Investing your money with a brokerage firm can help secure your financial future. However, if your broker engages in investment fraud, you could end up losing your investment and facing severe financial hardship. If you sustained financial losses caused by investment fraud, you may be entitled to pursue compensation.
At Meyer Wilson, we have been helping investment fraud victims recover the compensation they need and deserve for more than 25 years. Our team will work diligently to ensure a favorable outcome to your case. Reach out to us today to schedule a free case review with one of our Texas investment fraud lawyers representing clients in Dallas, TX.
Investment Fraud Can Take Many Forms
At our firm, we have handled a wide range of investment fraud cases over the past 25+ years, including cases involving:
- Broker negligence
- Unauthorized trading
- Asset allocation misconduct
- Breach of fiduciary duty
- Failure to supervise
Broker Negligence
When you hire an investment broker to handle your money, they have a duty to ensure that they behave in a responsible manner. If your broker is negligent and fails to ensure that your money is being invested properly, an experienced securities fraud attorney can help you pursue compensation from the responsible party.
Unauthorized Trading
When making trades with a client’s money, an investment broker must first obtain authorization. A client can either authorize trades directly, on a case-by-case basis or permit their broker to make trades that fall within certain parameters without directly consulting the client when they sign their investment contract.
If a broker trades a client’s money in a manner that falls outside of the terms of their contract without obtaining authorization, they could be held financially responsible for any resulting losses.
Asset Allocation Misconduct
When your financial advisor is distributing your investment among different asset classes, they must take your risk tolerance level into account. One of the main considerations in determining the risk tolerance of an investor is age.
If you truly have a higher risk tolerance, it may be safe to bundle your investment into a limited number of asset types. Meanwhile, more risk-averse investors should have their investment split among a wide range of asset classes, and some examples include:
- Foreign currency
- Real estate
- Stocks
- Bonds
- Cash
Typically, younger investors have a higher risk tolerance than seniors investors. When allocating the money invested by a younger client, an investment broker may choose to group their money into a limited number of different asset types. This can make the investor susceptible to short-term losses but will typically yield positive results in the long term.
Older investors, on the other hand, tend to be more risk-averse and need a more conservative investment strategy that helps ensure less overall volatilty. This will likely mean that they will be best suited to having their money divided into a wide range of asset classes.
If your financial broker doesn’t consider your risk tolerance level when allocating your funds among different asset classes, they could be opening themselves up to a lawsuit.
Breach of Fiduciary Duty
When an investor entrusts their money to a financial broker, they are doing so with the assumption that the broker will act in a responsible manner to help grow their savings.
Because the amount being invested often accounts for a substantial portion of the client’s savings and substantial losses can mean financial ruin for the investor, the law places a high level of fiduciary responsibility upon many financial brokers.
Your broker has a legal obligation to conduct an extensive review of any investment opportunity they present to a client. They must perform due diligence, assess the risks, provide their client with complete and accurate information, and ensure the investment is in line with the investment strategy for the client.
Failure to Supervise
Your investment broker is not the only party that can be held liable for losses you suffer as a result of investment fraud. The brokerage firm that employs your broker is legally obligated to provide proper supervision of all their employees to ensure they are behaving in a responsible, ethical, and legal manner.
If the brokerage firm fails to uphold its duty, it can be held liable for any losses incurred by an investor. By working with an experienced investment fraud attorney representing clients in Dallas, TX, you can ensure that all responsible parties are held liable for the losses you sustained.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
How We Stand Out from Other Investment Fraud Law Firms
Meyer Wilson is among the top investment fraud legal firms in the nation. Our award-winning team has used our more than 75 years of combined experience to recover over $350 million for our clients. Some of the things that set us apart from the competition include:
- Our use of state-of-the-art technology which helps improve the overall experience for our clients while also increasing our chances of success
- The fact that we prepare every case for trial from day one, ensuring we are prepared if a courtroom battle proves necessary while also giving us leverage during negotiations
- Our use of a contingency fee payment structure, which makes it so that our clients do not have to pay for our services unless they recover compensation
- The fact that we keep a manageable caseload so that we can give every client the attention they need to get the money they deserve
Identifying Investment Fraud
When you suffer significant losses to your investment, you may be unclear of the cause. In addition to investment fraud, mismanagement of funds, other illegal activity, natural market fluctuations, and unforeseeable events can all result in financial losses.
If you suspect that fraud may have played a factor, browse this checklist of investment fraud red flags from the Securities and Exchange Commission (SEC). If you see things that look familiar to your case, it may be time to reach out to an experienced securities fraud lawyer for help.
Our lawyers are nationwide leaders in investment fraud cases.
Get Help Today from an Experienced Investment Fraud Attorney Representing Clients in Dallas
After sustaining financial losses due to investment fraud, one of the best ways to improve your odds of getting the money you need is by hiring an attorney familiar with cases similar to your own. At Meyer Wilson, our team of investment fraud lawyers knows the challenges you are up against.
Contact us today by completing our online contact form or giving us a call and schedule your free initial case review.
Recovering Losses Caused by Investment Misconduct.