When stockbrokers or investment advisors present to you an investment opportunity, they are required by state and federal law to provide you all the relevant facts necessary for you to make an informed decision about whether or not the investment is for you. Unfortunately, some brokers are unscrupulous and may intentionally misrepresent the facts or omit to provide you important information. Whether the broker intentionally misrepresented or omitted facts, or was simply negligent in not providing you correct information, you may have a claim against them for fraud and collect damages for the money you lost by relying on the information they did provide you.
Misrepresentations and Omission Examples
There are a number of different ways brokers may misrepresent facts or omit to provide their clients all the information they need to make informed decisions. Just a few examples are:
- Brokers may fail to inform their clients that an investment is unduly risky. If so, they have breached their duty to provide all the relevant facts the investor needs to make an informed investment decision.
- Brokers lie about the expected future performance of a particular investment.
- Brokers provide their clients what appears to be a glowing research report about the potential of an investment in a particular company knowing full well the company is headed for bankruptcy.
- Brokers take advantage of the elderly by not disclosing all the fees related to an investment like an annuity and clients later discover their retirement assets are frozen for a period of time that outlasts their life expectancy.
Signs your Broker Misrepresented or Omitted Relevant Facts
People sometimes question if they were defrauded by their stockbroker, or if they themselves were careless in making the losing investment. Here are some clues to look for.
- You told your broker you did want a high risk investment and thought your investment was safe. Instead, you have suffered extreme losses.
- You do your own research and find there are risks and fees to your investment that you were never told about.
- You receive the paperwork about your investment and discover it does not match what you were told by your broker.
- You hear in the media news about fraud surrounding your investment.
- Your broker won’t return your phone calls.
- You do not recognize some of the transactions on your account statement.
If you are an investor who believes your loss was due to misrepresentations or omissions by your stockbroker or investment advisor, contact us. Our securities attorneys are committed to focusing on investment abuse. We will review your case to determine if your broker or advisor misrepresented the investment to you or failed to reveal to you the facts necessary for you to make an informed decision. If so, we may pursue your claim for misrepresentation or omission of facts.
It can be difficult for an investor to know if or how he or she was misled. But our securities attorneys focus exclusively on investment abuse. We can tell you whether your advisor made inadequate disclosures or gave you false information.