Securities fraud and misrepresentation can cost unwitting investors their entire life savings. Unsophisticated investors are especially at risk for investment fraud since they lack the knowledge or experience to know if they are being misled. If you think you’ve been the victim of securities fraud or misrepresentation, contact an attorney for help.
Common Signs of Broker Fraud or Misrepresentation
A poor financial advisor may purposefully omit facts, misrepresent an investment, or fail to disclose conflicts of interests – all to increase their own profits. At Erez Law, our years of experience in securities fraud litigation have given us a few common indicators of fraud and misrepresentation. While we can’t tell you if we believe that your broker or brokerage firm is guilty of fraud without a consultation, you can get an idea of whether you’re a victim with a few common signs.
You may be entitled to compensation after your investment portfolio performs badly if:
- You suffered sudden and significant losses.
- Trades that you didn’t authorize or don’t understand appear on your account.
- Your portfolio has an excessive number of trades.
- Your portfolio has unexplained withdrawals or losses.
- Your broker encouraged risky investments that made you uncomfortable.
- Your broker made an investment without giving you all the pertinent details.
These are signs your broker is mismanaging your portfolio. A good financial advisor will only make investments suitable and appropriate for your goals, profile, and risk objectives. If you feel your broker took advantage of you, misrepresented an investment opportunity, or otherwise unfairly caused your losses, seek help from an attorney. You may be able to recover the financial losses that a bad broker caused you.
How to Prove a Case Against a Bad Broker
Fraud and misrepresentation cases look different from negligence cases. In a negligence case, the broker or firm unintentionally misrepresented facts relating to the sale and purchase of a securities investment. While negligence is still a form of broker misconduct, victims wouldn’t pursue a fraud case. Instead, they would file a negligence claim. If, however, a broker or firm intentionally omitted material information, you may have grounds for a securities fraud claim. Proving such a claim requires five basic elements:
- The broker omitted or misrepresented material facts in his/her recommendations.
- The omission or misrepresentation was intentional and/or reckless.
- The recommendations that the broker made related to the purchase or sale of securities.
- You, the investor, relied on the broker’s recommendations.
- You suffered an investment loss because of the broker’s recommendations.
With these five elements, you may be able to bring a successful securities fraud claim against an individual broker, the brokerage firm, or both. Talking to an attorney is in your best interest if you think an unskilled or fraudulent brokerage firm is putting your money at risk.
Your Source for Skilled Legal Representation
At Erez Law, we may be able to help people who have suffered losses at the hands of fraudulent brokers. Jeffrey Erez began his legal career in 1997 upon graduation from the University of Miami School of Law. Today, Jeffrey Erez has dedicated his practice to serving wronged investors nationally, as well as investors throughout Latin America. He created Erez Law to bring together a team of attorneys who commit their energies and expertise to helping investors who have lost at the hands of fraudsters. Read more about the different types of broker misconduct cases we handle.
If you’re not sure whether securities fraud caused your losses, contact Erez Law. An inkling of a suspicion is enough to at least chat with an attorney about your situation. Our attorneys will help you understand what may have happened to result in your losses and give you our professional legal advice moving forward. Call (888) 840-1571 today.