Securities and Financial Fraud
Investor Fraud Perpetrated By Stock Brokers Or Inverstment Advisors
We represent investors who have been the victims of stock and securities fraud perpetrated by investment advisors and stock brokers. Investors typically sign arbitration agreements which make these cases the subject of FINRA (Financial Industry Regulatory Authority) arbitrations. We at Heimanson & Wolf understand the serious financial and economic losses that can result from investment fraud and we advocate on behalf of individual investors in FINRA arbitrations. This fraud can come in various forms:
Churning: Excessive trading or turning of an account by an investment advisor or broker to generate broker commissions.
Improper Margin Trading: A broker who places an investor on margin (a loan from the brokerage) to add funds to a portfolio to invest in securities which increases the risk of the portfolio.
Unauthorized Trading: A broker who does not have authority or written discretion to trade on an account, executes trades without an investor’s approval.
Ponzi Scheme: Brokers who pay returns to investors from money invested by subsequent investors like the scheme of Bernie Madoff.
Breach of fiduciary duty: Investment advisors who handle managed accounts provide financial advice to investors; they have discretionary authority to trade on behalf of investors and are fiduciaries to their investors.
Unsuitable investments: Brokers or investment advisors many times recommend investments that are unsuitable to the investors; these often occur when elderly investors are convinced to purchase annuities or life insurance policies that pay large up front commissions to brokers.
These financial losses can be significant and devastating for investors. Investment fraud can deprive investors of their life savings. Oftentimes investors feel betrayed by brokers they trusted. We at Heimanson & Wolf, LLP seek to ensure that investors are properly compensated for the losses they have incurred because of stock broker fraud. We have prevailed in cases and FINRA arbitrations against large investment firms including Merrill Lynch, LPL Financial, and Crowell Weedon.