California Securities & Stockbroker Fraud Lawyers
FINRA Arbitrations and Securities or Stockbroker Fraud
Financial advisors, stockbrokers, and investment managers and advisors are bound to certain ethical codes duties. As trusted financial services professionals, their conduct is overseen and monitored by the Financial Industry Regulatory Agency (FINRA). FINRA prescribes and maintains rules and regulations that stockbrokers and other financial professionals must follow by law. For example, FINRA Rule 2111 states that any brokerage firm or affiliated individual must “have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member of associated person to ascertain the customer’s investment profile” (emphasis added).
Yet despite this, many financial professionals attempt to skirt these rules, to the detriment of elder and senior victims of securities fraud. Seniors fall prey to scams and schemes because they trust investment advisors to keep the seniors’ best interests at heart. While there certainly exist trusted and ethical financial advisors, it is important to be aware of those who privilege profit over the suitability of their clients’ investments.
The California securities and stockholder fraud lawyers at The Evans Law Firm handle FINRA securities arbitrations on behalf of senior victims of securities abuse and fraudulent sales of securities – including variable annuities.
Some of the following claims examples constitute fraudulent investor practices:
- unsuitable or inappropriate advice or recommendations;
- churning, or frequent turnover of investments in order to increase commission;
- omissions and/or misrepresentation;
- over-concentration and/or failure to diversify;
- financial abuse of elders by selling of unsuitable securities, including variable and other deferred annuities;
- failure to give appropriate advice with respect to employee stock options;
- pension fund fraud; and/or
- mismanagement (negligence or failure to act in accordance with the standard of care), negligent supervision by brokerage firms, and brokerage malpractice.
As demonstrated by the arbitrations and litigation brought by the Evans Law Firm, it is essential to regularly monitor your investments and ensure that your finances are in order. If possible, retain independent advice, and be on the look-out for anything suspicious. If you or a loved one have suffered a loss of income or savings from fraudulent investments and the stock market, you may be eligible to bring a lawsuit or enter arbitration.
For a free and confidential consultation regarding FINRA/NASD Securities Arbitration Cases or other instances of financial elder abuse, contact the California securities and stockbroker fraud lawyers at email@example.com or call 415-441-8669.