FINRA Securities Arbitration
If your brokerage account has large unexplained losses or if there are many transactions in the account within a short period of time or after many years you are just “treading water,” you may be a victim of investor abuse.
Our firm represents investors nationwide in securities/investment-related disputes between and among investors and brokerage firms and brokers through the FINRA Dispute Resolution forum.
We work with our clients to assist them in recovering losses caused by stockbroker misconduct. Even the most seasoned investor can unwittingly become a victim of an unscrupulous broker and/or brokerage firm.
Common causes of action in the FINRA Arbitration claims we bring on behalf of our investor clients include:
- Churning – Churning occurs where a broker buys and sells stock for the purpose of generating commissions. Sometimes this misconduct is not so clear as it can occur through the use of confusing “mark-up” and “mark-down” transactions, where the true cost of the commission charged is not always made clear to the investor.
- Unauthorized Trading – Unauthorized Trading occurs where a broker and/or brokerage firm buy and sell investments for the customer’s account(s) without the customer’s consent.
- Unsuitability – Brokers and advisers are required to make investment recommendations that are appropriate for that specific customer based on the customer’s individual situation and investment goals. Unfortunately, we often see that recommended investments do not meet the investor’s profile, but are rather based on other factors such as additional compensation to brokers and brokerage firms, or promoting a firms’ “stock of the day.”
- Failure to Supervise – Brokerage firms and their supervisory personnel have a duty to supervise their broker’s accounts to ensure that the broker is properly handling the investor’s money. Similarly, compliance personnel at the brokerage firm must reasonably supervise with a view to preventing violations and FINRA’s rules.
- Negligence – Negligence occurs when a fiduciary fails to take proper care in fulfilling his or her duties. A broker has a fiduciary duty to properly invest your money according to your account objectives and investment experience.
- Selling Away – Selling away occurs when a broker sells his/her client securities or other products that are not overseen or offered by their brokerage firm. Selling away can often be found where the broker is promoting products such as private placements and certain real estate investments.