As all experienced investors understand, the market is uncertain. By putting your money into stocks or any other financial product, you are accepting certain risks that simply cannot be avoided. At the same time, you are not responsible for all investment losses. Investors should not be on the hook for investment losses that occur because of negligence or illegal conduct on the part of a financial professional or brokerage firm. If you were the victim of any type of securities fraud or investment fraud, you need to seek legal guidance.
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 Columbus, Ohio, 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.
Notable Examples of Investor Disputes
Investor disputes come in a wide range of different forms. According to the Financial Industry Regulatory Authority, some of the most common specific reasons why claims are filed include:
- Breach of Fiduciary Duty: While not true of all financial professionals, registered investment advisors have fiduciary responsibilities to their clients. This means that they must always act in furtherance of their client’s interests, even if that means putting their own personal financial interests on the back burner.
- Lack of Suitability: Stockbrokers must comply with FINRA’s suitability rule (Rule 2111). Under this rule, brokers must have a reasonable basis for all investment recommendations and investment advice. If you lost money because your financial advisor pushed you into an unsuitable investment, you could have a claim.
- Overconcentration Claims: Most investors are familiar with the age-old adage: Don’t put all of your eggs in one basket. Lack of diversification is a form of portfolio mismanagement. If you lost money due to negligent overconcentration of investments, you may be entitled to recover compensation.
- Churning/Excessive Trading: Another common investment fraud claim that can be brought under FINRA Rule 2111 is ‘excessive trading’. Also known as churning, this occurs when brokers make trades primarily to put additional commissions and fees into their own pockets.
- Fraud/Misrepresentation: If a broker or broker-dealer materially misrepresents the terms, risks, or nature of an investment, they may be held legally liable for fraud. If you believe that misrepresentations were made to you or your loved one, you should speak to a Columbus, OH investment fraud attorney right away.
- Failure to Supervise: Broker-dealers are responsible for overseeing the conduct of all related registered representatives and associated persons. FINRA member firms must ensure that they adequately supervise individuals representatives so that their customers are effectively protected.
What You Need to Know About FINRA Arbitration in Columbus, OH
FINRA arbitration is a common method of dispute resolution in investment fraud and securities fraud claims. In fact, with very few exceptions, investors are required to resolve their complaints against their financial advisor or broker-dealer through arbitration. If you are an investor in Franklin County, Ohio, and you sustained serious investment losses, it is crucial that you seek support from an experienced Columbus FINRA arbitration attorney.
Contact Our Columbus Investment Fraud Lawyer Today
At Galvin Legal, PLLC, our legal team is proud to be strong advocates for investors all over Central Ohio. Our Columbus investment fraud attorneys have deep experience handling FINRA arbitration claims and complex securities litigation cases. To get a free, fully confidential review of your case, please give us a call at 1-888-637-5518. We look forward to fighting for your rights.