Reliable Securities Fraud Attorneys Protecting Investors Who Have Experienced Deceit through Misrepresentation or Omission
Safeguarding investors who have suffered financial losses
A broker or investment firm has a whole series of obligations to his or her client. Even if it seems obvious or trite, being honest and thorough about the nature of investments, whether it be risks, conflicts of interest, or other potentially uncomfortable conversations, is a requirement through the Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). When investment firms fail in this basic duty, the client is not only harmed by the subsequent financial losses, he or she is also materially harmed by the destruction of the faith in the investment industry as a whole.
The legal team at The Frankowski Firm advocates and litigates for investors who have been lied to either overtly or via omission. Our trusted professionals have the experience necessary to fully assist investors who have suffered these losses in both FINRA arbitration cases and in civil trials.
What is the broker’s obligation?
Investment firms and brokerages are obliged to utilize full and fair disclosure to all their clients. Specifically, this means that the broker must not make any untrue statements, nor omit relevant details or facts to mislead their client. This becomes a critical issue when the statements, details, and facts are the sole or primary source of information an investor is using to determine their financial course of action.
What constitutes misrepresentation or omission?
It can be difficult to prove intention; however, the SEC’s fraud regulations are focused on the investor’s outcome and how that may have been influenced by the broker’s lack of honesty. The SEC allows investors who have had losses to bring legal action against a broker who has engaged in the following:
- Misrepresented or omitted a material (key) fact, or
- Was intentionally reckless, or
- Had a conflict of interest in the transaction that was not disclosed, and
- Was relied upon by the investor, and
- Resulted in a material investment loss.
If there has clearly been an omission or misrepresentation due to unintentional circumstances, the investor may choose to pursue negligence charges instead. All these details can seem rather divorced from real-world situations that investors face. But misrepresentation and omission most often occur due to lack of due diligence or investigating an investment fully before giving advice about it, failing to disclose either the full extent of the costs or risks of an investment, giving unrealistic projections for an investment, or incorrectly calculating the performance of an investment. All these types of deceit are both intentional and prosecutable offences under SEC guidelines and FINRA rules.
Handling complex cases of securities fraud and negligence involving misrepresentation or omission
No investor anticipates deception or losing money due to lack of proper disclosures. If you have experienced misrepresentation or omission by an investment firm or broker, please call 888-741-7503 or reach out to The Frankowski Firm via our contact form to discuss your legal options.