Excessive Trading Lawyer

Losing money because of an unscrupulous stockbroker who excessively traded money from your account can be financially devastating, and the broken trust is difficult (if not impossible) to overcome. If you suspect your broker of excessive trading, otherwise known as “churning,” it is in your best interest to hold them accountable for their actions. Churning costs you money but delivers no monetary benefit. In fact, most cases of churning result in losses that do not align with the prosperity of the market. When stockbrokers are reckless with the hard-earned money of their clients, they are breaking the law and can be held liable.

The attorneys at Erez Law have years of valuable experience helping honest investors recover their losses after trusting the wrong stockbroker. We have recovered millions of dollars on behalf of our clients and continue to hold negligent financial institutions responsible for their wrongdoings. Contact our national investment fraud lawyers by calling (888) 840-1571, requesting a free consultation, or using the live chat option on our website.

Do I Need an Excessive Trading Attorney to Handle my Case?

Excessive trading for personal benefit is regulated by the Financial Industry Regulatory Authority (FINRA). In investment fraud cases, FINRA plays a neutral role and attempts to settle disputes between investors and brokers or brokerage firms. Even if you have some experience with the traditional judicial system, FINRA arbitration will be difficult, if not impossible, to handle independently. Having a seasoned investment fraud attorney on your side can mean the difference between obtaining the money you deserve and walking away empty handed. A knowledgeable attorney can help you with the following:

Why Should I Choose Erez Law?

Choosing the investment fraud attorney who will best represent your interests is one of the most important decisions you will make in your case. With some high-quality investment fraud firms representing wronged investors across the country, you want to focus on who has a record of results. At Erez Law, we pride ourselves on providing effective and compassionate legal services. Here are a few of the reasons we feel you should trust us with your case:

Get in touch with an investment fraud lawyer as soon as you can if you suspect your broker of churning. Excessive trading can lead to unnecessary fees and a drastic loss of income if it is not addressed. Call us today at (888) 840-1571 to arrange a free initial consultation and discuss your case today.

Signs of Churning

Even if you are knowledgeable about your finances and carefully follow your investments, the signs of churning can be difficult to catch. Most investors assume their financial adviser will act in their best interest, so looking for signs of churning does not even cross their minds. However, familiarizing yourself with actions that could indicate excessive trading is a useful exercise for any investor. Some of the red flags to look for include:

Of course, noticing a change in your account should not be immediate cause for alarm. There are alternate explanations for unusual transactions in your account, but they are always worth looking into. An investment fraud attorney can take an objective look at the facts of your case to determine whether your financial advisor is engaging in fraudulent behaviors.

Why is churning bad for my account?

Churning typically has a negative impact on your account for a couple of reasons. First, most brokerage firms require you to pay a commission fee based on the number of transactions a broker makes in your account. When unnecessary trades occur, you will be paying an unnecessary fee each time. Second, a broker who is excessively trading is not acting in your best interest. In fact, their actions are most likely intended to enhance their personal profit and will do little to benefit you, the investor. The broker can cash in on their commission and do nothing for you in the process. Not only are you not increasing your financial stability and receiving the service you paid for, but you are also worse off for your choice.

Why should I file a claim against my broker?

Many people who experience investment fraud assume their case will not be worth pursuing or that they will not be able to win against large financial institutions. This assumption could not be further from the truth. The attorneys at Erez Law can help you recover the money you lost, as well as any court and legal fees you may now owe. These damages could mean the difference between financial ruin and stability depending on the severity of your situation.

Penalties Surrounding Excessive Trading

Excessive trading is a criminal act, which is why we highly recommend you go after your broker with the full force of the law. After you begin arbitration proceedings, the FINRA reserves the right to punish brokerage firms and individual investors who engage in securities fraud, including churning. Sanctions concerning excessive trading may not have much personal benefit to you, but they might prevent your brokerage firm from acting irresponsibly in the future. If convicted, the broker or firm engaged in excessive trading could face the following:

When a broker intentionally betrays a client, they deserve to be prosecuted to the fullest extent of the law. Call an experienced investment fraud attorney for more information about churning and how to hold your financial advisor accountable.

Contact an Attorney

A negligent financial advisor should not have the power to damage your fiscal stability. Most investors have worked years for their money and deserve security when they invest their money. Contact the investment fraud attorneys at Erez Law for a free initial consultation by calling (888) 840-1571, completing a contact information sheet, or live-chatting with a professional on our website today.