Have your investments declined in value? In the current economic environment, you are not alone. Most Americans do not know that they have the right to competent investment advice and the right to hold financial institutions liable for rendering bad investment advice or worse, financial fraud.

Our attorneys are trained to be able to distinguish bad investment advice from a general market decline. We can advise you about your legal rights that could lead to a recovery of your hard earned nest egg. Individual cases typically are resolved in the securities arbitration forum as opposed to court. As a result, it is important that you hire an attorney with experience handling cases in securities arbitration. Our attorneys have the securities arbitration experience you need. For example, over the last several years, our attorneys have helped recover millions in damages on behalf of individual investors who lost their life savings due to faulty investment advice given to them by well-known brokerage firms.

Individual cases generally involve issues related to:

Visit our Investor Resource Center to learn more about these types of claims and others.

What Laws Exist That Protect Me Against Securities Fraud?

Following the Great Depression, the government set in place several securities laws to guarantee everyone the right to fair trade. These include:

Securities Act of 1933

This law requires investors to receive relevant and significant information about the securities offered for public sale. It also prohibits fraud, such as deceit and misrepresentations, in the sale of securities.

Securities Exchange Act of 1934

The Securities Exchange Act of 1934 created the Securities and Exchange Commission (SEC)–an organization that oversees, registers, and regulates brokerage firms, transfer agents, clearing agencies, and the nation’s securities self-regulatory organizations (SROs).

Investment Company Act and Investment Advisors Act of 1940

These acts regulate investment firms and advisors to minimize conflicts of interest that may arise and provide a level of transparency for investors.

Sarbanes-Oxley Act of 2002

This act is designed to protect investors from deceptive corporate accounting practices and enhance financial disclosures.

What are the Common Signs of Fraud or Misrepresentation?

It can be difficult to know for sure if you’re the victim of investment securities fraud, but there are several common signs to look out for. You may find that your broker no longer returns your phone calls, charges appear on your account statements that you didn’t authorize, you see significant drops in stock value in a short period of time, or you’re paying capital gains taxes while your account value is decreasing.

If you suspect your brokerage firm and/or investment advisor is taking advantage of you, call Doss Firm’s investment fraud attorneys at 855-534-4581 for a free case review.

What is the Legal Standard for Suitability?

To be a suitable investment, a firm’s investment strategy must be appropriate for the client’s objectives and means. It should fit in with their risk tolerance and their interests. The client must be in the right situation financially to take on the risk of the investment, or the investment will be considered unsuitable.

What is “buying on margin” and what are the risks associated with using it?

If you “buy on margin,” you’re purchasing stock by borrowing from a broker. The plus side to using a loan from your broker to buy stock is that you can buy more than you’d typically be able to. The downside is that you will accrue interest on your marginable securities, and it will continue to accrue unless you decide to make payments. You’ll need a major return on investment to cover the interest for a profitable investment.

Unauthorized Trading

Brokers and clients may agree that the broker has a certain level of autonomy to act on behalf of the client, but if that agreement is violated, the broker has violated unauthorized trading rules. For example, some investors may specify that their broker can make trades up to a certain monetary limit. If the broker executes a transaction above the agreed upon amount without the permission of their client, it could be considered an unauthorized trade.

Wall Street Investment Fraud Lawyer Blog – Investor Education

Wall Street Investment Fraud Lawyer Blog – Mortgage-Backed Securities

Types of Investment Firms We Litigate Against 

Ameriprise Financial Services, LPL Investment Holdings, LPL Financial, Uvest, Raymond James Financial Services Advisor Group, Zachs, FSC Securities Corp., Royal Alliance, SagePoint Financial, Commonwealth Financial Network, Cetera Financial Group, Financial Network Investment Corp., Multi-Financial Securities Corp., PrimeVest Financial Services Inc., Cambridge Investment Research Inc., Securities America, Advanced Equities, JP Morgan, Wells Fargo Advisors Financial Network, Northwestern Mutual, Lincoln Financial Network, National Planning Holdings, Invest Financial Corp., OptionsExpress, Investment Centers of America Inc., National Planning Corp., SII Investments, MetLife Broker-Dealer Group, MetLife Securities Inc., New England Securities Inc., Tower Square Securities,Walnut Street Securities, NFP Securities, H.D. Vest Financial Services, Axa Advisors, First Allied Securities, Securian Financial Services Inc., Genworth Financial Securities, Waddell & Reed, ING Financial Partners, Ladenburg Thalmann Financial Services Inc., Investacorp, Triad Advisors, Geneos Wealth Management, Next Financial Group, Merrill Lynch, Lincoln Investment Planning, PlanMember Securities Corp., VSR Financial Services, John Hancock Financial Network, Park Avenue Securities, Securities Service Network, Princor Financial Services, NYLife Securities, Woodbury Financial Services, Cadaret Grant & Co, United Planners Financial Services, Ameritas Investment Corp, Sigma Financial Corp., QA3 Financial Corp, ProEquities Inc., American Portfolios Financial Services, Investors Capital Corp, Capital Financial Group Inc./H. Beck Inc, Equity Services, Hornor Townsend & Kent, National Holdings Corp., National Securities Corp., vFinance Investments, Pacific West Financial Group, Kovack Securities, Robert Baird, Centaurus Financial, Independent Financial Group, Summit Brokerage Services, Prospera Financial Services, Edward Jones, Stifel Nicolaus, J.W. Cole Financial, Girard Securities, Ensemble Financial Services, Spire Investment Partners, Berthel Fisher and Company Financial Services, WRP Investments Inc., Wall Street Financial Group, Crown Capital Securities, CFD Investments, M Holdings Securities, LaSalle St. Securities, TFS Securities, Questar Capital, Harbour Investments, J.P. Turner, Coordinated Capital Securities, IMS Securities Inc./IMS Financial Advisors, Sammons Securities Co, The O.N. Equity Sales Co, Wachovia, Great American Advisors Inc., GBS Financial Corp.