Securities Lawyers Nashville Combat Investment Fraud and Broker Manipulation
Getting justice for wronged investors in Tennessee
Our securities lawyers Nashville have seen small investors, retirees, and even experienced entrepreneurs be drawn into pernicious scams and lose their capital through broker misconduct.
The Frankowski Firm helps investor clients to learn about and achieve recovery after investment negligence or fraud. We work assiduously to repair the financial harm our clients’ experienced and for our clients’ to be reimbursed for any lost or misappropriated funds.
What constitutes negligence or fraud?
There is a multitude of ways that brokers may be liable for their misconduct. Some of these include carelessly placing a client’s funds in an unsuitable account or making unreliable claims regarding an investment that the client relies upon to their detriment. Our Tennessee investment negligence lawyers are familiar with many types of investment-related claims, including:
- Buying on margin. This type of investment involves borrowing funds from a broker and paying at least 50% of the purchase price directly. This may result in significant profits, but it may also result in equally significant losses. Having a broker who is familiar with your specific needs and goals in investing will help determine if this is a suitable choice.
- Closed end funds. The returns on closed end funds are sometimes extremely attractive, but the few successes do not outweigh or negate losses, risks, obfuscation of terms and even lack of disclosure of past performance. Without competent assistance, unsophisticated investors can find themselves enmeshed in a dangerous and costly endeavor.
- Master limited partnerships. Master limited partnerships focus on oil and gas investments that come with significant risks, not the least of which is the ongoing need for new capital, often from banks who in turn charge fees. Furthermore, the oil and gas industries in the US appear to have a limited lifespan based on demand for new, green energy products.
- Mutual funds. Mutual funds are publicly traded investments managed by registered investment advisors and regulated by the SEC. While mutual funds can be safe investments, without proper guidance by an investment professional that is familiar with your individual needs and goals, substantial issues may arise.
- Penny stocks. While the low value and lack of liquidity may attract a certain type of investor who enjoys high risks, these stocks are not suitable for the majority of investors. If a broker or investment firm uses hard sales tactics to push penny stocks on a client for whom it would be an unsuitable investment, these actions would constitute negligence at the very least, if not outright fraud.
- Private placement investments. These investments are not registered or regulated by the SEC, and thus are not required to disclose complete information about their status and details. Typically, high-risk private placement investments are only appropriate for specific investors.
- Real estate investment trusts (REITs) rarely disclose past performance, fees, taxations schedules and redemption restrictions. Unwary investors may invest in these trusts only to discover the terms or profit are not what was represented at the outset. Most investors never truly understand the product they are investing in to begin with, and therefore do not understand the risks associated with it. This puts them at risk of significant financial loss.
- Variable annuities. Variable annuity investments often cause more harm than good to the investor and his/her beneficiaries. Financial advisors rely on scare tactics to promote these investments, frequently preying on seniors by convincing them that the variable annuity will protect their existing investments.
Nashville investment negligence attorneys work hard for you and your rights
The role of an investment advisor is not to be taken lightly and an advisor has a fiduciary duty to the client. If you or a loved one has been prey to any Nashville investment fraud, call The Frankowski Firm at 888.741.7503 or complete our contact form to discuss your legal options with an experienced Nashville investment fraud lawyer.