Investment Negligence Attorneys Helping Clients Harmed by Miami Brokers
Advocating for victims of securities fraud and negligence in Florida and throughout the U.S.
Stock brokers owe a duty of care and due diligence regarding managing their clients’ accounts. When a stock broker fails to uphold the standards established to provide protection for investors, this can result in significant losses for investors who may have a cause of action against the broker for negligence or fraud.
At The Frankowski Firm, we understand the devastation that can occur following significant financial losses. When those losses could have been prevented, we help our clients pursue their rightful compensation. With more than 15 years of experience helping individual and institutional investors in Miami hold brokerages accountable for our clients’ losses, our securities negligence lawyers take a detailed approach to reaching a solution and we offer our clients honest answers and practical advice.
What are some examples of stock broker negligence and fraud?
The stock market goes up and down, so there is always some inherent risk for investors at all levels. If you have sustained significant or consistent losses, however, or there are discrepancies in your account – or any number of “red flags” – you may be the victim of negligence or fraud. The Frankowski Firm has the skills and resources to represent investors in claims such as:
- Unsuitability. A broker’s job is to get to know his or her client, to learn their preferences, their dreams and goals, their risk tolerance and a host of other factors, so that they can make the best recommendations. When the broker fails in this most basic responsibility, and their client suffers a loss due to unsuitable recommendations, it can become grounds for a cause of action against the broker.
- Failure to supervise. Investment firms can be liable for the actions of their employees. Most failure to supervise claims are paired with an additional claim against the individual broker or advisor.
- Misrepresentation/Omission. If a broker fails to disclose material facts in a sale, or in the recommendation of an investment that disguises the risk associated with the investment, they are misrepresenting and/or failing to disclose information that a client would need to make an informed decision.
- Churning/excessive trading. This practice occurs when a broker trades excessively in a customer’s account to generate more commissions.
- Overconcentration. This occurs when a broker concentrates too much of a client’s portfolio in a single investment or a certain type of investment. Failing to sufficiently diversify a client’s account leaves the client vulnerable to a greater risk of loss, and it represents a cause of action if the client suffers significant losses because of the lack of diversification.
- Selling away. The practice of selling a security to an investor that has not been approved for sale by the brokerage house is called “selling away.” If you suspect your broker of engaging in this activity, you should consult us right away.
- Breach of fiduciary duty. A breach occurs when the brokerage or investment advisor acts in a way that causes harm to the investor to benefit themselves.
Investors who have suffered losses or consistently mediocre returns because of the negligence or fraud of their brokerage form or investment advisor may be able to recover compensation through FINRA arbitration, mediation, or litigation, depending on the offense.
If you were the victim of securities fraud and negligence in Miami, call us today
. If you have lost money on your investments, or failed to make a reasonable return, you may be able to file a claim. At The Frankowski Firm, our investment fraud lawyers analyze your account and investigate the possible causes for your losses. We hold brokerages and investment advisors accountable for their negligence, and for securities fraud. To schedule an appointment in the Miami area, please call us at 888-741-7503 or complete our contact form.