Broker Misconduct Attorney

A financial advisor should be a source of appropriate recommendations, transparent information, and honest advice. They are an investor’s connections to Wall Street, recommending suitable investments and creating a diversified portfolio. The advisor-investor relationship relies on the ability to trust an advisor to provide suitable recommendations and treat their clients fairly.

Unfortunately, there will always be brokerage firms that abuse their position, pressuring brokers to sell bad investments to their clients through their advisers in order to increase their own profits at the expense of investors. While not all market losses stem from misconduct, some do. Learn to recognize this harmful practice to protect yourself and your family from fraud. If you believe you’ve been a victim of misconduct, Erez Law may be able to help you get some or all of your lost money back. Our law firm represents clients through the U.S. including Puerto Rico, as well as throughout Latin America in countries like Venezuela, Argentina, Colombia and Mexico. We represent individual investors, retirees, trusts, pension plans, partnerships, family partnerships, family offices and ultra-high net worth individuals. We are invested in helping you recover losses from untrustworthy or inexperienced brokerage firms.

Why Do I Need a Broker Misconduct Attorney?

Any prospect of a legal fight can seem nearly impossible to handle, and hiring an attorney can provide validity and weight to your claim. Legal representation is the first step to ensuring that your case is getting the full attention it deserves. You had placed massive amounts of trust in your broker with your money, and a violation of that trust should be fought both swiftly and effectively. An attorney with experience will be there to fight this legal battle for you.

An attorney will be able to handle the paperwork, the deadlines, and the stress that comes with fighting a negligent stockbroker for what they owe you. They know the legal landscape and a broker misconduct attorney will be intimately familiar with everything you’ll need to do to win a case against a corrupt stockbroker who profited from your loss.

Why Should I Have Erez Law Represent Me?

If you have experienced a financial loss due to the misconduct of a stockbroker, you need to know your legal options moving forward. But most importantly, you need a firm you can trust. We will earn your trust as we fight vigorously for you against the party who broke it. That is the Erez Law guarantee.

Having been representing people for over 20 years, our attorneys have won all kinds of cases. We have recovered over 150 Million dollars in mislead investments for our clients. We treat every case like it will go to trial and set ourselves apart with our proven track record of success. In fact, we’ll let some of our recent results speak for themselves:

These are just a few of the cases that we have won for our clients. We represent everyone—from the high-profile businessperson to the families whose retirement was swindled by a lying broker. Our firm believes that when good people lose valuable money and assets based on lies and greed on the part of the broker, they deserve every cent back.

The Broker Duty of Fair Dealing

Broker misconduct, or securities fraud, can cost a family hundreds of thousands of dollars in an instant. “Broker misconduct” is an umbrella term that refers to a range of ways a broker can betray the trust of his or her investors. Brokers must act in the best interests of clients throughout the investment relationship. The basic duty that brokers owe is a “duty of fair dealing.”

The duty of fair dealing is, in essence, a broker’s promise to disclose all facts relating to an investment, follow client instructions, ensure investments are suitable, and charge fair market rates. Investors trust brokers to steer them in the right direction regarding investments, advising them candidly. Brokers have many professional duties during the broker-client relationship, including:

The Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), federal securities laws and state securities laws have strict rules and laws when it comes to a financial advisor’s conduct. Although these rules regulate adviser conduct, many brokerage firms require advisors to recommend unsuitable investments to increase their own profits. Without truthful and complete disclosures, many bad brokers sell unsuitable investments and mislead their clients to their detriment.

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Types of Broker Misconduct We Fight Against

A broker can commit fraud during any stage of the investing process. Negligent brokers may make a harmful mistake by failing to do their duties. Fraudulent brokers purposefully participate in deceptive schemes to boost their own commissions. Either way, victims may have a legal outlet that can help them regain their lost investments or retirement funds. Here are a few common types of broker misconduct we’ve encountered in our years as attorneys:

These are just three of the many ways financial advisors can commit fraud or act carelessly. Other potential issues include:

There are risks associated with investing, but your broker should not their source. If a broker’s misconduct has caused you substantial financial harm, we can help you hold them accountable.

The Problem With BrokerCheck

To a potential investor, it could seem like hiring a stockbroker is taking a shot in the dark and there is just no way to ensure that who you are getting will have your interests at heart. This is a common problem with only a few suggested solutions, as it’s difficult to prescreen possible brokers completely. One such service, founded by the Financial Industry Regulatory Authority or FINRA, is It’s known as the best tool for finding a broker, but a recent study found that the website was far from perfect.

The study was conducted by doctors Hammad Qureshi and Jonathan Sokobin of FINRA, and supplemented through the Securities Litigation and Consulting Group; they were looking into the effectiveness of One of the key findings of the research found that, overall, the website did not provide a lot of helpful information about potential brokers. The website did have the significant capability to help investors distinguish between brokers who were associated with “investor harm events” to those that didn’t, but researchers also revealed that the website wasn’t letting on as much information as it had. The website doesn’t look at firms as a whole, despite having that information, but instead weighs each broker individually. This is important because another finding linked misconduct between coworkers. If one broker’s coworker had harmed their client, then it was likely that they were also harming their clients. Corruption spreads through the work culture through an atmosphere of tolerating misconduct.

A suggestion, following the study, was that the website add to the algorithm: in determining a good broker, include how many complaints their firm has received. When moving forward, knowing the results of this study can help you choose a new broker. The attorneys of Erez Law are interested, however, in helping you now. If you didn’t find out your broker was corrupt until it was too late, you need an attorney who can fight for you.

How Do I Know if My Stock Broker is Engaging in Misconduct?

Unless you bring your case and financial statements to a consultation with a broker misconduct attorney, there is no concrete way to know if your broker is swindling your investments. However, there are a few signs that you can look for when checking your finances to see if something strange is going on. These signs include:

These are evident red flags that mean that your broker is engaging in misconduct with your portfolio. If you see any of these signs appearing in your account or financial statements you need to call an attorney as soon as possible.

Statistics in Stockbroker Misconduct

Complaints by investors have been on the rise since 2012, according to statistics on the Financial Industry Regulatory Authority. In 2016 alone there were:

That means that in 2016, only 75 percent of all investor claims were resolved—in 2012, almost 90 percent of them were. It seems like investors are not getting the justice they deserve. Since brokers are in a position of relative power, they need to act responsibly whenever making any kind of financial suggestion.

Trustworthy Broker Misconduct Attorneys

Erez Law extends its professional legal services to anyone who believes a broker’s misconduct has caused major losses. If you’ve lost more than $50,000 in bond losses, fund losses, stock losses, or structured product losses, and you have a feeling there’s been foul play, contact Erez Law. Our trustworthy team of securities attorneys work to prosecute cases on behalf of wronged investors. Call (888) 840-1571 for a free consultation.

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