All investors must learn to accept the reality that they could lose money in stocks, bonds, and any other financial product. The market is notoriously unpredictable. At the same time, investors should never be held responsible for illegitimate losses.
Investment losses that happened as a direct result of financial advisor fraud, broker misconduct, or serious portfolio mismanagement should be borne by the responsible professional or their brokerage firm. If you or your loved one was the victim of securities fraud or investment fraud in Denver, you need to seek professional 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 Denver, Colorado, 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.
Most Common Broker Negligence and Investment Fraud Claims
In order to raise a successful investment fraud or securities fraud claim, a plaintiff must be able to prove that their broker did something wrong, and, therefore, they should bear liability for the losses. Some specific reasons why a broker or brokerage firm may be held liable through an investment fraud claim include:
- Unsuitable Investments: Under FINRA Rule 2111, stockbrokers and financial advisors must offer investment advice that is reasonably suitable for each investor. Individual transactions and broader investment strategies must be consistent with the needs and goals of the investor.
- Unauthorized Transactions: Stockbrokers and financial advisors must obtain pre-authorization before making any transactions on an investor’s brokerage account.
- Churning: Brokers cannot make trades simply to get more commissions and fees for themselves. This just transfer money from the investor to the brokerage firm.
- Failure to Diversify: If an investor’s assets are not properly diversified, they could be exposed to significant financial risks. Financial advisors that over concentrate investments may be held liable for negligence.
- Selling Away: FINRA Rule 3280 requires registered representatives to sell securities and financial products that are offered by their member firm. Brokerage firm are responsible for supervising these transactions. If a broker ‘sells away’ from the firm, investor lose a key source of protection. Proper due diligence may not occur.
- Lack of Supervision: FINRA broker-dealers are responsible for the conduct of all investment advisors, securities brokers, and other associated persons that they employ. Brokerage firms must put strong supervisory systems in place to make sure that customers (the investors) are protected from potential misconduct.
Investor Complaint in Denver, CO: The FINRA Arbitration Process
With securities fraud and investment fraud cases, most investors are prevented from filing ordinary lawsuits. This is because the overwhelming majority of investor losses claims are covered by contracts that include mandatory arbitration provisions. If you lost money due to financial advisor misconduct in Colorado, you need to understand how to bring an effective, persuasive FINRA arbitration claim. An experienced Denver FINRA arbitration lawyer can help you build a strong case and present it before the panel.
Contact Our Denver Investment Fraud Lawyer Today
At Galvin Legal, PLLC, we fight aggressively to protect the legal rights of investors in Colorado. Our Denver securities fraud lawyer has the skills and experience needed to hold negligent financial advisors and brokerage firms accountable. To arrange a free case evaluation, please call us today at 1-888-637-5518 or reach out to us online.