Attorneys Helping Clients Recover Investment Losses after Broker Negligence and Fraud in Houston
Fighting for the rights of individual and institutional investors in Texas and throughout the country
Investment losses do not just occur with investors who are new to investing; even seasoned investors can fall victim to mismanagement, misconduct, negligence or even fraud on the part of a broker or brokerage firm. If you have suffered significant, unexplainable losses that make you suspect your broker misrepresented your investments, or placed you in investments that were not suitable for you, The Frankowski firm is available for consultation to discuss your potential case.
At The Frankowski Firm, our team of securities fraud lawyers has, unfortunately, seen investors who have suffered crushing financial losses due to the careless mishandling of their accounts by Houston-area brokerage firms and brokers. We hold these professionals responsible when they engage in conduct that fails to uphold their duty to operate in good faith, and puts their clients’ hard-earned money in jeopardy.
Common claims of broker negligence and fraud
Sometimes stockbrokers lose sight of their duty to their clients and they focus instead on enriching themselves. Other times, negligence is to blame for a broker’s irresponsible behavior. Here are some examples of what might occur when a financial advisor or broker’s actions, or failure to act, fall below the duty of care that they owe their clients:
- Causes of action concerning the suitability of investments recommended to a client are fairly common. Every customer has specific requirements that make investments suitable for them based on their age, their experience as an investor, their risk tolerance, liquidity needs and several other factors. Suitability also speaks to the diversification of a client’s portfolio in the various investment vehicles and sectors of the economy.
- Failure to supervise. Brokerage firms are required under both SEC and FINRA to supervise the activities of their brokers. They are required to contact you if they should become aware of red-flags regarding your accounts. If they see some potentially risky transactions going on, they may check in with you to make sure that you are on board with your broker’s trading style and strategy. If you should suffer losses because of your broker’s negligence and you never heard from the brokerage, their failure to supervise the broker may be actionable.
- Bond fraud and misconduct. Common forms of bond fraud can include insider trading, wire fraud and insider trading, which if a broker is convicted, may result in criminal charges and jail time.
- Excessive purchase and sale volume in your portfolio which serves only to generate commissions for the broker is called “churning.” Churning is a practice that is prohibited by FINRA.
- Selling away. When a broker attempts to sell you securities not held or offered by the brokerage firm, this is called “selling away,” and it may be a violation of securities regulations.
- Overconcentration of assets. This is a form of unsuitability that occurs when your broker overconcentrates a large portion of your portfolio in a single security or sector of the economy.
- Misrepresentation or omission. Brokers cannot recommend an investment based on false or misleading information, make misleading statements, or omit key information about a product.
How might you recover from investment losses when your securities broker was fraudulent or negligent?
Brokers and brokerage firms have a duty to operate in good faith, and they must uphold a high standard of care when it comes to serving their clients and customers. When they fail to live up to that standard, they can be sued for negligence or fraud, and in some cases, additional state and federal criminal charges may also be involved. You have a right to recover your investment losses that occured because of broker misconduct or malpractice. A securities fraud attorney from our firm can help make sure that your rights are protected and that the responsible parties are held accountable.
You can get help for investment losses in Houston by speaking with an experienced financial securities attorney
The securities and investment negligence attorneys at The Frankowski Firm are here to be aggressive advocates when you have suffered inexplicable investment losses in Houston. We pursue claims on behalf of our clients relentlessly until we recover damages for them. You can speak with a financial investment lawyer now by calling us at 888.741.7503 or compete our contact form.