As an investor, you accept certain financial risks when you buy stocks and other financial products. However, you should not be held responsible for fraud or a financial advisor’s negligence. Investment losses due to fraud, negligence, or serious professional misconduct are legally actionable. As securities fraud claims are extremely complex, it is crucial that investors seek qualified representation.
Galvin Legal, PLLC’s experienced Charlotte securities fraud and 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 Charlotte, North Carolina, 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.
Examples of Investment Fraud and Broker Misconduct
To recover financial compensation for investment losses, a plaintiff must raise specific cause(s) of action against the defendant. It is not sufficient to prove that you sustained losses. You must also prove that your financial advisor or brokerage firm should bear liability for those losses. Some common causes of action in investment and securities fraud cases include:
- Breach of Fiduciary Duty: Registered investment advisors (RIAs) owe fiduciary duties to their clients. These advisors must avoid conflicts of interests and must always act in the best interests of their customers.
- Unsuitable Investments: FINRA Rule 2111 requires brokers to offer suitable investment advice. Investment guidance must be appropriate for each individual investor’s unique needs.
- Material Misrepresentations: If you invested money because a broker or brokerage firm misrepresented material information, you may be able to recover for your losses.
- Failure to Diversify a Portfolio: Portfolios should always be completely structured. The overconcentration of assets puts innocent investors at serious risk.
- Broker Churning: Financial professionals cannot execute or recommend trades without a reasonable basis. Excessive trading produces commissions for brokers, but losses for investors.
- Unauthorized Trading: Whether you have a discretionary account or non-discretionary account, your stockbroker needs the proper authorization before making transactions.
- Failure to Supervise: All FINRA member firms are responsible for overseeing the conduct of individual representatives. A brokerage firm may be financially liable for the bad actions of a financial advisor.
Investor Complaints in Charlotte, NC: Dispute Resolution through FINRA
Most investor disputes are resolved through the FINRA arbitration process. Even when you bring your claim in Charlotte, NC, you typically still must take it before a securities arbitration panel. There are complex rules and procedures that will govern your dispute. It is imperative that you are represented by a Charlotte investment fraud lawyer who has the skills and experience required to effectively handle a FINRA arbitration claim.
Contact Our Charlotte, NC Securities Fraud Lawyer Today
At Galvin Legal, PLLC, we are committed to protecting the legal rights and financial interests of investors. If you sustained losses due to broker fraud or broker negligence in Charlotte, NC, please do not hesitate to contact our law firm today at 1-888-637-5518 for a no-fee, no-obligation review of your case.