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Hire a reputable stock market losses lawyer at Patil Law after you’ve suffered from significant investment loss caused by your trusted stockbroker’s misconduct.
While it is true that even the most experienced investors take heavy hits, there are instances where these are not merely the result of normal market fluctuations, but rather the consequence of your broker’s wrongdoing.
The law firm’s founder, Chetan Patil, has over 15 years of extensive experience in diverse, complex financial transactions across the country. To date, Patil Law has recovered over $25 million on behalf of its clients. Feel free to browse through the firm’s impeccable track record.
Chetan specializes in litigations, trials, arbitrations, and appeals of complex securities, Financial Industry Regulatory Authority (FINRA) cases, and financial and business disputes, with an emphasis on securities, financial services, and financial regulatory law.
Why Choose Patil Law?
Patil Law’s clients will benefit from the depth and breadth of Chetan’s legal experience and judgment. He has handled and overseen over a thousand litigation and arbitration cases nationwide in federal and state courts and arbitration forums.
As a testament to their deep care and commitment, Chetan and his team of legal experts travel extensively for their clients all around the country.
They have represented defrauded investors, family trusts, family offices, public and private companies of all kinds, including banks and other financial institutions, broker-dealers, registered investment advisors, advisory firms, and securities brokers.
We operate on a contingency fee basis, which means we only get paid if we secure a favorable settlement or verdict for our clients. Call Patil Law now at (800) 950-6553 or send us a message through our secure and confidential online form. Our compassionate team of professionals is always on standby to provide urgent assistance.
Common Broker Tactics Which Result In Stock Market Losses
When you entrust your hard-earned money to a stockbroker, you have the right to expect that they will act in your best interests, providing sound advice and making informed decisions based on their expertise and knowledge of the market.
However, when a broker breaches this trust by engaging in fraudulent, negligent, or unauthorized activities, you may have grounds for legal action. The common forms of stockbroker misconduct are the following:
Breach of Fiduciary Duties: When you place your trust in a broker, you expect them to act in your best interests and provide sound advice based on your unique financial situation. However, some brokers prioritize their own gain over their clients’ well-being, breaching the sacred trust that forms the foundation of the broker-client relationship.
Churning or Excessive Trading: This occurs when a broker excessively trades in a client’s account to generate higher commissions for themselves, disregarding the client’s best interests and investment objectives.
Conversion of Funds (Misappropriation): This type of fraud occurs when a stockbroker misappropriates or illegally converts a client’s funds for their own personal use rather than investing them as intended.
Failure to Supervise: Brokerage firms have a responsibility to oversee their employees and ensure that they are acting in the best interests of their clients. Unfortunately, some firms neglect this crucial duty, allowing rogue brokers to engage in misconduct unchecked, leaving investors vulnerable to financial harm.
Forced Liquidation (Forced Selling): This happens when your investment positions have been sold without your consent, leaving you with substantial losses. This nightmare scenario, known as forced liquidation or forced selling, occurs when a broker sells off your investments without your permission, often to meet margin requirements or cover their own mistakes.
Margin Abuse: Stockbrokers may encourage clients to borrow money to invest (known as “buying on margin”) without fully explaining the risks involved. Misusing margin accounts or failing to disclose the associated risks is fraudulent conduct.
Misrepresentation or Omission: Stockbrokers are required to provide their clients with accurate and complete information about investments. Misrepresenting or omitting material facts to influence investment decisions is a form of fraud.
Over-concentration (Failure to Diversify): This happens when a broker invests a significant portion of a client’s portfolio in a single security, sector, or asset class, exposing the client to excessive risk. This can be a form of fraud if the broker fails to disclose the risks associated with over-concentration or if it goes against the client’s investment objectives and risk tolerance.
Ponzi Schemes: In this type of fraud, a stockbroker promises high returns to investors but uses money from new investors to pay off earlier investors, creating an unsustainable cycle that inevitably collapses.
Unauthorized Trading: When a broker makes trades in a client’s account without obtaining prior consent or authorization, it is considered unauthorized trading and is a clear violation of the client’s trust and confidence.
Unsuitable Investments: Brokers have a duty to recommend investments that align with their clients’ risk tolerance, financial goals, and investment objectives. Recommending unsuitable investments that are too risky or complex for a particular client is a form of fraud.
Every year, thousands of U.S. investors lose money to fraud and other securities law violations. At Patil Law, we have a proven track record of successfully representing clients who have fallen victim to stockbroker misconduct and negligence.
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Checking Your Stockbroker’s History For Misconduct and Complaints
If you want to check your stockbroker’s records for any history of misconduct or violations, you can search for their name or brokerage firm through FINRA’s website, BrokerCheck.
The portal tells you instantly whether a person or firm is registered, as required by law, to sell securities (stocks, bonds, mutual funds and more), offer investment advice or both.
BrokerCheck also gives you a snapshot of a broker’s employment history, regulatory actions, investment-related licensing information, arbitrations and complaints.
Uncovering a pattern of misconduct in your broker’s history can be a crucial piece of evidence in building a strong case against them or their firm.
By carefully reviewing the “Disclosure(s)” section of your broker’s record, you may find valuable information that supports your claim and demonstrates a consistent pattern of unethical or fraudulent behavior. This documentation can serve as compelling evidence for your stock market losses.
How Can You Prove Your Stockbroker’s Fault?
Proving that your stockbroker was at fault for your market losses requires meticulous documentation. Start by collecting all relevant files concerning the fraud in one secure place.
It’s best to prepare the following information:
- A contact sheet of your stockbroker’s name, mail and email addresses, telephone numbers, and website address, as well as their purported regulatory registration numbers;
- A timeline of events, which may span many years;
- The police report, if any;
- Your most recent credit report from all three credit reporting companies;
- Any evidence of fraud or deception;
- Logs of any phone conversations, with dates, names and phone numbers of any representatives with whom you spoke, and notes on what information they gave you; and
- Any other relevant documentation concerning the fraud.
Moreover, as soon as you’ve confirmed that your stockbroker has performed fraudulent activities, you can also report them directly to regulators. These include:
- The U.S. Securities and Exchange Commission: (800) SEC-0330 or file a complaint.
- National Association of Insurance Commissioners: Report fraud or file a complaint to your state commissioner.
Can A Lawyer Help Recover Your Stock Market Losses?
A skilled financial securities lawyer can help you take proactive steps to recoup your stock market losses and hold those responsible accountable for their actions.
Watching your hard-earned investments disappear due to your stockbroker’s misconduct can be an emotionally devastating experience. Such a betrayal can leave you feeling helpless and unsure of where to turn.
You don’t have to face this difficult situation alone. At Patil Law, we can comprehensively discuss your legal options so you can make an informed and empowered decision.
Filing a Lawsuit Against Your Stockbroker
Recovering assets lost to investment fraud can be challenging, but it’s important to remember that there are legitimate avenues available to explore. While the road may be difficult, individuals who have fallen victim to financial fraud have the right to seek justice and recoup their losses.
One potential course of action is to file a civil lawsuit. This process involves engaging the services of experienced attorneys who specialize in handling financial fraud cases. These legal professionals can provide invaluable guidance and counsel, helping clients through the legal system and determining the most appropriate remedies based on the specific circumstances of their case.
It’s important to approach the decision to file a civil lawsuit with a clear understanding of the potential challenges involved. Legal proceedings can be time-consuming and costly, and even in cases where a judgment is awarded in favor of the plaintiff, collecting on that judgment may present additional hurdles.
FINRA Arbitration
Aside from filing a civil lawsuit against your stockbroker, you may also choose to proceed with an arbitration claim or request mediation through the Financial Industry Regulatory Authority (FINRA).
The latter deals with a dispute involving the business activities of a brokerage firm or one of its brokers, and the parties seek monetary or other relief. Generally, to be considered for arbitration or mediation, the alleged act that gave rise to the claim must have taken place within the past six years.
However, if arbitrators see that an ongoing situation is causing the dispute, it can still be submitted. For instance, if a customer bought stock 10 years ago and there are claims of ongoing fraud from the time of purchase until six years before filing, it can still be accommodated.
Call A Trusted Stock Market Losses Lawyer Now
Consult with a trusted stock market losses lawyer at Patil Law. Remember, you have the right to expect honest, ethical, and transparent conduct from your stockbroker. Don’t let their misconduct go unchallenged.
Our finance fraud law firm is here to stand by your side every step of the way. Brokerage firms and their attorneys often have significant resources and legal expertise at their disposal, but we can help you level the playing field.
We have access to vast resources and a formidable network of legal and financial professionals who can build your case and fight for your interests. If you or a loved one has suffered significant losses in the stock market, call us now at (800) 950-6553 for a free consultation or send us a message through our secure and confidential online form.