INDIVIDUAL INVESTORS
Investing contains inherent risk and losses may occur. Some losses, however, may be the result of illegal, unethical, or
negligent practices on the part of your broker or investment advisor. Contact us by e-mail or at (800) 719-4889 if you are in
need of legal advice. This may be a good time to discuss the remedies that may be available to you if your investment losses
are due to such fraud or other misconduct.
We invite you to contact us if you are looking for Boston business lawyers. We strongly encourage you to speak to an
experienced attorney about your business formation issues. You can contact us if you are looking for a Boston,
Massachusetts business lawyer by visiting our current website at SMLawGroup.com.
Generally, brokers do not owe the same duties to their clients as investment advisors. On the other hand, in certain cases
they may have powers of attorney over accounts, giving them the discretion to act on behalf of their clients. In these
instances, brokers have a fiduciary duty to act in their clients' best interests and are held to a higher legal standard for their
conduct.
Broker misconduct, with or without discretion, can occur in the following ways:
Investment advisors, brokers, securities broker-dealers and brokerage firms may be held liable for losses caused by the
activities listed above. If you suspect that your broker or investment advisor has engaged in one of the above activities you
should consult with a skilled and knowledgeable attorney.
We have extensive experience handling securities matters and representing private investors. We can also present the
investor's case effectively before the NASD, NYSE, or any other tribunal.
Contact us today by e-mail or at (800) 719-4889 for more information on individual investment fraud matters. We can also
help you if you are looking for a Boston business lawyer.
Investing contains inherent risk and losses may occur. Some losses, however, may be the result of illegal, unethical, or
negligent practices on the part of your broker or investment advisor. Contact us by e-mail or at (800) 719-4889 if you are in
need of legal advice. This may be a good time to discuss the remedies that may be available to you if your investment losses
are due to such fraud or other misconduct.
We invite you to contact us if you are looking for Boston business lawyers. We strongly encourage you to speak to an
experienced attorney about your business formation issues. You can contact us if you are looking for a Boston,
Massachusetts business lawyer by visiting our current website at SMLawGroup.com.
Generally, brokers do not owe the same duties to their clients as investment advisors. On the other hand, in certain cases
they may have powers of attorney over accounts, giving them the discretion to act on behalf of their clients. In these
instances, brokers have a fiduciary duty to act in their clients' best interests and are held to a higher legal standard for their
conduct.
Broker misconduct, with or without discretion, can occur in the following ways:
- Churning, which essentially means the client is unable to make any money on the transactions because brokerage
commissions are too high. Churning consists of three elements:
- Control of the account by the broker, either explicit or de facto;
- Excessive trading in light of the client's investment objectives; and
- Intent on the part of the broker.
- Failure to diversify: failing to sufficiently diversify a client's account to control risk and avoid excessive loss, whether
fraudulently or negligently. - Misrepresentation & omissions: misrepresenting or omitting the true characteristics of certain investments to the
clients. - Unauthorized Trading: buying and selling securities without first receiving permission from the client to do so.
- Unsuitability: recommending investments that are not suitable for a particular client's set of circumstances, including
age, family situation, and financial assets. - Failure to follow instructions regarding the purchase or sale of stock.
- High-pressure sales practices: “boiler room tactics” that involve pressuring a client to buy or sell a particular security.
- Stock manipulation: manipulating stock prices for personal or corporate gain in violation of state and federal law.
- Variable Annuities Fraud, including recommending unsuitable annuities to increase the broker's commissions,
inappropriate exchange of contracts, not completely explaining the long-term investment characteristics of annuities, or
failing to completely advise investors about the associated risks. - Criminal or fraudulent activity, including theft, forgery, or embezzlement.
- Negligence: failing to meet the proper standard of care with regard to the account.
Investment advisors, brokers, securities broker-dealers and brokerage firms may be held liable for losses caused by the
activities listed above. If you suspect that your broker or investment advisor has engaged in one of the above activities you
should consult with a skilled and knowledgeable attorney.
We have extensive experience handling securities matters and representing private investors. We can also present the
investor's case effectively before the NASD, NYSE, or any other tribunal.
Contact us today by e-mail or at (800) 719-4889 for more information on individual investment fraud matters. We can also
help you if you are looking for a Boston business lawyer.
Advertising. In accordance with rules established by the Supreme Judicial Court of Massachusetts. This web site must be labeled
"advertising." It is designed to provide general information for clients and friends of the firm and should not be construed as legal advice, or
legal opinion on any specific facts or circumstances. This web site is designed for general information only. Unless and until you enter into a
formal agreement with Attorney Mwangi, he is not your attorney and you do not have an attorney-client relationship with him. All Rights
Reserved.
"advertising." It is designed to provide general information for clients and friends of the firm and should not be construed as legal advice, or
legal opinion on any specific facts or circumstances. This web site is designed for general information only. Unless and until you enter into a
formal agreement with Attorney Mwangi, he is not your attorney and you do not have an attorney-client relationship with him. All Rights
Reserved.
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