When planning for your financial future, one of the best things you can do is invest your money with an investment firm. Unfortunately, doing so can leave you exposed to investment fraud if the broker you choose is not on the level. Conducting thorough research into a brokerage firm before entrusting them with your money is one of the best ways to protect yourself.
If you still end up losing money due to investment fraud, the team at Meyer Wilson can help. Our investment fraud lawyers in Virginia are ready and waiting to help you pursue compensation from those liable for your losses. Schedule a free case review by giving us a call or completing the contact form on this website today.
The Many Types of Investment Misconduct
The term investment fraud is a catch-all phrase used to describe a wide range of misconduct by investment brokers and financial advisors. In the 25+ years we have been helping the victims of investment fraud recover compensation, we have handled every type of investment fraud case imaginable.
Some of the cases in which we most commonly represent investment fraud victims include:
- Broker negligence
- Unauthorized trading
- Asset allocation misconduct
- Failure to supervise
- Breach of fiduciary duty
Investment brokers have a duty to ensure they are handling the money of their clients in a responsible manner that will likely lead to the growth of their investment. If a broker is negligent in their duty and you suffer significant financial losses as a result, an experienced securities fraud lawyer can help you take legal action.
A broker can only make trades with the money of a client if they first obtain authorization. This authorization can be made in two primary ways. Either an investor can approve each trade proposal directly as their broker presents them, or they can authorize a range of trades that meet certain criteria when they sign an investment agreement with their broker.
If a financial broker conducts trades they don’t have the authority to make, you can hold them financially responsible for any losses you suffer as a result.
Asset Allocation Misconduct
When dividing your investment among different asset classes, the most important thing for your financial advisor to consider is your level of risk tolerance. The different asset types into which your investment may be divided include:
- Foreign currency
- Real estate
- Natural resources
Typically, younger investors are able to take on more risk than older investors. That’s because these investors can wait out any short-term losses in the pursuit of long-term gains. When allocating money among different asset types for young investors, the best strategy may be to pool their money into two or three asset classes.
In contrast, older investors generally need a more conservative approach. For these investors, spreading their money across a wide range of asset classes will increase stability and raise their odds of seeing positive returns year-over-year.
If your broker invests your money among different asset types in a manner that is in contrast with your risk tolerance, they can be held financially responsible for any resulting losses you incur.
Failure to Supervise
Your broker is not the only party that can be held accountable for any losses you suffer due to investment fraud. Brokerage firms are legally obligated to ensure their brokers are complying with all laws and regulations by supervising their activity.
If a broker behaves in an unethical, irresponsible, or illegal manner while handling your investment and the firm they work for fails to take action, both parties can be liable for your losses. An experienced investment fraud attorney in Chesapeake, VA, can help you recover damages from both the broker and the firm.
Breach of Fiduciary Duty
The law holds investment advisors to a high standard of fiduciary responsibility. These advisors often handle the bulk of their clients’ savings, putting them in a position where mismanagement of funds can result in financial ruin for investors.
Before a broker proposes an investment opportunity to a client, they must first perform due diligence, including conducting a thorough review of the details of the investment, weighing the risks versus the rewards, providing their client with detailed and accurate information, and ensuring that the investment matches the client’s investment objectives.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Assessing Whether You Were the Victim of Investment Fraud
Following losses to the money you have invested with a brokerage firm, you will likely be curious about the cause. Many factors can play a part in your losses, including investment fraud, other illegal activity, the natural fluctuations of the stock market, and impactful yet unpredictable events.
If you have suffered losses to your investment, you may want to peruse this checklist of investment fraud red flags from the Securities and Exchange Commission (SEC). If anything on this list sounds familiar to your situation, it might be time to reach out to an experienced securities fraud attorney for help.
What Sets Meyer Wilson Apart from Other Investment Fraud Firms
Using our 75+ years of combined experience, the award-winning team at our firm has helped turn us into one of the leading investment fraud law firms in the US. Over the decades, we have won countless cases for our clients, resulting in over $350 million in damages. Some of the things that set us apart from our competitors include:
- The fact that we employ state-of-the-art technology to help improve our odds of success in your case while improving the experience for our clients
- Our contingency fee payment system, which ensures that our clients will only have to pay for legal services if we recover compensation on their behalf
- The fact that we keep our caseload small so that we can give each client and case the necessary personalized attention
- Our preparation process, which has us preparing each case for court from day one, ensuring that we are ready to go to trial if necessary while also building leverage during settlement negotiations
Our lawyers are nationwide leaders in investment fraud cases.
Get Started on Your Case With Help from an Experienced Chesapeake Investment Fraud Attorney
After losing money because of investment fraud committed by your broker, the best way to improve your odds of recovering favorable compensation is by hiring an experienced lawyer. At Meyer Wilson, our team of investment fraud attorneys has helped countless fraud victims win big.
Contact us through our website or by giving us a call and schedule your free, no-obligation case review today.
Recovering Losses Caused by Investment Misconduct.