Alabama Broker Negligence and Fraud

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Knowledgeable Alabama Broker Fraud and Negligence Lawyers Providing Skilled Representation

Protecting the rights of investors in and around Birmingham

Financial security is a goal that most people aspire to attain in life. Investing is extremely complex, so many individuals rely on brokers to assist them with making appropriate investment decisions. When the broker’s negligent actions result in substantial financial losses, innocent people and their families are left to suffer.

The experienced Alabama broker negligence attorneys of The Frankowski Firm understand the significant struggles created by a financial loss. In an attempt to justify their actions, brokers often attempt to blame standard market fluctuations. Yet, far too often, it is discovered that fraudulent and negligent actions actually caused the losses. With 15 years of experience, we utilize our skill and knowledge to fight for the rights of each of our clients.

Standing up to brokers when they breach their legal duties

Brokers have a duty to recommend suitable investments to their clients. If they fail to meet this standard and act in an improper manner, a civil claim can be brought to achieve compensation that a harmed individual or entity deserves.

Our knowledgeable Alabama broker fraud attorneys have helped numerous investors stand up to irresponsible brokers, including claims involving:

  • Failure to supervise. Investment firms are ultimately responsible for the bad acts of their brokers and advisors. If they fail to properly train or supervise these employees and financial losses result, the firm may be held accountable.
  • Breach of fiduciary duty. A fiduciary duty is a responsibility that a registered investment advisor has to consistently act in the best interests of the investor. When they feel to meet this duty, a breach of fiduciary duty claim may prove successful.
  • Churning. Stockbrokers are supposed to act in the interests of the investor, yet they sometimes make purchasing and selling decisions for the primary purpose of generating higher commissions for themselves. This is a breach of their duty to the investor.

Holding brokers accountable for negligent decision-making

Brokers may face civil claims for a variety of reasons, including inadequate analysis of investment options and lack of disclosure to clients. Other examples of negligent actions include:

  • Failure to diversify. Diversification is the practice of placing funds into various stocks and investment options. The purpose of this strategy is to minimize loss, should the market experience a downturn. The failure to diversify puts an investment at an unreasonably high risk, which is generally not in the individual’s best interests. Brokers may be held accountable for inadequate diversification.
  • Selling away. Brokers should generally sell securities that are held or offered by their investment firm. In some instances, brokers sell outside securities in an effort to avoid the firm’s compliance department. The stockbroker and firm may be held liable for this inappropriate behavior.
  • Suitability claims. These common claims assert that a broker made purchasing decisions that were unsuitable for the investor’s needs and goals.

Contact our Alabama broker negligence and fraud attorneys

The skilled Alabama broker fraud attorneys at The Frankowski Firm understand the life-changing consequences of stockbroker negligence. Whether the loss stemmed from a breach of fiduciary duty or an illegal Ponzi scheme, we work with financial experts to prove that the broker’s actions caused actual and quantifiable harm to the investor. For help with your broker fraud or negligence case, contact our Birmingham office at 888.741.7503 or complete our contact form.

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The recoveries, verdicts, favorable outcomes, and testimonials described on this site are not an indication of future results. Every case is different, and regardless of what friends, family, or other individuals may say about what a case is worth, each case must be evaluated on its own facts and circumstances as they apply to the law. The valuation of a case depends on the facts, the damages, the jurisdiction, the venue, the witnesses, the parties, and the testimony, among other factors. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.

Disclaimer: Mr. Frankowski is licensed in Alabama and Florida. He is not licensed in any other state, including Nevada and California. Mr. Frankowski has represented investors from all over the country in securities cases including: Alabama, California, Colorado, Florida, Georgia, Illinois, Kentucky, Louisiana, Mississippi, Nevada, New Mexico, New York, North Carolina, Tennessee, Texas.
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