If you have suffered a loss in investments or savings due to investment fraud or broker misconduct, or been sold an insurance annuity that is not appropriate, you’re not alone. Every year, many people of all socioeconomic backgrounds fall victim to securities fraud. The process of recovering damages brought on by this misconduct can be very complicated. Joseph H. Spiegel, PLLC has over three decades of experience handling cases involving securities fraud and broker negligence or misconduct, and we will work diligently to identify the responsible and collectable parties.
It’s not uncommon for people to lose money on stock market investments due to corrupt or negligent broker/dealers. Sometimes, insurance agents sell annuities that are unsuitable for the investor. The rules governing these can be extremely complex. Consequently, many individuals rely entirely on information and advice from their brokers or insurance agents. Often, unjustified losses result from your investment. Joseph H. Spiegel, PLLC has a breadth of experience serving clients who have fallen victim to investment fraud and abuse, such as Ponzi schemes, “churning” and excessive trading, annuity switching, unauthorized trader, over-concentration, breach of fiduciary duty, lack of supervision, forgery, unsuitability, stock manipulation, and other forms of fraud and broker misconduct.
If you feel that you have been a victim of any type of securities fraud or other misconduct, it is important to speak with us as soon as possible. Call (734) 761-8475.
Our decades of experience working with individual investors in their recovery offer a proven partner for those seeking help with a wide range of claims involving broker misconduct.
Types Of Claims in the State of Michigan
This is the most common type of claim. A broker is required to have reasonable grounds for believing that a recommendation to purchase or sell an investment is suitable for a customer in light of the customer’s other investments, financial situation, needs and objectives. The “Know Your Customer Rule” requires a broker to ask about a customer’s income, expenses, financial goals, financial objectives, and other information prior to making recommendations to purchase, sell or exchange securities.
A broker is required to obtain permission from an investor prior to executing any orders, unless written permission has been given from the investor to make transactions on his or her behalf without approval. Even in cases where written authorization or power of attorney has been granted, the broker can’t misuse or exceed that authority. Unauthorized trading cases are generally handled in mandatory securities arbitration before the Financial Industry Regulatory Authority (FINRA).
Excessive trading in order to generate commissions is known as “churning.” Both the broker and the brokerage firm may be held liable for any losses that are a result of excessive trading. Churning violates the FINRA principle of “quantitative suitability” detailed in § 2111.05(c). To establish excessive activity, we would consider evidence such as turnover rate, cost equity ratio, and other factors.
Failure to Execute
If you requested an order to be placed on your behalf and a broker failed to execute that order in a timely fashion, you may be eligible for compensation to recover any losses that resulted. These situations can be complex. Working with an experienced investment fraud attorney is critical to success.
Breach of Fiduciary Duty
Investment advisors are legally required to place the interests of their clients before the interests of themselves or their firms. This is known as “fiduciary duty.” This doesn’t apply to all client relationships, and fiduciary duty must be determined to exist based on facts and circumstance.
Securities fraud can range from misleading clients to write checks made out to the brokers themselves, to pushing toxic assets onto investors. It covers a wide range of claims where a broker violated their legal duties.
Over-concentration is the failure to adequately diversify an investment portfolio, which can create an excessive risk of loss. If your broker failed to diversify your portfolio, resulting in a decline in your portfolio’s value, you may be entitled to recovery.
These are just a few examples of investment fraud and misconduct. We can help you to identify and evaluate any type of claim.