Did you receive bad investment advice from your financial advisor? Did your financial advisor misrepresent the risks associated with any recommended investments? If so, you may be a victim of investment fraud and you are not alone. Unfortunately, investment fraud remains a very serious problem in the United States. While the exact figure is difficult to pinpoint, the Securities Investor Protection Corporation (SIPC) estimates that American investors are defrauded out of $10 billion to $40 billion annually.
At Galvin Legal, PLLC, our top-rated investment fraud attorneys are committed to fighting for investors nationwide. We work aggressively to hold negligent and bad-acting brokerage firms and their financial advisors responsible for their misconduct. If you believe that you are a victim of investment fraud, please do not hesitate to contact us today for a free consultation with an investment fraud attorney.
How to Find Out If You Have a Valid Investment Fraud Claim
Investment fraud claims are notoriously complex. For investors, it can be extremely difficult to know whether or not they have a viable claim. The single biggest question that you need to have answered is this: Did my investments simply lose money or am I a victim of investment fraud?
There are inherent risks involved with investing. It is your financial advisor’s job to understand the risks associated with his or her recommendations and to fully disclose them to you. Brokerage firms and their financial advisors are held to high professional standards of conduct. If you suffered investment losses because your brokerage firm and financial advisor recommended unsuitable or fraudulent investments, then you may be able to recover your losses.
When deciding whether you should contact an investment fraud attorney, ask yourself:
- Did you suffer losses in an investment you were led to believe was less risky than it was?
- Did you tell your financial advisor that you wanted “conservative investments,” only to suffer losses more in line with aggressive or speculative investments?
- Did your financial advisor pressure you into investing in an investment that you did not understand?
- Did your financial advisor promise or guarantee returns or protection of your principal investment that turned out to be untrue?
- Were any of the investments recommended to you misrepresented in any way?
If the answer to any of these questions is “yes,” then you may be a victim of investment fraud. Request a free consultation with one of our investment fraud attorneys today and find out whether you might be able to recover your investment losses.
Common Investment Fraud Claims
Some common examples of investment fraud include:
- Misrepresentation or Omission of Material Information: Financial advisors must not misrepresent or omit material information about any investments they recommend.
- Unsuitable Investment: Not all investment opportunities are appropriate for all investors. Under FINRA rules, brokerage firms and registered representatives have a duty to only recommend investments that are suitable for the investor. If you suffered investment losses as a result of an unsuitable recommendation by your brokerage firm or financial advisor, then you should speak with one of our investment fraud attorneys.
- Over Concentration: Proper diversification is important to a well-managed investment portfolio. Unfortunately, many brokerage firms and financial advisors over concentrate investors in risky high commission paying investments that fail to properly diversify their portfolios. If your brokerage firm and financial advisor failed to properly diversify your portfolio, then you may be able to recover your investment losses.
- Churning: Churning occurs when a brokerage firm or financial advisor engages in excessive trading of securities with the primary purpose of generating commissions. If you think you may be a victim of churning, then you should speak with one of our investment fraud attorneys today.
- Unauthorized Trading: Unauthorized trading occurs when trades are placed in an investor’s account without express and detailed permission to do so or without written discretionary authority. Brokerage firms and financial advisors must obtain approval from the account owner for every transaction unless the account owner has granted written discretionary authority in advance. If you suffered investment losses as a result of unauthorized trading by your brokerage firm or financial advisor, then you may be able to recover those losses.
You Deserve Fair Compensation
If you are a victim of investment fraud, then you may be able to recover your investment losses. It is imperative that you are represented by a knowledgeable investment fraud attorney. The investment fraud attorneys at Galvin Legal, PLLC are prepared to help you recover your investment losses.
Contact Our Investment Fraud Lawyer Today
At Galvin Legal, PLLC, our experienced investment fraud attorneys are committed to protecting the legal rights and financial interests of investors. We have helped many investment fraud victims recover losses. If you think you may be a victim of investment fraud, please call us today or email us through our website to set up your free investment fraud consultation. Galvin Legal, PLLC represents investors in every state across the nation.