Tampa Securities Litigation Lawyer
Investors and stock brokers have a special relationship that is built around fiduciary duty, or the duty to act in the investor’s financial best interests. The broker must act in good faith and with the investor’s best interests in mind at all times, even if that means that the broker must sacrifice his or her own financial interests. Here at Barbas, Nuñez, Sanders, Butler & Hovsepian, our Tampa securities litigation lawyers hold stock brokers accountable for violations of their fiduciary duties, or their downright fraudulent practices that cost our clients considerable damages. We also represent brokers who have been wrongly accused of excessive trading, fraud, and other violations of fiduciary duty.
Examples of Stock Broker Violations That Can Lead to Claims
Stock brokers have a fiduciary duty to their investors, and are also bound by law to make investments legally and in good faith. Below are examples of when the law is broken, and investors have the right to file a lawsuit seeking compensation for their damages. On the other hand, brokers who have been wrongly accused of such misdoings need experienced financial assistance immediately to avoid wrongful penalization.
- Excessive Trading—Churning is the process of excessively buying and selling securities for the purpose of generating commission instead of carrying out the investor’s goals.
- Unsuitable Investments—The broker is making investments that do not line up with the investor’s goals. For example, if the broker made a high risk investment right before the investor was set to retire, the broker could be found negligent.
- Unauthorized Trading—If the broker made a trade without the authorization or permission of the client, which is unlawful under FINRA Rule 210, they may be liable for unauthorized trading.
- Misrepresentation—Under § 240.10b-5, fraud is to make an untrue statement of a material fact or to omit to state a material fact, according to Cornell Law. One of the most common types of securities fraud is misrepresentation, which occurs when the broker makes a false statement about a transaction.
- Omission—Similar to misrepresentation, an omission is another form of securities fraud and occurs when a stock broker omits important information about a transaction.
- Other Forms of Fraud—Under 18 U.S. Code § 1348, it is illegal to defraud any person or to obtain any money by fraudulent pretenses, representations, or promises regarding the sale or purchase of commodities. Offenders face up to 25 years in prison, but investors are often left financially ruined even when fraudulent stock brokers are held accountable by state or federal authorities. The only way that they can be made whole is by filing a claim for their damages.
Contact Our Experienced Tampa Securities Litigation Team Today
U.S. securities is a highly specialized area of law, and one that is in constant change. As such, you need an attorney that is up to date on all areas of securities litigation, and has experience resolving high-asset conflicts between investors and stock brokers. Whether you have suffered financial damage due to a broker, or a disgruntled investor is simply trying to get back at you for an unfortunate trade, the Tampa lawyers at Barbas, Nuñez, Sanders, Butler & Hovsepian can provide the legal assistance you need. Call us at 813-279-2686 to schedule your free consultation today.
