Some financial professionals owe a fiduciary duty to their clients. All investment advisers are required to be fiduciaries by law, and stockbrokers may be fiduciaries depending on the circumstances – even though those same brokers must act in the client’s best interests (which is akin to a fiduciary duty). So what is a fiduciary duty …
On November 17, 2023, the Securities and Exchange Commission approved the Financial Industry Regulatory Authority’s request to loosen supervision standards for remote offices, thereby making it far easier for stockbrokers to sell inappropriate, if not outright fraudulent, investments to their clients. The vast majority of stockbrokers try to put their client’s interests first, offering advice …
When seeking professional financial guidance, there are two main options: brokers and investment advisors. There are several similarities, as both brokers and financial advisors offer professional financial advice. While these jobs may seem indistinguishable at first, in reality, there are significant fundamental differences between the two. Investors should be aware of these differences and their …
If you have suffered financial loss in your investment account, you may be wondering whether you can sue your broker or financial advisor. Yes, you can sue your broker or advisor. You have two options: filing an arbitration or filing a suit (though the latter is far rarer, as discussed below). Many investors retain financial …
At the risk of stating the painfully obvious, if something sounds too good to be true, it probably is. The latest evidence supporting that timeless gem is Robinhood’s promise of free stock trading available to anyone. It sounds great, except when Robinhood’s trading platform goes offline, leaving tens of millions of clients unable to buy, …
Robinhood has been in the news a lot again lately, and that news isn’t terribly favorable. Given that we represent investors, not firms, we fielded a lot of calls about Robinhood’s potential responsibility related to folks’ losses related to GameStop, AMC, Nokia, and Blackberry. To our great surprise, we concluded that, based on what we …
We’ve received dozens of calls from distressed investors, all with the same complaint: “I woke up today, saw that my stock is trading at a much higher price, but when I went to sell, I had a fraction of the shares I had yesterday. Help! My broker stole my stock!” There are certainly examples of …
Unfortunately, there are some disreputable securities brokers and financial advisor out there. Some engage in churning, a type of broker misconduct, which can have serious financial consequences for their clients. All investors need to know what churning is, how to spot it, and what to do about it if they suspect their broker or financial …
We often advise readers of this blog to act promptly if they suspect that their stockbroker mishandled their accounts or gave them unsuitable or misleading recommendations. Usually, we just post a general warning that potential filing deadlines can bar investment claims. But we thought it might be a good idea to explain a bit more …
The Most Notorious US Financial Scammers Every civilized society is dependent for its success on its citizens being able to trust one another. And most people actually do tend to trust one another. Why? Because they themselves are basically good, or at least reasonably honest, and believe they will be treated honestly by others – …
In February 2016, while Hugh Berkson was President of the Public Investors Arbitration Bar Association (PIABA), he researched and authored an extensive, groundbreaking report demonstrating that in approximately one out of three cases in which ripped-off investors win an arbitration award, the damages go unpaid, as does nearly $1 of every $4 awarded. His report …
There was a time when virtually 100% of our clients were from our home town and state of Cleveland, Ohio. If a brokerage firm customer was victimized in Cleveland or its environs by a sleazy or careless stockbroker, chances are we would be the investment fraud lawyers to whom the customer turned for help. Nationwide …
Stockbroker Christopher Tolmacs was found liable in FINRA arbitration for breach of fiduciary duty, gross negligence, willful wanton misconduct, conversion of funds, securities fraud and violation of the SEC Act of 1934. He was most recently employed with Triad Advisors, Harbinger Asset Management, LLC, and Harbinger Financial Group, Inc. His recommendation of unsuitable alternative investment …
FINRA has suspended Mount Pleasant, S.C. stockbroker Mark S. Perry from associating with any brokerage firm in any capacity for a period of eighteen months. Perry was most recently employed by Independent Financial Group. Before that, he was associated with Royal Alliance Associates and Cambridge Investment Research Advisors. Perry made unsuitable investment recommendations to four …
Beachwood and Independence, Ohio – Ryan Paugh is under FINRA investigation for violating NASD Rule 3040 and FINRA Rule 3040. Paugh has been associated with J.P. Morgan Chase Securities, and Chase Investment Services. He is being investigated for soliciting 5 individuals to participate in unregistered securities allegedly bearing high interest rates. The securities were for …
