Securities lawyers specialize in the laws involving financial investments. They can help you file a claim with FINRA or sue a broker for negligence or fraud.
They can also vet corporate disclosures and other information before you invest your money. Here are five signs you should consider working with a securities attorney.
You Are Having Difficulties With Your Investments
Even if you are not the victim of fraud, the investments in your portfolio may be simply not working for you. Consult a securities attorney to determine whether the investments fit your portfolio and financial circumstances.
For example, if you find discrepancies in your account statements or notice that trades are being made without your permission, this is a red flag. You have the right to receive complete and accurate information about your investment portfolio. Additionally, your broker or advisor should be able to explain the investment strategy that they are employing. If they cannot or will not explain the process in detail, this could be a sign of fraudulent misrepresentation or negligence.
Also, beware of brokers who seek your business by claiming affiliation with your club, congregation, or other group you are a member of. This is a common tactic used in affinity fraud, and it can lead to losses for many investors. Our attorneys have experience with this fraudulent activity and can help you recover your money.
You Have Lost Money
Sadly, the financial industry is plagued by brokers and brokerage firms who violate investors’ trust and commit fraud to reap profits. This fraud can take many forms, including excessive trading (churning), unsuitable investments (non-traded REITs, oil and gas limited partnerships, annuities), and more.
If you have suffered significant losses from your advisor’s misdeeds, consulting with a securities attorney immediately is important. A securities attorney who is experienced in FINRA arbitration can help you recover your lost funds through the arbitration process that FINRA oversees.
FINRA arbitration is a dispute resolution process similar to a courtroom trial. You must have a securities attorney who understands this process, as well as the regulatory standards that your broker or advisor must comply with. An experienced attorney can also help you avoid the common pitfalls that lead to investment losses, such as denial or self-delusion. These dysfunctional coping methods can cause you to cling to unsuccessful investments in the hopes that they will rise again, which is almost always a recipe for more losses.
You Have Suspected Fraud
Investment fraud ruins investors’ confidence in the financial industry. Most people put their money into investments to reach different goals for themselves and their families. They rely on financial professionals to invest their funds according to their risk tolerance and objectives. But unscrupulous brokers and finance businesses exploit retail investors’ trust and lack of knowledge to commit crimes.
A clear sign of investment fraud is when your broker or advisor is not transparent about their actions. If your investment account experiences a decline in value and your advisor claims that the markets or industry declined, they are likely concealing their misconduct.
A lawyer specializing in securities law can investigate your losses and help you recover compensation from fraudulent activities. It is essential to keep detailed records of your investments, contact with your broker, financial transactions, and reports. The Silver Law Group’s lead attorney is a career securities and investment fraud attorney who has recovered many verdicts and settlements for investors and frequently represents whistleblowers who blow the whistle on financial firms for wrongdoing.
You Are Having Difficulties with Your Broker or Advisor
The vast majority of interactions between investors and investment professionals are positive, but the reality is that there are times when something goes wrong. When it does, the investor should consider consulting a securities attorney to evaluate the potential for fraud or negligence by the broker, advisor, or firm that handled the account.
One red flag to look for is the financial professional needing to return your calls or explain transactions on your account statement. These are both indicators that the broker may be putting their economic interests above yours by trying to maximize commissions on trades (also known as churning) and sales of unsuitable investments such as non-traded REITs, oil and gas limited partnerships, and annuities.
In addition, the financial advisor or broker should be held to fiduciary standards when creating a portfolio and recommending specific products. Unfortunately, many financial advisors and brokers fail to perform their duties with the care and skill required by the law and, thus, can be held liable for investment losses suffered by a client.
You Are Having Difficulties With Your Investments
Several factors may affect the value of an investment portfolio, including market volatility, business risk, foreign currency, and political risks. In addition, individuals should consider their risk tolerance. How would a large loss in their portfolio make them feel? Would it leave them grimly checking their accounts daily or selling all their assets in a panic?
Financial professionals should be able to clearly explain an investor’s portfolio options and why they believe these investments will provide a good return. They should also be able to explain how they determine which securities suit their clients’ investment goals, time horizons, and risk tolerance.
If your broker or advisor cannot clearly explain your investments, you should consult a securities attorney to see whether they have violated your rights. Remember that there are state and federal laws and rules issued by the FINRA designed to prevent investment fraud. You can file a claim to recover your losses if you have a legitimate complaint. For more information, contact a securities attorney specializing in investment loss recovery.
