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Stock Broker Malpractice

Stock Broker Malpractice

Call us for a free no cost, no obligation consultation at 303-762-9500 in Metro Denver or toll free at 800-878-7888.  We have handled hundreds of these type of cases and recovered tens of millions of dollars for our clients.  We are not a high volume law firm.  We take each case very seriously and will seek every penny of losses that you are entitled to.

People often believe that there is nothing they can do about losses in their investment portfolios.  People delay their retirement, or come out of retirement, believing that the market is solely responsible for their losses.  Many times the losses are due to negligence or fraud of those in the financial industry entrusted with overseeing these investments.  We have handled hundreds of cases across the country concerning investment advisor and broker fraud and negligence.  Cases we have handled on behalf of investors have included broker theft, Ponzi schemes, investment analyst fraud, hedge fund fraud, churning, failure to execute trade, mutual fund fraud, failure to conduct due diligence and unauthorized trading.

One of the most common areas where we help investors recover their losses is in the area of unsuitable investments – investments that are too high risk in light of an investor’s wants and needs.  Brokers and brokerage firms both have duties to recommend only "suitable" investments for their customers and can be responsible for investment losses if they fail to do so.  A suitable recommendation is one that considers the individual investor's investment objectives, financial needs and tolerance for risk.  A common example of an unsuitable investment is one where an investor who is retired, or is approaching retirement, is recommended an investment that has heightened risk, such as bonds or stock in medium to small companies or partnerships.  Brokers and brokerage firms have many incentives for selling unsuitable investments.  Brokers and brokerages often receive larger commissions for selling aggressive investments than they do for more conservative investments.  Additionally, brokerage firms will often pressure their brokers to sell certain securities irrespective of whether that investment is suitable for an individual customer for reasons such as to eliminate the brokerage’s holding of certain investments in its inventory.  In addition to such fraudulent reasons to sell unsuitable securities, sometimes the unsuitable sale can be the result of simple negligence on the part of the advisor or broker.  Anytime an investor loses an amount that impacts his/her lifestyle or retirement plans, or that investor suffers a significant loss in an investment that the investor did not completely understand, that person should question whether the investments recommended were suitable. 

We are available to help you determine the cause of your loss during an initial, no fee, no obligation consultation.