High-Caliber, Cost-Effective Representation in FINRA Arbitrations - AAA Arbitrations - FINRA & SEC Investigations and Proceedings
Securities Litigation Attorneys Representing Investors in New York and Nationwide
Investing in securities carries a degree of risk, but the possibility of losing hard-earned wealth due to a broker’s or financial advisor’s fraudulent or negligent behavior is not a danger that an investor should need to consider. Investors who have suffered financial harm due to the fraud or misconduct of the broker or financial advisor on whom they relied to handle their investments often feel angry and uncertain as to whether there is any recourse for their losses. If you believe that you were harmed by securities fraud, New York FINRA arbitration lawyers at Weltz Law can analyze your situation and assist you in determining whether you should bring a claim against the party that caused your harm. Weltz Law represents parties in securities litigation and arbitration nationwide. We can aggressively advocate on your behalf to help you seek a remedy for your financial losses.
In many cases in which an investor loses money as a result of the fraud or negligence of a broker or financial advisor, the investor can avoid protracted litigation by resolving the matter through Financial Industry Regulatory Authority (FINRA) arbitration. FINRA is the entity that sets forth rules and regulations regarding securities and brokerages throughout the country. Additionally, FINRA offers arbitration and other services to resolve disputes. Arbitrators are neutral third parties who aid in resolving a conflict. In FINRA arbitration, an investor who has a complaint against a broker or financial advisor will present their case to an arbitrator or a panel of arbitrators, who will hear testimony and review documentary evidence before issuing a final and binding decision on the matter. The FINRA arbitration attorneys at our New York firm can represent you in these complex proceedings.
Breach of Fiduciary Duty
In the investment world, financial advisors have a higher level of knowledge and skill than their clients. Therefore, they have a fiduciary duty imposed by law to act in their clients’ best interests in providing investment advice. This duty imposes an obligation to put a client’s interests first and to act in good faith. It also requires financial advisors to fully disclose any material facts and conflicts of interest when providing investment advice. If a financial advisor fails to act in a client’s best interests, the client may be able to pursue a claim against the advisor for a breach of the fiduciary duty owed to the client.
Fraud and Misrepresentation
Investment professionals have a duty to be candid when providing advice and recommendations to their clients regarding investments. When investment professionals provide inaccurate or incomplete information about securities to their clients, it may constitute misrepresentation or fraud. Fraud and misrepresentation can lead to misguided investment decisions and financial losses. Claims of misrepresentation or fraud require an investor and their New York FINRA arbitration attorney to show that the broker or advisor knowingly made a false or misleading statement about a material fact, on which the investor relied to their detriment.
Investment professionals do not need to actively attempt to deceive their clients to be held accountable for the financial harm caused by their actions or inactions. To the contrary, when investment professionals act negligently or recklessly, they can be held liable for any harm that results. If you suffered financial losses due to the negligence of a broker or financial advisor, you should consult the knowledgeable securities litigation attorneys at Weltz Law to discuss your possible next steps.
Failure to Supervise
If you suffered financial losses due to the intentional or negligent acts of a broker, you may have a claim against not only the individual broker but also the brokerage firm that employed the broker. Under federal law, brokerage firms have a duty to supervise the activities of their brokers to ensure that they are acting in compliance with securities laws and regulations. Thus, if a broker commits misconduct, the FINRA arbitration lawyers at our New York firm can potentially help you hold the broker’s employer liable for its failure to supervise the broker.
Federal laws and regulations impose a duty on brokers to observe high standards of commercial ethics in trading securities on behalf of their clients. Account churning is a breach of this duty that occurs when brokers buy and sell securities excessively, solely to generate commissions. If an investor believes that their broker has traded excessively without regard for their financial objectives, the investor may be able to pursue a claim against the broker based on this overtrading.
Brokers and financial advisors are strictly prohibited from buying or selling securities without a client’s express permission. While most brokers adhere to this rule, some brokers may undertake a trade without discussing the risks and implications of the trade with the client. If an investment professional trades in securities without a client’s authorization, this constitutes unauthorized trading. Unauthorized trading is a breach of ethics and can result in significant losses for an investor.
Brokers have a duty to make investments that are appropriate to meet each client’s individualized needs and objectives. Thus, to make a suitable investment, a broker must seek information regarding the client’s financial situation, age, investment experience, and other investments. Additionally, the broker must inquire as to the client’s risk tolerance, liquidity needs, tax status, and objectives in investing. If a broker fails to gather the information about the client that would be appropriate in the circumstances, this can result in unsuitable investments that do not conform to the client’s financial goals. Our New York FINRA arbitration lawyers can help you assess whether you were harmed due to unsuitable investments.
Ponzi schemes are pyramid schemes that are designed to defraud investors with promises of substantial returns on investments. The funds given to the operator are not actually invested, however, so investors never see any true returns. Instead, investors are paid money that they are advised is a return, but it is actually money provided by new investors. Thus, investors are defrauded into allowing the operator to keep their money. Ponzi schemes are not sustainable, however, and eventually either unravel or are discovered by authorities. Perpetrators of Ponzi schemes not only face criminal penalties but may be held civilly liable as well.
Financial Elder Abuse
Older members of society are particularly susceptible to financial fraud and deception. In many cases, an older person will be deceived by a person whom they trust into signing over money, assets, or investments for that person’s financial gain. Additionally, certain predatory schemes directly target the elderly. Predators may manipulate older people into paying for services that they do not need or sinking money into investments that they do not understand. If you believe that you or a loved one may be a victim of financial elder abuse, you should speak with one of our experienced investment fraud attorneys as soon as possible.
Contact our Skilled FINRA Arbitration Attorneys in New York
Weltz Law has more than 25 years of experience representing parties in FINRA and AAA arbitrations, FINRA and SEC investigations and proceedings, state administrative proceedings, and cases in federal and state courts. Many of our clients have lost most or all of their assets because of broker or advisor misconduct, leaving their financial future in jeopardy. Our firm is aware of the devastating effect of substantial financial losses and works tirelessly to protect his clients’ rights. You can contact Weltz Law at 877-558-1576 or via the online form to discuss your situation.