California Broker Negligence and Fraud

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Experienced California Lawyers Help Victims of Broker Fraud and Negligence

Investment brokers in Sacramento, San Francisco and Los Angeles should work for you – not against your best interests

It’s common knowledge that the best way to make money in the stock market is to start with money and to take the best advice you can get from a stockbroker. When brokers abuse these relationships, it is not simply a financial loss for the client that results. Instead, there are serious legal repercussions that arise when a licensed broker fails to adequately advise his or her clients, or sells them unsuitable investments in order to personally profit.

Our California broker fraud and negligence lawyers have endeavored to help our clients get legal and financial justice. The Frankowski Firm works for investors after they have experienced losses due to the actions on the part of their financial advisors. We work for you to help you recoup your losses and restore your financial security.

What types of investment losses constitute broker fraud and negligence?

Sadly, there are myriad ways in which a financial professional can conduct their business illegitimately. Sometimes this is via specific schemes to manipulate or target investors; other times, their lack of action forms the basis for a legal case.

Some of the more common types of broker fraud and negligence cases involve the following:

  • Suitability. Part of the duties of an investment broker include promoting investments for their clients that meet those clients’ financial needs and goals. Suggesting or using high-pressure tactics to influence clients into making clearly inappropriate financial decisions is not simply immoral, but also illegal.
  • Selling away. While it’s a nice idea to think that your investment professional has an inside scoop on a stock that isn’t offered by his firm, the reality is that these situations are generally a way for the broker to make money, rather than the client.
  • Ponzi or pyramid schemes. Ponzi and pyramid schemes are two of the most well-known types of schemes, where the money is produced through the recruitment of new investors rather than through any real product’s earning.
  • Failure to supervise. When illicit behavior or underhanded suggestions happen within a brokerage firm, there is more than one person at fault. The firm is liable for the behavior of its employees, so when one broker breaks the law, the firm is also at fault.
  • Failure to diversify. No matter how small an investment a client is looking to make, a responsible advisor will encourage those funds to be placed over a few different areas or types of stocks. This way, should any one fail, the investor won’t be left destitute. If a broker neglects this warning or direction, he or she can be held liable for the financial losses accrued.
  • Breach of fiduciary duty. Brokers have a legal responsibility to make suitable investment decisions. Shirking this responsibility is a prosecutable crime.
  • Account churning. While brokers can earn substantial amounts over time, there are also periods where their clients do not need frequent assistance, and the fees that brokers assess for their time may dry up. Some underhanded investment professionals can employ the practice of “churning,” or making frequent, unnecessary trades on a client’s account, simply to earn the associated fees.

Astute California broker fraud and negligence attorneys show you the way to justice

Not every investment loss is criminal. However, in situations where investment professionals or brokers gave misleading or outright dangerous guidance, there may be legal recourse. If you or someone you know in Sacramento, San Francisco or Los Angeles, California has lost money through intentional or unintentional actions of a brokerage firm, call The Frankowski Firm at 888.741.7503 or complete our contact form to discuss your legal options with an experienced California broker fraud attorney.

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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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