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There are many stockbrokers and brokerage firms that steal from their clients under the auspices of providing A-class financial advice. Broker theft is more pronounced in accounts owned by elderly investors who have little capacity or sophistication over their financial portfolio. It can, however, happen to anyone. When this fraudulent behavior occurs, it is prudent to take resolute legal action under the guidance of a professional securities litigation attorneys at Weltz Law. We are highly experienced in securities litigation, arbitration, and all legal matters pertaining to the financial industry. We have invested in helping our clients recover losses from untrustworthy brokerage firms, and we will extend our energy and resources to helping you achieve desirable results in your FINRA arbitration.
Broker Theft
Today, many stockbrokers, brokerage firms, and financial advisors engage in unprofessional and unethical behavior that land their clients in significant financial losses. Broker theft is one of the misconduct brokers engage in. Even though there are many laws and regulations that have been enacted to protect investors against misdemeanors from their financial advisors, brokers use various schemes to steal their hard-earned money. In case you have been swindled by a brokerage firm, your claim can be resolved in securities arbitration. A seasoned securities arbitration attorney from Weltz Law have in-depth skills and knowledge in handling this kind of arbitration and know how to prepare a compelling presentation that will ensure you are adequately compensated for your losses.
Common Types of Broker Theft
Brokers use different methods to steal from their clients. Some of these methods include, but not limited to:
- Fake investments/selling away: This is where a broker makes up a great investment pitch bit doesn’t actually invest the client’s money. The broker engages in Ponzi-scheme-like activities to prevent the client from recovering lost funds.
- Borrowing money from clients: FINRA rules prohibit registered brokers from borrowing money from customers, but there are some who enter into lending arrangements anyway. Brokers who borrow money from clients will look for deceptive ways to evade repayments.
- Elder abuse: Some brokers take advantage of investors’ diminished capacity to exploit their assets. In some cases, they insert themselves as bookkeepers and manipulate the sending of checks. By pretending to manage an elderly person’s daily spending, they end up stealing funds in the process.
Other types of broker theft include:
- Taking money from an investor’s account for personal use
- Transferring stocks or cash from a client’s account without permission
- Forging checks
- Affinity fraud (investment scams directed towards particular professions and groups)
- … and more.
Why Do You Need A Securities Litigation Attorney For Broker Theft Claims?
Fighting a broker theft arbitration can be challenging. Hiring a skilled securities litigation attorney is one of the surest ways of ensuring you are compensated for financial losses. Proper legal representation is a major step towards ensuring your case gets complete attention. An experienced attorney will help counter the arguments from skilled attorneys hired by your brokerage firm and ensure you get justice swiftly and effectively.
