Atlanta Broker Fraud Lawyers Expose and Prosecute Deception
Protecting Georgia investors from deceptive practices
Investment firms and brokers can promise or guarantee a specific rate of return within a time frame for every client. However, their promises are sometimes too good to be true. If you are enticed with a “super-secret strategy,” it is more likely that you are being recruited to some type broker fraud.
Our Atlanta broker fraud lawyers have seen many clients lose money from these manipulative and underhanded practices, and we are dedicated to helping you obtain justice. The Frankowski Firm helps investors to recognize, address, and rebound from broker fraud or negligence. Our attorneys work to achieve financial recovery for our clients.
How do I know that broker fraud has occurred?
The vast majority of brokers and investment professionals work diligently to see that their clients have all the necessary information to make informed decisions. However, when our Georgia stockbroker fraud lawyers see broker misconduct or fraud, it usually takes one of the following forms.
- Failure to supervise. Investment firms are responsible for ensuring that their brokers adhere to FINRA as well as state and local securities trade regulations. Firms can be held accountable when their brokers engage in misconduct.
- Failure to diversify. The true strength of any investment portfolio lies in its diversity of types and industries of investments. Overconcentration of one type of investment, or in one industry (for example) can have devastating effects on a client’s portfolio.
- Suitability claims. How should a broker assess whether a particular investment is right for a certain client? He or she uses a measure called suitability, based on the client’s stated interest in risks, investment objectives and financial situation. When these criteria are violated, the broker may be facing a suitability claim.
- Ponzi schemes. Aside from their illegality, Ponzi schemes are exemplified by their lack of true profits. Instead, income is solely derived from new conscriptions. When there are no more individuals looking to buy in, it collapses, leaving all but the originators poorer for the venture.
- Breach of fiduciary duty. Financial advisors receive commissions for selling certain investments. They are obligated, however, to place the client’s interests ahead of their own, and recommend suitable investments. The advisor’s gain cannot influence the way they counsel and act on behalf of investors.
- Churning. Churning of an investment account does not create any benefit to the investor. Instead, the investment professional merely buys and sells for the purposes of collecting a commission.
- Selling away. To sell a security that is not held by the firm a broker is employed by is a violation of SEC regulations. To obtain a commission, brokers may attempt to circumvent their firm’s regulations and “sell away” inappropriate securities. This is often related to a firm or manager’s failure to supervise.
If you believe that you are the victim to one of these broker fraud schemes, our firm can help you get justice.
Atlanta broker fraud attorneys defend clients who have fallen prey to unethical practices
It can be hard to be certain at first if you’ve become ensnared in a scheme, but it soon becomes clear when your needs and wants as an investor no longer align with the practices of your broker. At that point, we work for clients who have been the victim of any Atlanta broker fraud. Call The Frankowski Firm at 888.741.7503 or fill out our contact form to discuss your legal options.