Making an investment with a brokerage firm can be one of the best ways to save and plan for the future. Unfortunately, this type of investment can also result in significant financial losses if your broker engages in investment fraud or other forms of misconduct. If you suffered financial losses caused by fraud, you could be entitled to compensation.
At Meyer Wilson, we have helped countless investment fraud victims recover compensation from those responsible for their losses. Learn more about what we can do to help you hold your broker and brokerage firm responsible for any losses you incur by reaching out for a free case review with one of our Texas investment fraud attorneys representing individuals who live in Austin.
Different Types of Investment Fraud
Our firm has handled every type of investment fraud case out there over the last 25+ years. Some of the most common types of cases we take on include:
- Broker negligence
- Asset allocation misconduct
- Breach of fiduciary duty
- Unauthorized trading
- Failure to supervise
Broker Negligence
Financial brokers have a duty to ensure they take care when handling a client’s investment. If your broker acted in a negligent manner, failing to ensure that they were investing your money responsibly, an experienced securities fraud lawyer can help you recover money for your losses through a civil lawsuit.
Asset Allocation Misconduct
When distributing your investment among different asset types, your financial advisor needs to consider your level of risk tolerance. One of the primary factors that determines the level of risk an investor can safely take on is their age.
Those more tolerant of risk may be better suited with their investment focused in only a few asset types, while more risk-averse individuals should have their money spread among more asset classes, such as:
- Stocks
- Bonds
- Natural resources
- Real estate
- Foreign currency
- Cash
In many cases, younger investors may have a higher tolerance for risk. When distributing the money invested by these individuals, an investment broker behaving responsibly may choose to focus their investment on a more limited number of asset types. Although this can mean short-term losses sometimes, with the rebalancing of the market over time, it can result in long-term gains.
Senior investors tend to need a far more conservative investment strategy that ensures gains year over year and protects against large losses. For these investors, the distribution of their investment across a wide range of asset classes is typically the best approach.
If your financial broker fails to take your risk tolerance into account when choosing asset allocation for your investment, you may have the grounds to file a lawsuit.
Breach of Fiduciary Duty
When an investor puts their money in the hands of a financial broker, they do so with the assumption that the broker will responsibly invest their money to grow their savings.
Because the amount of money entrusted to these financial investors often makes up the bulk of their clients’ savings and significant losses can result in financial ruin, the fiduciary responsibility the law places on many brokers and brokerage firms is significant.
Your broker is legally bound to conduct a thorough review of any investment opportunity before presenting it to a client. This includes performing due diligence, ensuring the client has complete and accurate information, assessing the risks, and making sure the investment aligns with the client’s investment strategy.
Unauthorized Trading
Investment brokers must obtain client authorization before making any trades with their money. Sometimes, this authorization comes on a trade-by-trade basis, while other times, blanket authorization for trades, within certain parameters, is authorized in the signed contract between investor and broker.
However, if a broker makes trades outside of the limitations permitted by the contract without contacting the investor for authorization, they could be held financially liable for any losses that occur as a result.
Failure to Supervise
Your financial broker is not the only party with a legal obligation to ensure your money is being invested properly. The brokerage firm they work for has a duty to supervise the brokers that work for them to ensure they are investing their clients’ money responsibly, ethically, and legally.
If a brokerage firm fails to properly supervise its brokers, it can also be held liable for any losses caused by investment fraud. An experienced investment fraud attorney in Austin, TX, can help you pursue damages against all parties that owe you a financial responsibility.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Determining If You Were the Victim of Investment Fraud
When you sustain substantial financial losses after entrusting your money to a financial firm, you will likely be wondering if fraud played a role in causing you to lose your investment. While fraud is one of the main causes of investment loss, other factors can also play a role, like natural fluctuations in the market, unforeseeable events, and other illegal activity.
If you suffered a loss that you believe may have been caused by fraud, review this checklist of investment fraud red flags from the Securities and Exchange Commission (SEC). If anything here sounds familiar to your situation, reach out to an experienced securities fraud attorney today.
What Sets Us Apart from Other Investment Fraud Legal Firms
Meyer Wilson is one of the leading investment fraud law firms in the country. Our award-winning team has over 75 years of combined experience, and we have managed to secure over $350 million on behalf of our clients. Some of the reasons our firm outperforms the competition include:
- The fact that we keep our caseload manageable so that all of our clients receive the personalized attention needed to recover the compensation they deserve
- Our process of preparing each case as though it is going to court from day one so that we are prepared if a trial is necessary and have leverage during settlement negotiations
- Our use of state-of-the-art technology which helps us provide our clients with the best possible experience while increasing their odds of recovering damages
- The fact that we charge on a contingency fee basis, meaning we don’t collect payment for our services unless we get you money for your losses
Our lawyers are nationwide leaders in investment fraud cases.
Get Started With an Experienced Investment Fraud Attorney Helping Individuals in Austin Today
After suffering financial losses caused by investment fraud, hiring an experienced lawyer will greatly improve your chances of winning your case and getting the money you need. At Meyer Wilson, our team of experienced investment fraud attorneys is ready and waiting to help.
Contact us today by giving us a call or completing our online contact form today and schedule your free case review with a member of our legal team.
Recovering Losses Caused by Investment Misconduct.