Nashville Investment Attorneys Combat Investment Deceit
Protecting Tennessee investors harmed by broker malfeasance
Investing comes with both risks and rewards for the investor and the broker/ brokerage firm. From the client’s perspective, the reward is financial gain and the risk is losing their investment. For the brokerage firm or professional, earnings are the goal and this is dependent on the success of the client’s investments. Our Nashville investment attorneys have seen many clients suffer from broker wrongdoing, and we are dedicated to helping investors who have sustained financial losses because of the negligence or incompetence of a broker or brokerage firm.
The Frankowski Firm works with our clients to achieve financial recovery in instances of stockbroker fraud through all legal avenues, such as FINRA, state and federal courts. When you invest, the risk should be in the market, not in your broker.
What are the typical categories of broker fraud?
Broker fraud comes in a wide variety of types, all with their own unique risks and characteristics. It is an unfortunate fact even the most well-prepared, experienced, savvy, and fiscally wise investor may at some point encounter one of the following illegal practices:
- Account churning. Churning an account is the colorful term to describe the process of making unnecessary sales and purchases simply to generate commissions for the broker.
- Breach of fiduciary duty. When financial advisors place their own interests ahead of those of their client’s and fail to provide sound guidance in regards to suitable investments, this is considered a breach of their fiduciary duty.
- Failure to diversify. This occurs when an investor’s portfolio consists of too few varieties in the type of investment, in the industry invested in, and even the duration of investments. The concern is that, should one industry or type of investment fail, the investor will suffer catastrophic losses relative to their investment.
- Failure to supervise. When a broker commits fraud, they are not the only guilty party. In such cases, the investment firm is frequently liable as well for failing to properly monitor their broker’s adherence to regulations, such as those set forth by FINRA.
- Ponzi schemes. Ponzi schemes are made up of an ongoing series of recruitment, with each new recruit paying those who had already been involved in the scheme. However, the population eventually hits a saturation point, and all alleged profits dry up, leaving investors hanging.
- Selling away. When a broker sells non-firm securities to obtain a commission, they are not only in violation of their firm’s policies; they are engaging in fraud. This breach of duty by the broker is often related to the firm’s failure to supervise.
- Suitability claims. Each investor has an individual tolerance for risk, preferred duration of investments, and investment objectives. Based on this information, a reputable broker will ascertain an investment’s suitability for the client. When these parameters are disregarded, the broker is liable for a suitability claim.
Turn to our Tennessee broker fraud attorneys if you believe that your investment or brokerage firm has committed wrongdoing.
Practiced Nashville broker fraud attorneys bring legal action against brokers who fail to privilege their client’s needs
Brokers and investment firms have a right to make a fair profit; however, these profits must not come at the expense of their clients. We work for clients who have lost money from the deliberate or negligent actions of an individual broker or brokerage firm or who have otherwise been the victim of Nashville broker fraud. Call The Frankowski Firm at 888.741.7503 or complete our contact form to discuss your legal options with an experienced Nashville broker fraud lawyer.