Need An Investment Fraud Lawyer

Americans have a tendency to invest in stocks. Gallup Poll data shows that approximately 55 percent of American residents have individual stocks, mutual funds, equities, or both in an IRA and 401(k). Although stockbrokers are very popular, Americans have mixed feelings about them. While they see them as trained professionals, they are worried about fraud, theft, or corrupt activity. According to the average business lawyer they may be right. If you need a trusted lawyer to help secure or lose your investment, you can find experienced lawyers on

A Growing Trend

It shocked us all to see famous stockbrokers, investment advisors, and financiers being paraded to jail after ripping off people’s life savings. This raises the obvious question: is our money safe? We need to look at the different duties that stockbrokers have to their customers to find out how much protection they offer.

Legal Responsibilities

You have probably heard the expression “fiduciary accountability” or “fiduciary duties.” Fiduciary is a person who manages funds for the benefit or another. A beneficiary, as the name suggests, is a financial representative. In this type relationship, the fiduciary has to look out for the best interests of the beneficiary. This is his fiduciary duty. The relationship between an investor, or at least not in its entirety, and his stockbroker is not always mutual.

A Series 7-licensed regular broker is commonly called a “registered Representative”. Registered investment advisers on the other hand are fiduciaries. These advisors are responsible for your financial future planning and not trading securities. However, stockbrokers may still be subject to criminal prosecutions or be sued for misconduct. This is simply because these cases tend not to be as straightforward as those involving broker with fiduciary obligations.

What is Fraud and How Can You Avoid It?

Broker fraud refers to any misconduct by trusted financial advisors, such as lying or deceitful, theft, poor investments, negligence and general incompetence. Churning happens when a registered representative engages excessive trading for his own benefit and not that of the client.

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