Experienced Atlanta Lawyers Address Investment Fraud

Determinedly helping those affected by investment fraud or negligence in Georgia

The Frankowski Firm believes that with an informed population of investors, it will be possible to achieve a more transparent and fair industry for all participants. Our attorneys help investors who have sustained financial losses because of negligence or incompetence on behalf of their brokers or brokerage firms.

What forms do fraud and negligence take?

While fraud has more negative connotations, investment negligence carries consequences that are equally dire. Fraud normally is the deliberate deceit of a client and negligence is the disregard for the client’s needs or goals. The legal standard of suitability covers the investor’s ability and willingness to undertake financial risks. A knowledgeable brokerage firm will make certain to only present each investor with appropriate choices based on his or her suitability. When this standard of suitability is minimized or outright disregarded, Georgia investment negligence lawyers at The Frankowski Firm are at the ready to assist clients in achieving a just resolution, in cases such as:

  • Variable annuities. Variable annuity investment proposals may rely on scare tactics, preying on seniors by convincing them that the variable annuity will protect their existing investments. The reality is that these investments often unnecessary and risky.
  • Buying on margin. While the returns offered by buying on margin may be vast, the upfront costs, coupled with the equally large risk of losses, rarely make these investments suitable. In many cases, the broker’s fiscal well-being becomes entangled in the financial outcomes of the investor, making the situation rife with potential for fraud or negligence.
  • Mutual funds. Because these publicly traded investments are managed by registered investment advisors and regulated by the SEC, mutual funds are traditionally considered safe, and do have advantages, including portfolio diversification and professional oversight. However, they are not suitable for every investor, based upon his or her aims and intentions.
  • Private placement investments. Private placement investments are indeed private, not overseen by the SEC. This lack of oversight alone makes them a hazard, but furthermore, they tend to be long-term, low liquidity investments that are rarely suitable for non-professional investors.
  • Penny stocks. As low-value, low-liquidity stocks, penny stocks are high-risk investments and are frequently unsuitable for the typical investor.
  • REITs. While real estate has traditionally been claimed to be a sound investment with little risk, Real Estate Investment Trusts (REITs) do not fall into this category. Instead, REITs are typified by their lack of disclosure of risks, past profits, tax classification and penalties for early withdrawal. Because they rarely disclose past performance, fees, taxations schedules, and redemption restrictions, most investors understand neither the product they are purchasing nor the risks associated with it. Investors may sustain substantial losses as a result.
  • Master limited partnerships. These volatile investments in energy and gas infrastructure carry significant risks. While some do manage to generate short-term profits, it is invariably at the cost of long-term risks. Brokers are often seduced into advocating in favor of their client’s participation as a result of the large commissions associated with master limited partnerships.
  • Closed end funds. Some investors believe that, because these funds are professionally managed, they are somehow low-risk. In fact, excessive fees, commissions and expenses divert potential for profit from the investor to the brokerage or investment firm.

These are not the only ways in which a broker might misuse a client or abuse his or her trust and goodwill. When brokers put their financial gains and above the needs and suitability of their client, our lawyers are here to assist.

Types of Cases We Handle

Our Atlanta attorneys handle a variety of cases, including:

Securities NegligenceBroker Fraud
FINRAInvestment Fraud

Atlanta investment fraud attorneys protecting clients from negligent or incompetent brokers

We hope that by reading this information you can make better-informed decisions about your investment choices and will be better able to advocate for your own needs and goals. However, if you or a loved one has already been deceived by an Atlanta investment broker or investment firm, call The Frankowski Firm at 888.741.7503 or fill out our contact form to discuss your legal options.