Ohio Stockbroker Misconduct Attorneys

Stockbroker Misconduct

Most claims by investors against their stockbrokers, financial planners, or investment advisors fall into one of the following categories: misrepresentation, excessive trading (sometimes called "churning"), misappropriation, and inappropriate or unauthorized investments.

Misrepresentation covers false statements or omissions of critical investment information. False statements often include guaranties, price predictions, or special information regarding a particular investment. Additionally, in some circumstances, a misrepresentation rises to the level of fraud.

Excessive trading, or churning, happens when a broker is buying and selling stocks to generate commissions for himself and his firm. If an investor sees aggressive trades, in the absence of any meaningful price change of the securities being traded, there is high probability that the account is being "churned."

Misappropriation arises where the broker fails to report a particular transaction to his employer. These actions are sometimes referred to as "selling away." When considering claims arising out of this misconduct, it is important to remember that the brokerage firm may be held responsible, even where it is unaware of the specific transaction or the particular customer.

Inappropriate/Unauthorized investments. These claims are discovered when an investor receives brokerage account statements reflecting trades that were never discussed or authorized (or, more often, trades that were executed in excess of the agreed purchase price or number of shares to be purchased). Sadly, many of the victims of this type of misconduct are elderly individuals who have lost their retirement assets.

As a result of the collapse of Enron, WorldCom and many other companies, there has been a tremendous increase in the number and types of claims by investors and small businesses against large companies, particularly financial institutions, as well as increases in other kinds of business litigation.

Case Examples

We have represented individuals, medical and legal professionals and others who lost large sums from their investment portfolio when their stockbrokers invested their assets in speculative, high-tech stocks and failed to diversify their holdings.

We have represented individual stockholders who lost substantial sums when energy companies manipulated the price of their stock.

Consultation

We will meet with you to explain your legal rights and make suggestions for immediate action on your claim. Naturally, you are under no obligation to retain us after the initial conference.

For more information about protecting your legal rights or, your stockbroker misconduct claim, please call or e-mail one of our stockbroker misconduct attorneys. We promise to respond promptly.