As experienced investors know well, success does not always come easy. Many people rely on financial advisors or brokers for guidance with their portfolio. Unfortunately, in far too many cases, investors sustain serious financial losses due to broker negligence, portfolio mismanagement, or outright investment fraud. If you were the victim of securities fraud or broker misconduct, you may be eligible to recover monetary damages.
Galvin Legal, PLLC’s experienced investment fraud attorneys are committed to protecting the legal rights and financial interests of investors. We have helped many investment fraud victims nationwide recover losses. Even when an investor lives in Atlanta, Georgia, the claim must generally be filed through the Dispute Resolution division of FINRA. Investors are far more likely to recover their losses if they are represented by an attorney who is experienced in securities arbitration. If you think you may be a victim of investment fraud, please contact us today to set up your free investment fraud consultation. Galvin Legal, PLLC represents investors in every state across the nation.
Common Types of Investor Disputes
To prevail in an investment fraud/securities fraud claim, a plaintiff must be able to prove that their broker or brokerage firm is legally liable for their losses. You cannot recover compensation simply because you lost money. You must be able to prove that your advisor or broker did something wrong. Some notable examples include:
- Breach of Fiduciary Duty: RIAs have a professional duty to act in the interests of their clients. If your RIA breached their fiduciary duty, you may be entitled to financial compensation for any related losses.
- Unsuitable Investments: Under FINRA Rule 2111 (the suitability rule), brokers must make investment recommendations and must offer investment advice that is reasonably suitable for the individual needs of their clients.
- Unauthorized Trading: A broker must obtain permission before making transactions on behalf of an investor. With a non-discretionary brokerage account, permission is required for every individual trade. With a discretionary trading account, a broker must stick to the terms of the agreement.
- Overconcentration of Assets: When an investor’s assets are over concentrated in certain holdings, they are exposed to tremendous downside risks. Lack of diversification can be the basis of a viable investor losses claim.
- Excessive Trading: Brokers are prohibited from conducting an unreasonably high number of trades. Excessive trading (churning) generates huge commissions for unscrupulous brokers, but it causes major losses for investors.
- Material Misrepresentations: If you lost money because your financial advisor or brokerage firm misrepresented or omitted material facts related to a financial product or investment opportunity, you may be entitled to compensation for any related damages.
- Selling Away: Brokers are generally prohibited from selling securities that are not offered by their brokerage firm. In order to do so, a broker must receive pre-approval from their member firm, and their firm must agree to supervise the transaction. The failure to get this approval is known as ‘selling away’.
FINRA Arbitration in Atlanta, GA
With limited exceptions, most investor complaints must go before a FINRA arbitration panel. When you opened up a brokerage account, you most likely signed a customer agreement that contained a mandatory arbitration provision. This is an enforceable clause that requires investors to take any claim against their broker or brokerage firm through FINRA arbitration. If you have a securities fraud or investment fraud claim in Georgia, it is imperative that you seek guidance from an experienced Atlanta FINRA arbitration attorney.
Contact Our Atlanta Investment Fraud Lawyer Today
At Galvin Legal, PLLC, our Georgia securities fraud attorney is a strong advocate for investors. If you sustained illegitimate investment losses in Atlanta, we can help. To schedule a free, no obligation initial consultation, please call our law firm today at 1-888-637-5518.