San Francisco Broker Fraud Attorneys Hold Financial Advisors Accountable for Knowingly Misleading their Clients

Serving justice when brokers put their interests above those of their clients in California

Financial advisors are entrusted to make recommendations based on the best interests of their clients. However, competing interests, such as financial incentives from companies selling these investments, can sway brokers to provide skewed counsel. Investors should know that the Securities Exchange Commission (SEC) protects their rights.

The San Francisco stockbroker fraud attorneys at The Frankowski Firm have an intimate understanding of these rights and how to pursue justice when they have been compromised. Led by founding attorney Richard Frankowski, the team brings securities arbitration claims and permissible civil claims against negligent and incompetent brokers and investment firms that have misled their clients, causing investors to sustain significant financial losses.

What activities constitute wrongdoing on the part of brokers and investment firms?

An experienced San Francisco investment fraud lawyer determines the type of fraud that has occurred and who can be held liable. Examples of cases the attorneys at The Frankowski Firm have brought against fraudulent brokers and firms include:

  • Suitability claims. Every client brings a distinct set of risk tolerances, wishes and investment objectives to an investment broker or firm. It is the role and responsibility of that broker to make wise suggestions based on those needs and resources. Failure to do so may result in a suitability claim
  • Selling away. Selling away involves the broker selling unauthorized securities and/or circumventing the firm’s compliance requirements to do so. In this situation, both the broker and the firm are at fault for this breach of duty.
  • Ponzi schemes. Returns in this type of fraudulent investment are based on subsequent investor’s capital and are not attached to a legitimate, capital-generating entity. Engaging in Ponzi schemes is illegal, and both brokers and firms are held accountable for luring clients into these sham investments.
  • Failure to supervise. When a broker has engaged in fraudulent activities, the investment firm is also accountable. Branch managers have a duty to supervise their brokers and ensure compliance with all regulations, as well as adherence to best practices.
  • Failure to diversify. Common sense in financial planning is to not “put all of your eggs in one basket.” A responsible advisor will diversify a client’s portfolio so that no one company, sector or type of stock can make or break the investor’s financial future. Overconcentration is a form of investment negligence.
  • Breach of fiduciary duty. Financial advisors have a fiduciary duty to their clients to provide them with the highest standard of care. This means they must put the interests of the investor ahead of any other consideration, including any financial gain the advisor might obtain as a result of selling a particular security, and recommend suitable investments.
  • Account churning. Churning is a practice whereby investment brokers buy and sell securities in excess of a client’s wishes or interests in order to obtain commissions.

If you believe that you have been a victim of broker fraud in California, our knowledgeable lawyers can help.

Trust the experience of lawyers that know how to hold firms and brokers accountable

The San Francisco broker fraud lawyers at The Frankowski Firm have the knowledge and experience to obtain justice when advisors engage in fraudulent practices. Schedule a consultation today by completing our contact form, or phone us at 888.741.7503.