JOHN LAWRENCE ALLEN, ESQ
For Securities Fraud & Broker Fraud Call:
An investment broker must recommend investments based on a client’s individual financial needs. However, brokers may be pressured by their firms to push a certain stock, or may have a personal interest in a corporation or other investment opportunity. A broker is guilty of unsuitability if they advise their client to invest in stocks that they know are outside the client’s risk tolerance or are not suited to meet the client’s...
Broker Fraud & Unauthorized Trading
Broker Fraud – Unauthorized Trading
An investment broker must obtain a client’s permission before engaging in a stock transaction. If a broker fails to obtain permission before buying or selling stock, or acts against a client’s express instructions, a broker will be guilty of unauthorized trading.
Prior to placing an order to buy or sell securities for an investor a broker or advisor must obtain the express permission of that investor. If not,...
Broker Fraud – Stock Market Losses
Not all stock market losses are caused by broker fraud. Usually, if a company’s projected growth does not materialize, this will drive down its stock price. Other events that commonly drive down stock prices are higher interest rates and defective products that cause severe injuries and trigger costly recalls.
You are going to lose money if you invest in stocks. Sooner or later, its bound to happen. If fact, it...
Broker Fraud & SEC Guidelines
Broker Fraud – SEC Guidelines
The SEC has enacted guidelines to protect investors against broker fraud. The guidelines were developed to ensure that clients receive accurate and complete investment information from their brokers, while protecting the broker’s ability to fully serve the client. Key regulations require that brokers:Buy and sell stocks within the client’s appropriate risk level. Receive the client’s permission before making an investment. Follow client orders regarding when to buy or...
Broker Fraud & Registration Violation
Broker Fraud – Registration Violation
Both federal and state laws are strict on who must be registered to sell securities. Registration Violations are strictly enforced and the penalties can be severe. Securities offered or sold to the public must be registered under state laws and/or with the Securities and Exchange Commission, unless the securities are covered by an available registration exemption.
All firms that sell registered securities to the public must be...