When you lose your hard-earned money on an investment recommended by a brokerage firm, it is easy to blame yourself. You start second-guessing the decision you made to reply on the advice and recommendation of your broker and wish that you could turn back the clock. While stockbrokers and brokerage firms are not guarantors of market performance, there are some scenarios where your financial loss may have been caused by your broker’s misconduct.
Before delving into situations that could indicate broker misconduct, you do need to understand that sometimes losses happen. People regularly make money and lose money on such investments as stocks, bonds, mutual funds, commodities and insurance products. What you need to find out is if misconduct of your broker played a role in your losses.
Here are some situations that could indicate that your broker was at fault:
- Your broker purchased an investment without your permission. Brokers are not supposed to buy anything for your investment account without asking you first (unless they have a signed power of attorney). Your prior consent is needed. If you didn’t authorize your broker to buy or sell the investments in your account, there could be a problem.
- Your broker didn’t follow your instructions. Your broker is required to follow your orders. If he or she fails to do so and you lose money, it could be your broker’s fault.
- Your broker didn’t disclose pertinent information. In most cases, brokers have a fiduciary duty to investors to supply complete information on recommended investments. In a situation where this does not occur and you lose money, your broker could be liable.
- Your broker misled you. If your broker provided you with inaccurate information, such as telling you that an investment had a good rating and was safe, when it turns out it wasn’t, your broker could be to blame for your financial loss.
The preceding list is just a sample of the many forms of broker misconduct. If you have lost money and believe that your broker could be responsible, you need to talk with an experienced broker misconduct lawyer who can review your case and provide legal guidance. The attorneys at the law firm of Meyer Wilson are licensed in Ohio. We represent investors nationwide in securities arbitration and litigation claims. Call us or fill out our contact form for your free case evaluation.
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 .