Broker fraud and negligence generally falls into two categories (1) self-dealing and (2) failure to make suitable investment decisions for a customer. Claims involving broker misconduct are typically arbitrated before the Financial Industry Regulatory Authority (“FINRA”). The most common claims that we have seen involve misrepresentation and omissions, unsuitability, overconcentration, churning, failure to execute trades, failure to supervise, breach of promise/contract, and breach of fiduciary duty.
The rules, regulations and standards governing securities transactions are complicated. Consequently, a variety of abusive and unsuitable conduct may be occurring or may have occurred in your brokerage account without you having the slightest notion that wrongdoing may have taken place. Glancy Prongay & Murray’s investment fraud attorneys have substantial experience and knowledge representing investors who have lost money due to the negligence and misdeeds of their stockbrokers and financial advisors and the failure to supervise by their broker-dealers.