When clients suffer losses as a result of inappropriate or dishonest financial advice, investors may hold financial advisors liable to recover losses through litigation or arbitration.
There are many ways in which financial professionals and stockbrokers can take advantage of investors and these professionals may be liable for compensating investors for losses incurred as a result of any inappropriate or fraudulent behavior.
Lanigan and Lanigan, P.L., represent investors in securities litigation and arbitration including cases involving brokers who receive significant revenue from the sale of annuities and other financial products to the detriment of usually a senior investor. Certain products are not considered suitable and should not be suggested to elder investors.
Other instances of securities and investment fraud include:
- A brokers’ failure to honor an investors’ orders because there is financial gain by the broker by not doing so.
- Fraudulent investments that pay returns to investors from the investment capital or funds invested by future additional investors which is known as a Ponzi scheme.
- Selling a financial product before it is registered with the Securities and Exchange Commission is illegal.
- High pressure sales tactics used to urge investors into unrealistic commitments whether over the phone or in-person.
- Selling securities, inappropriately soliciting, or completing transactions that a broker is not licensed to complete usually for financial gain coming from not having to split commission or wanting to take an investment from an investing client so that another broker will not gain financially.