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Hire a reputable and trusted stockbroker fraud lawyer at Patil Law if you or a loved one has suffered from your stockbroker’s fraudulent conduct. An attorney who represents you during these complex proceedings can provide experience, direction and advice.
Brokerage firms have a ruthless legal team to defend their cases, so it’s best to hire one on your side who’s equally eager to fight for your cause. The law firm’s founder, Chetan Patil, has over 15 years of extensive experience in diverse, complex disputes and transactions across the country.
To date, Patil Law has recovered over $25 million on behalf of its clients. One of the most notable lawsuits involved a $5 million settlement for clients who were improperly sold multiple illiquid Real Estate Investment Trusts (REITs) and who were victims of forgery. 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. With this type of arrangement, 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.
What is Stockbroker Fraud?
Every year, thousands of U.S. investors lose money to fraud and other securities law violations. In particular, stockbroker fraud or securities fraud is the misrepresentation or omission of information to induce investors into trading securities.
It occurs when a broker or advisor engages in unethical, deceptive, or illegal practices that cause financial harm to their clients. These actions essentially breach the trust placed in them and violate their fiduciary duty.
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Common Types Of Stockbroker Fraud
Stockbroker fraud can take many forms, and it’s essential for investors to be aware of the common types to know when they should seek legal advice:
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: 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.
Insider Trading: When a stockbroker uses non-public information to make investment decisions or shares such information with others for personal gain, it is considered insider trading and is illegal.
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.
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.
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.
If you suspect that you have been a victim of stockbroker fraud, it’s crucial to seek legal guidance from experienced professionals. At Patil Law, we have a deep understanding of the complex laws and regulations surrounding the different types of investment fraud and are committed to fighting for the rights of our clients.
How Can You Prove Stockbroker Fraud?
Proving stockbroker fraud 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.
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 which 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 Stockbroker Fraud Lawyer Now
Consult with a reputable stockbroker fraud lawyer at Patil Law. Remember, you have the right to expect honest, ethical, and transparent conduct from your stockbroker. If you believe that your trust has been violated and you have suffered financial harm as a result, do not hesitate to take action.
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. You can trust that we’ll stop at nothing to recover your losses and damages. If you or a loved one needs immediate access to a stockbroker fraud attorney, call us now at (800) 950-6553 for a free consultation, or send us a message through our secure and confidential online form.