Approach a Stockbroker Fraud Lawyer: Every month several people lose their hard-earned money because of stockbroker fraud. If you have been the victim of this type of crime, it is crucial to know when to approach a stockbroker fraud lawyer.
Read ahead to learn all the signs that you need legal help and what you can expect from a stockbroker fraud lawyer.
What Is a Stockbroker Fraud?
Your stockbroker should be legit. But if they are causing you to lose money, you need to think again.
Stockbroker fraud is defined as any illegal activity in buying or selling securities. This can include insider trading, misrepresenting security information, and more.
Stockbroker fraud can be very costly to investors, and it is vital to get help from a lawyer if you have been the victim of this type of crime.
Signs of Stockbroker Fraud and Scams
There are a few symptoms and signs that you may be a victim of stockbroker fraud. If you have recently lost a significant amount of money in the stock market, it is crucial to speak with a lawyer. Other signs that you may be the victim of fraud include:
- Promised unrealistic returns on your investment
- Pressured to invest in a specific stock
- Given false information about a stock
- Promised insider information about a stock.
Types of Stockbroker Fraud
You may be the victim of a few different types of stockbroker fraud. Here are some of the most common types.
- Over Concentration
Over concentration occurs when a broker invests a large portion of your portfolio in one stock or sector. This can be extremely risky and often leads to losses.
- Conversion of Funds
Conversion of funds occurs when a broker uses your money to buy shares for themselves or their friends.
Churning is a type of fraud where a broker frequently buys and sells stocks in your account to generate commissions. This practice can often lead to losses and is considered theft.
- Unauthorized Trading
Unauthorized trading is when a broker buys or sells stocks in your account without your knowledge or permission. This is a severe violation of trust and can lead to significant financial losses.
- Omission of Trading Facts
When a broker fails to provide crucial information about trade, they omit it. It may be pretty harmful, resulting in losses.
- Recommending Bad Investments
A broker may try to sell you a stock they know is not doing well to generate commissions. It is considered a form of fraud and can lead to significant financial losses.
What to Expect From a Stockbroker Fraud Lawyer
If you have been the victim of securities fraud, it is crucial to speak with a lawyer as soon as possible.
Review Your Case
A stockbroker fraud lawyer will be able to review your case and help you recover any losses that you may have incurred.
File a Claim
If you are a victim of such a scam, you may be able to file a claim with the Securities and Exchange Commission (SEC) or Financial Industry Regulatory Authority (FINRA).
If your case goes to court, a stockbroker fraud lawyer will be able to represent you and help you recover any damages that you may be entitled to.
How To Find a Stockbroker Lawyer?
It is crucial to speak with a lawyer as soon as possible in these types of stockbroker frauds and scams.
- Search Online
One of the proven ways to find a stockbroker fraud lawyer is to search online. It will allow you to see various lawyers who specialize in this area of law.
You can search your local yellow pages. This will provide you with a list of lawyers who are located near you.
- Read Reviews
When you are in search of a lawyer, read reviews. It will help you understand what other people have thought about the lawyer you are considering.
- Get a Referral
If you know someone who has been the victim of stockbroker fraud, they will be able to give you a referral. This can be an effective way to find someone you can trust.
- Ask State Bar Association
Another great way to find a stockbroker fraud lawyer is to ask your state bar association. They will give you a list of attorneys who specialize in this area of law and even guide you to find the ones suitable for your case.
Stockbroker fraud can be complex, and it is crucial to have an experienced lawyer on your side. If you think you may be the victim of fraud, contact the lawyer’s office today to schedule a consultation. They will review your case and help you understand your legal options.