Types of Investment Fraud Claims

There are a variety of legal causes of action we can assert on behalf of our clients, depending on the facts and circumstances of their claims. Below is a list of several common types of investment fraud claims. Please note, this list is not exhaustive and you should consult with counsel before you proceed with any claim you may have against your financial advisor.

Financial Advisor Negligence

Financial advisor negligence refers to conduct that falls below a standard of care established to protect investors against an unreasonable risk of harm.

Breach of Fiduciary Duty

Engaging in any type of fraud that benefits the financial advisors at the expense of the client is a breach of the fiduciary duty.

Misrepresentations and Omissions

Financial advisors are obligated to provide their clients with all of the material facts related to a specific investment.

Investment Fraud

Investment fraud is a broad term that describes any scheme or deception related to an investment that is designed to take your investment funds.

Unsuitability / Unsuitable Investments

FINRA’s suitability rule is based on a fundamental requirement that brokerage firms and their financial advisors deal fairly with their clients

Churning/Excessive Stock Trading

Churning/excessive trading is an illegal practice used by the financial advisor to earn commissions related to the trades.

Reverse Churning

Reverse churning occurs when a financial advisor places a client’s money into a fee-based advisory account to rake in management fee

Unauthorized Trading

Unauthorized trading involves any trades that a financial advisor makes for a client without obtaining their express permission.

Over Concentration Investment

Over concentration is investing an inappropriate portion of a client’s assets in one security, one sector, one industry or one type of investment product.

Failure to Supervise

When a financial advisor is negligent or fails to act in his client’s best interests, advisors’ firm may be liable for violating to properly supervise the advisors’ activities.

Variable Annuity Fraud

Variable annuities are extremely complicated investment products, which frequently leads to misrepresentations by financial advisors.

Private Placement

A private placement is a non-public offering that is not sold through a stock market, but through a private offering to a small number of accredited investors.

What is a Real Estate Investment Trust (REIT)

When investors pool their money to invest in a collection of properties or real estate assets.

Ponzi Schemes

A Ponzi scheme is a form of financial fraud that leads victims to believe that profits are coming from reliable investment decisions.

Elder Abuse

Over the past 20-years, states have enacted laws related to the abuse, neglect and financial exploitation of the vulnerable adults.

Still have questions?

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*In some litigated matters, we advance costs and expenses related to the litigation. In these situations, the advanced costs and expenses are recovered from the gross recovery of any verdict or settlement.

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