One of the best ways to grow your savings for the future is by investing your money with a brokerage firm. However, you should thoroughly research the firm in which you are investing, as investment fraud is a significant problem in the industry that can lead to substantial financial losses for those who are victimized.
At Meyer Wilson, we can help identify investment fraud when it occurs and assist victims in pursuing compensation from those responsible for their losses. We have an experienced team of investment fraud lawyers serving Texas, who will work restlessly to ensure you recover damages. Get started today with a free consultation.
Different Types of Investment Misconduct Cases We Handle
Over the past 25+ years, our team of investment fraud attorneys has helped clients facing every type of investment misconduct imaginable. Some of the cases we see most frequently include:
- Broker negligence
- Failure to supervise
- Unauthorized trading
- Asset allocation misconduct
- Breach of fiduciary duty
Broker Negligence
When an investment broker is handling the money of a client, they must act responsibly to ensure their client’s money is wisely invested. If your broker behaves in a negligent manner that results in significant financial losses, an experienced securities fraud lawyer can help you file a lawsuit to recover damages.
Failure to Supervise
Individual brokers are not the only ones that can be held accountable for any investment fraud they commit. The brokerage firms that employ these individuals have a duty to ensure they are providing adequate supervision. These firms must make sure that all of their clients are in compliance with the applicable laws and regulations.
If an investment firm fails to uphold its duty to adequately monitor the activities of its employees to ensure they are behaving in a legal, ethical, and responsible manner, an experienced investment fraud attorney in Houston, TX, can assist you in your pursuit of damages from both the broker and the investment firm.
Unauthorized Trading
Brokers are required to obtain authorization from their clients before making any trades with their investments. Authorization can be made in a case-by-case manner or outlined in the terms of an investment contract between the investor and broker.
If a broker makes trades with the assets of a client that fall outside their authority, they can be held responsible for any resulting losses.
Asset Allocation Misconduct
When allocating a client’s money to different asset types, a financial advisor must consider their tolerance level for risk. Some of the asset classes into which a broker may choose to divide the money of a client include:
- Real estate
- Stocks
- Foreign currency
- Cash
- Natural resources
- Bonds
Most of the time, younger investors can afford to take on a higher level of risk than is acceptable for older investors. A young investor has the time to wait out any dips in an asset type and can accept down years that result in losses, knowing that in the long run, the market will rebalance, and they will recover their money.
However, older investors do not have the luxury of time. They need to see positive returns on their investment year-over-year. So, while the better strategy for a younger investor may be to pool their money into only two or three different asset classes, it is generally best to invest the money of older investors among a wide range of asset types.
If your broker allocates your money among asset types in a manner that is not aligned with your level of risk tolerance, you can pursue damages for any resulting losses.
Breach of Fiduciary Duty
Investment advisors have a high level of fiduciary responsibility based on the fact that their clients often entrust them with the bulk of their savings, which means that mismanagement of their investments can lead to financial ruin.
The law requires these advisors to conduct a thorough review of any investment opportunities they plan to suggest to their clients. Included in this review is the adviser’s need to perform due diligence, weigh the potential risks and rewards, provide the client with detailed and accurate information, and ensure the investment aligns with the client’s personal investment strategy.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Steps to Identifying Investment Fraud
When an investor loses money after putting their savings in the hands of an investment broker, they will likely be unsure of exactly what occurred. In addition to investment fraud, other illegal activity, uncontrollable events, and natural fluctuations in the market can all be potential causes of financial losses.
To help determine whether investment fraud played a role in your losses, you can consult this checklist of investment fraud red flags created by the Securities and Exchange Commission (SEC). If anything on this list sounds familiar to your situation, you might want to consider reaching out to an experienced securities fraud attorney.
Why Choose Meyer Wilson Over the Competition
The award-winning team at our firm has helped to make us one of the top investment misconduct law firms in the United States. We have used our 75+ years of combined experience to help secure over $350 million on behalf of our clients. Some of the things that help us stand above our competitors include:
- Our manageable caseload, allowing us to provide each of our clients with the personalized attention they need and deserve
- Our contingency fee pricing structure, which ensures that our clients don’t have to pay for legal services unless we recover damages on their behalf
- Our use of state-of-the-art technology, which increases our success rate while ensuring the best possible client experience
- The preparation we put into each case from day one to ensure we are ready to take every case to court if necessary while increasing our leverage during negotiations
Our lawyers are nationwide leaders in investment fraud cases.
Reach Out to an Experienced Houston Investment Fraud Attorney Today
After suffering losses caused by investment fraud, the best thing you can do to improve your chances of recovering the compensation you deserve is to secure the services of an experienced investment fraud lawyer. At Meyer Wilson, we have a proven track record of winning big for our clients.
Contact us through this website or over the phone to schedule your free initial consultation.
Recovering Losses Caused by Investment Misconduct.