When preparing for the future, investing your money with a brokerage firm is one of the best ways to ensure your financial health. However, investment fraud is a serious problem in the financial sector that can turn gains into losses. The first line of defense is to thoroughly research an investment firm before trusting it with your money.
The second line of defense comes after investment fraud has already occurred in the form of an experienced attorney. At Meyer Wilson, our team of investment fraud lawyers serving Texas, has a history of helping fraud victims recover the compensation they need and deserve. Get in touch today to schedule a free case review with a member of our legal team.
Representing Clients in a Variety of Investment Fraud Cases
At our firm, we have represented clients facing every type of investment fraud imaginable over the last 25+ years. Some of the cases we most commonly see include:
- Unauthorized trading
- Broker negligence
- Failure to supervise
- Asset allocation misconduct
- Breach of fiduciary duty
In order to make trades with a client’s money, an investment broker must first obtain authorization. A client can give them the authority to make a trade in one of two ways.
The first way is for a client to directly authorize a specific trade opportunity presented to them by their broker. The second way is for a client to approve a variety of trades that meet certain criteria when signing their investment contract with the brokerage firm.
If your broker makes any trades they have not received prior authorization to make, they can be held liable for any resulting financial losses.
Financial brokers are legally required to ensure they handle the money of their clients with care and make decisions that put them in the best position to grow their investment. If your broker fails to act professionally, an experienced securities fraud attorney can help you pursue legal action for negligence.
Failure to Supervise
When an investor loses money after working with a broker, the broker is not the only party liable for the losses. Brokerage firms have a legal duty to ensure the brokers they employ are in compliance with all applicable laws and regulations. They must provide adequate supervision of their employee’s conduct to minimize the risk for their clients.
If your broker fails to act in an ethical, responsible, and legal manner while dealing with your money, an investment fraud attorney in San Antonio, TX, can help you take legal action against both the broker and the brokerage firm.
Asset Allocation Misconduct
Your financial advisor must take your level of risk tolerance into account when determining how to invest your money among different asset classes. The asset types into which your investment can be divided include:
- Natural resources
- Foreign currency
- Real estate
In most cases, older investors can take on less risk than younger investors. These investors need to see positive gains on a yearly basis. Because of this, investing their money across a wide range of asset types is likely going to be the best approach as it creates more stability and makes them less vulnerable to fluctuations in the market.
Meanwhile, younger investors can afford to ride the waves of the market and absorb losses in the short term as long as their money grows in the long term. For these investors, dividing their money into two or three asset types with higher growth potential may be the best way to go.
If your broker fails to consider your risk-tolerance level and invests your money among asset classes in a manner that is counter to your financial goals, they can be held liable for any resulting financial losses.
Breach of Fiduciary Duty
Under the law, investment advisors are held to a high level of fiduciary responsibility. Because these financial professionals often handle the bulk of their clients’ savings, mismanagement of this money can plunge their clients into financial ruin.
Before an advisor presents their client with an investment opportunity, they must first perform due diligence, including reviewing the details of the investment thoroughly, assessing the risks and rewards, presenting full and accurate information to their client, and checking that the investment is aligned with the financial goals and strategies of their client.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
What Makes Meyer Wilson One of the Top Investment Fraud Firms in the Country?
The award-winning team at our firm has used their 75+ years of combined experience to win more than $350 million for our clients. There are many things about the way we do business that help set us apart from the competition, including:
- Charging our clients on a contingency fee basis, meaning they only have to pay for our services if we win them money
- Our use of state-of-the-art technology, which increases our chances of success in the cases we handle while making the experience better for our clients
- The manner in which we prepare every case for trial from the start, giving us better leverage during settlement negotiations and ensuring that we are ready if a trial proves necessary
- The fact that we maintain a manageable caseload, which allows us to provide the care and attention that each of our clients needs
Identifying Investment Fraud
After losing the money you invested with a broker, you will likely be wondering about what caused the loss. Of course, investment fraud could be to blame, but other illegal activity, typical market fluctuations, and global events can also play a role.
If you lost a significant portion of your investment, you should review this checklist of investment fraud red flags compiled by the Securities and Exchange Commission (SEC). If you see anything on this list that matches your current situation, you should reach out to an experienced securities fraud lawyer for help.
Our lawyers are nationwide leaders in investment fraud cases.
Get Help From an Experienced San Antonio Investment Fraud Attorney Today
Following significant financial losses caused by investment fraud, the best way to boost your chances of recovering the money you need is by hiring legal representation. At Meyer Wilson, our team of investment fraud lawyers has a proven history of securing big wins for our clients.
Contact us today by phone or through our website and schedule your free, no-obligation case evaluation.
Recovering Losses Caused by Investment Misconduct.