information about an investment, you may be able to file a lawsuit against them to recover damages.
Failure to Supervise
Your specific broker isn’t the only one responsible for your financial well-being. The brokerage firm that employs them also has a responsibility to ensure that they are performing their duties in a responsible, ethical, and legal manner.
If a brokerage firm fails to ensure that those it employs are properly handling the money of their clients, the firm could be sued alongside the broker for any financial losses resulting from the mismanagement of funds. An experienced investment fraud lawyer in Texas can help you pursue legal action against all responsible parties.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Knowing How to Identify Investment Fraud
After suffering substantial financial losses regarding the money you entrusted to a financial broker, you may be unsure of whether fraud played a part or not. Many factors can cause a loss in your investment, making proving fraud challenging.
In addition to fraud, mismanaged funds, other illegal activity, natural fluctuations in the market, and unpredictable events can all result in financial losses. Fortunately, the United States Securities and Exchange Commission provides this checklist of investment fraud red flags for investors to review to help determine whether foul play occurred.
If any of these red flags are familiar to your situation, an experienced securities fraud attorney can help you recover compensation.
Why You Should Choose to Work With Our Investment Fraud Legal Firm
Meyer Wilson is one of the top law firms in the country handling investment fraud cases. Our award-winning team of attorneys has more than 75 years of combined experience representing clients in investment fraud cases. Over the years, we have secured $350+ million for our clients. Among the things that set us apart from other investment fraud firms include that we:
- Prepare every case for trial from the very start to ensure we are ready if going to court proves necessary while also having more leverage during settlement negotiations.
- Take cases on a contingency fee basis, meaning that our clients don’t pay us unless we recover compensation from the liable party on their behalf.
- Are selective in the cases we take on to keep our caseload manageable and ensure every one of our clients gets the attention they deserve.
- Use state-of-the-art technology to improve the overall experience for our clients.
Our lawyers are nationwide leaders in investment fraud cases.
Get Started With Help from an Experienced Investment Fraud Attorney in Texas
After suffering financial losses caused by investment fraud, securing the services of an attorney with familiarity with handling these types of cases can be critical. At Meyer Wilson, we have a long history of helping clients win big when taking on investment brokers and brokerage firms.
Contact us today by completing our contact form or giving us a call to schedule your free initial case review.
Recovering Losses Caused by Investment Misconduct.