Losses in investment are common, depending on the volatility of the market. Therefore, not all losses are as a result of fraud on the part of the party entrusted with the investment. Stockbroker fraud on the other hand is a direct and intentional deceit orchestrated by a stockbroker for purposes of self-gain. Therefore when an investor places his own interests ahead of a client’s interests, then that constitutes stockbroker fraud.

If your broker is guilty of any kind of fraudulent activity that might place your investment in danger, or your broker has fraudulently caused you a loss, then you may want to consider talking to a securities lawyer.

Why Should You Talk to a Securities Attorney?

If you are wondering why you should talk to a securities attorney and not just any other attorney, here’s why. A securities litigation lawyer deals with disputes such as shareholder class actions and investigating claims of fraud that affects third parties in private and public business entities. The lawyer has keen knowledge on the subject matter, compared to, let’s say a DUI attorney. You see, law is a fairly broad subject, and no one can master it in its entirety. Most lawyers specialize in particular fields, and by specializing in a few fields, the lawyer has the time and resources to conquer those fields.

So a specialized securities litigation attorney has intimate knowledge on the subject compared to lawyers who specialize in other areas. Hiring such a lawyer guarantees you the best representation possible and increases your chances of getting a settlement.

Now that you understand why you should hire a specialized securities solicitor, call one if your stockbroker does any of the following:

  • Unauthorized Trading

When you contracted your stockbroker, you agreed that they would not perform a transaction on your account without informing you. The only time your broker should act alone is when you explicitly order them to carry out transactions on your behalf. However, if you operate a non-discretionary account, brokers are mandated to inform you of every transaction in detail.

Therefore, if your broker acted on your behalf and failed to make a full disclosure of the transaction prior to or after completing it, then the broker is guilty of unauthorized trading. Right there and then, you should contact a securities solicitor to help you recover the amounts you may have lost as a result of the fraudulent transaction.

  • Advised Investments

Before a broker takes on an investment, he or she is mandated to analyze not only the viability of an investment, but also the client’s current financial status. This is to say that if you recently got disabled and you live on your pension, your broker is supposed to take this into consideration so that they do not over commit your money on high-risk investments. The broker must understand your risk tolerance, investment goals and financial needs before committing on an investment.

Therefore, if your broker pressures you to take an unsuitable investment, then you are most likely a victim of stockbroker fraud. You need to talk to an attorney at the earliest convenience.

You should also contact an attorney if you think your broker has misrepresented an investment opportunity or omitted facts about an investment. Contacting a securities litigation attorney will safeguard your investments, recoup any lost money and keep the stockbroker from committing any more fraud.

By Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to editor.webposts@gmail.com.

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