INVESTOR REPRESENTATION

If you believe you are a victim of broker misconduct, call me today!

You have legal rights that are meant to protect you as an investor. The following describes some of the most common examples of situations where a broker may have violated your rights. It is not intended as a complete list. Any one of the following conditions could signal stockbroker misconduct:

• Guaranteed Results: your stockbroker misrepresented that there was little or no risk of your losing money on recommended investments
• Unsuitable Recommendations: for example, you told your stockbroker that you need income from your investments and your stockbroker recommended something else that did not meet your needs
• Illiquidity: you cannot sell securities recommended by your stockbroker
• Overconcentration: your stockbroker put too much of your savings in a single security or sector of the economy
• Volatility: the month-to-month value of the investments recommended by your stockbroker go up and down like a see-saw
• Unauthorized Trades: your stockbroker made purchases or sales of securities in your account without asking you first
• Excessive Trades: frequent purchases and sales of securities are directed by your stockbroker
• Abuse of Margin: on the advice of your stockbroker, you borrowed money from the brokerage company and lost your savings on a margin call

If you have lost significant savings because of any of these conditions or believe you are the victim of any other misconduct by your financial advisor, I will provide you with a free consultation to determine if you might be legally entitled to recover your financial losses. Please contact me at (561) 463-2799 or pspett@spettlaw.com.

What is FINRA Securities Arbitration?

Most claims between investors and their investment advisors must be commenced in securities arbitration proceedings. If you have a brokerage account, you probably signed some forms at the time you opened it. Almost always, one or more of those forms had a provision saying that arbitration is your only remedy for claims of misconduct by your stockbroker or brokerage firm. On the forms you signed the likely place where your arbitration claims are required to be filed is the dispute resolution section of the Financial Industry Regulatory Authority (FINRA).

FINRA arbitration is different from suing someone in court. It is a private proceeding usually presented to a panel of three arbitrators and is intended to be faster and more efficient than a public court case made before a judge or jury. Prior to the presentation of the case at a FINRA arbitration hearing, motions and discovery of evidence are limited. The decision at the conclusion of a FINRA arbitration proceeding is final and can rarely be appealed. If you believe you are a victim of broker misconduct, your best course of action is to consult with an attorney who is experienced with the FINRA arbitration process and financial industry.