Competent Counsel for Investment Issues by the Washington, DC Attorney You Trust
Demanding accountability from negligent brokers, advisors and investment firms
Once you have decided to start planning for the future, the nest step you must make is choosing the right investment professional to help you reach your goals. Ideally, your broker or advisor will look carefully at your needs, assess your risk tolerance, and recommend products that will help your portfolio grow. When he or she fails to take the proper precautions, or is negligent in some way, you could lose a substantial amount of your assets.
At The Frankowski Firm, we know that certain investment issues are more likely to crop up than others, especially for new or uninformed investors. Our Washington, DC investment fraud attorneys work hard to recover your assets when an act of fraud or negligence has put your future at risk. We have the experience, skills and resources to handle complex claims in court or in FINRA arbitration, and we serve as your advocate throughout the process.
Common investment issues related to broker misconduct
Though many new investors equate stock broker misconduct with Ponzi schemes or securities fraud, many investment issues arise because of acts of broker negligence: failing to put the investor’s best interest first. A broker or advisor who purchases or recommends products that have little to no impact on an investor’s portfolio, but generate large commissions or kickbacks, is just as guilty of broker fraud as the one who runs off with your money.
The Washington, DC investment fraud attorneys of The Frankowski Firm have had years of experience upholding the rights of investors who have suffered harm because of claims involving:
- Closed-end funds. Closed-end funds offer brokers a chance to generate commissions for themselves. These particular types of funds can be volatile, however, and are often concentrated in one type industry or industry sector. This puts the investor at risk of having a portfolio that is neither divorce nor working for him/her.
- Master Limited Partnerships. MLPs are often low-yield and high risk. Because they are illiquid and unstable, they cannot be sold quickly, and they are rarely suitable investments for anyone who does not have a very high risk tolerance.
- Mutual funds. When you purchase shares in a mutual fund, you are pooling your money with other investors into a fund that may or may not pay off for you. While mutual fund portfolios do tend to be diverse, and offer investors an opportunity to earn interest on dividends, there is always a risk that you could lose everything if that particular fund goes “belly up.”
- Penny stocks. Penny stocks are volatile, high risk and susceptible to “pump and dump” schemes. The lack of oversight makes them easy to manipulate, and their true value difficult to determine.
- Private placement investments. Because private placement investments are non-public offerings, there is little regulatory oversight. This makes them difficult to sell, too.
- Non-Traded Real Estate Investment Trusts (REITs). Non-Traded REITs are often unstable and illiquid, and it can be impossible for investors to obtain accurate information about the properties they are investing in ahead of time. With fees of up to 15% and a lack of transparency about the value of the property, Non-Traded REITs are a dangerous choice for most investors.
- Variable annuity fraud. Variable annuities are often advertised as an excellent opportunity for older investors, because they have a tax-deferred benefits. In truth, variable annuities are often illiquid, have fewer benefits than the standard 401k, and come with excessive fees. Because they can be used to generate commissions, however, brokers may point investors towards these products.
- Unsuitable margin trading. Buying on margin often leads investors to losing more money than they can possible make. Because the brokerage firm can determine which assets in margin account are used to pay itself at whatever time they deem best, investors stand to lose substantial assets.
The Frankowski Firm routinely works with investors in DC and throughout the country on cases stemming from these types of claims. If your broker or advisor failed to put your best interests first, you may be able to make a claim of negligence against the person and/or the firm, and recoup your losses.
Work with an experienced Washington, DC investment fraud attorney
Broker, advisors and investment firms owe their clients a duty of care. When they fail to recommend the correct purchases for your needs, fail to uphold their duties to their clients, or act in a negligent way that causes investors to lose money, The Frankowski Firm is there to hold them accountable. To work with a skilled Washington, DC investment fraud lawyer, or to learn more about our services, please call 888.741.7503, or fill out our contact form.