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One of the Worst Things You Can Do When You Suspect Investment Fraud

For whatever reason, you have reached the point where you suspect your advisor defrauded you. It could be that he made a transaction without your permission or recommended unsuitable investments. No matter what has led you to this place, it is imperative that you understand that there are certain actions you need to avoid.

What you should not do when you believe you are the victim of advisor misconduct...

  • Send your advisor a letter. It may seem logical that you would simply write your broker or brokerage firm a letter stating your concerns, but that is one of the worst actions you can take. A written letter could actually hurt your case, instead of helping it. The defense lawyers for the brokerage firm might use your letter during the arbitration hearing to discredit your claim. If you are considering writing a complaint letter, we strongly urge you to contact a broker fraud attorney first. This warning also applies to emails.
  • Work with your advisor after you suspect something is wrong. If you continue to work with your advisor, it can weaken your claim. Once you have reason to believe your advisor caused you to lose money, stop working with him or her and contact a lawyer.
  • Agree to a recorded conversation with your advisor. Your advisor will be prepped on what he or she should say during the call. If you agree to a recorded discussion, you could make a statement that negatively affects your case.

What you should do when you suspect fraud...

Contact a securities arbitration attorney. Investment misconduct cases are typically handled in mandatory securities arbitration. The brokerage firm will employ the help of sophisticated defense lawyers who will dispute your claim. It is important to hire your own lawyer.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

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