Seasoned Lawyers Advise Houston Investors on Broker Fraud and Negligence Issues
Providing strong advocacy when Texas brokers commit securities fraud or negligence
Registered investment advisors, brokers and broker-dealers are licensed professionals owe their clients a high duty of care. When they fail in that duty, investors have options for pursuing damages, and to recoup their losses. The Frankowski Firm has a solid record of successfully handling securities fraud and negligence cases on behalf of clients in Houston and nationwide. Our skilled securities fraud attorneys are here to protect the interests of our clients and to fight for their right to recover investment losses that were caused by broker mismanagement or fraud.
Examples of broker negligence and fraud
Securities brokers (or broker-dealers) are bound by a duty of good faith and fair dealing with their clients. Failure to uphold those higher standards of conduct may constitute negligence. A negligence claim regarding the malpractice of a securities broker involves several legal elements including:
- A duty of care owed by the broker to their client.
- An action or the failure to act that breaches that duty.
- Damages caused by the breach of duty.
Negligence is a broad cause of action which can encompass many of untoward activities in which a broker might engage that contribute to the client’s financial losses. Securities fraud includes the element of intent to deceive, and can be more challenging to prove.
Problematic products for investors
It is important to understand that certain products are riskier than others. For some investors, a greater risk will lead to a greater reward. For others, trading these products can lead to devastating investment losses. Some of those products include:
- Mutual funds
- Closed end funds (CEF)
- Private placement investments
- Master limited Partnership (MLP)
- Non-traded Real estate investment trusts (REITs)
- Buying on margin
- Variable annuity fraud
- Penny stocks
At The Frankowski Firm, we represent investors who have been defrauded, or who have been victims of broker negligence, throughout Texas. You can rely on us to protect you and your future when your broker or investment firm failed to protect your best interests.
Investor options for recovering for investment losses caused by broker fraud and negligence
Investors do have rights when broker negligence has led to financial losses. In some cases, you may pursue damages in court, litigating your case the way you would any civil claim. Included in many of the contracts investors sign before they work with a financial professional, however, is a mandatory arbitration clause. This means that in signing the contract, the customer agrees not to sue the brokerage if there is a dispute, rather they agree to having their fraud or negligence claim settled using the FINRA arbitration process.
Whether you proceed arbitration or litigation, you will need an attorney who is skilled and capable in handling the complexities of securities law. You will be going up against the aggressive counsel for the brokerage house, so it is vital that you obtain representation that can not only hold their own, but fight to win against the tenacious opposition.
Schedule a consultation with an investment negligence and fraud attorney today
The securities fraud and negligence attorneys at The Frankowski Firm know when stockbrokers misrepresent material facts and when they do not put the investor first. Our legal team works with financial experts to prove either negligence or fraud caused the investor actual and quantifiable harm. You may contact our office at 888-741-7503 or complete our contact form now if you sustained losses because of a fraudulent or negligent Houston stockbroker.