Broker Misconduct Dedicated to Delivering Results

STock Broker Misconduct Attorneys Based in New York

Proudly Advocating for Investor Clients Nationwide

Investors typically trust the brokers they hire to provide appropriate investment advice and to comply with the obligations imposed by securities regulations. However, brokers do not always comport themselves in accordance with their duties, and broker misconduct can cause investors to suffer significant losses. If your broker’s misconduct caused you to sustain financial harm, it is in your best interest to meet with a trusted securities attorney as soon as possible to discuss the facts of your case and your options for pursuing damages.

At Weltz Law, our legal team has a stellar reputation for working tirelessly to help clients throughout the U.S. recover damages they are owed. Our attorneys zealously represent investors harmed by broker misconduct in securities arbitration and litigation, and we can develop compelling arguments in support of your claims to help you pursue damages.

What Is Stock Broker Misconduct?

Broker misconduct is a broad term used to encompass any action or inaction a broker engages in that violates the duties owed to their client. Brokers are required to gather material information regarding their clients, diligently research any investments, and make suitable investments on a client’s behalf. Brokers are also required to be candid with their clients and refrain from making inappropriate trades.

Margin Trading

In simple terms, margin trading is the act of borrowing funds from a brokerage firm to invest in securities. The brokerage firm charges the investor interest on the borrowed funds and has the right to sell any securities in the account if the value of the account decreases. While margin trading is extremely risky for investors, it can be very profitable for brokers. Thus, brokers sometimes engage in margin fraud or abuse it with the intent of generating excessive fees and commissions.


In most cases, a strong investment portfolio is diversified, with funds invested in a variety of stocks and bonds. Overconcentration occurs when a broker invests in a limited number of stocks or a single segment of the economy, such as pharmaceutical stocks. Investing in only one class of assets may constitute overconcentration as well. Overconcentration is an example of broker misconduct that violates the duty of suitability.

Account Churning

Account churning is excessive trading for the sole purpose of generating fees and commissions. This type of misconduct occurs when brokers buy and sell securities excessively, solely to generate commissions. Account churning is a violation of the rules and regulations that pertain to securities transactions, and it often constitutes fraud.

Unauthorized Trading

Brokers are required to obtain a client’s verbal or written authorization before buying or selling any securities. When a broker violates this duty, it is considered unauthorized trading. Unauthorized trading is unethical and can result in substantial financial harm. If an investor suffers losses due to unauthorized trading, they can pursue claims of fraud, negligence, and misrepresentation against their broker.


Even if a broker is not acting with the intent to harm, their actions can still constitute misconduct. Brokers are expected to uphold a reasonable duty of care when handling clients’ investment accounts. A broker who breaches this duty can be found negligent and held accountable for any losses suffered due to their negligence.

How Do I Know If My Broker is at Fault for My Losses?

Brokers may fault your losses on a bad market while trying to cover up the fact that they may have committed broker misconduct or fraud. Your stock broker may have misrepresented information about your investments or engaged in unauthorized or shady transactions.

You can find out about broker misconduct several ways. If you have switched to a new stock broker, your new broker may have detected wrongdoing from your previous broker. Or, your accountant may also notice problems with your account and notify you. You can also find out whether your broker is at fault by contacting one of our stock broker misconduct attorneys for help reviewing your portfolios.

We Are Here to Discuss Your Options for Seeking Damages

Whether broker misconduct is negligent or intentional, brokers should be held accountable for the losses that they cause. If you suffered monetary losses due to broker misconduct, you should immediately speak with an attorney regarding the damages that you might be able to recover for your harm. Weltz Law has more than 50 years of combined experience and regularly represents clients in securities arbitration forums and in litigation in state and federal courts nationwide.

If you’re ready to set up a free case consultation, please give us a call today at (877) 905-7671.


Experienced & Effective
  • 30+ Years of Collective Experience

    Our attorneys have over 30 years of collective experience representing clients in all aspects of securities and commercial litigation.

  • Contingency Fees for Our Securities Law Clients

    We will not receive a penny in attorney's fees unless a positive recovery is obtained in your case. Contact us to see if you're eligible.

  • Free Consultations

    We will assess the merits of your claims and help you decide on the next step.

  • Litigated Claims in Excess of $50 Million for Our Clients

    Our firm is prepared to fight for you to seek maximum compensation.


Word From Former Clients
    Calmly walked me through the process.

    “Due to his hard work, the hearing lasted less than 30 minutes with the judge dismissing the complaint.”

    - L.K.
    Successfully represented me in a number of matters

    “Attentive to every aspect of my matters, always available to speak with me, gave me great advice and fought hard for me every step of the way.”

    - I.S.
    Truly terrific in every way.

    “He cared, he was responsive, and he guided me through a difficult time with compassion and expertise.”

    - F.S.
    I could not recommend him highly enough!

    “He was there to talk me through any questions and concerns I had until we decided on the best option for me.”

    - Securities Industry
    Smart, cost-efficient, and gets results.

    “My go-to lawyer for arbitration and regulatory matters for years.”

    - B.D.

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