Stock Broker Fraud & Misrepresentation Attorneys Based in New York
Recovering Compensation for Clients Nationwide
While all investments carry some degree of risk, investors should be able to rely on a broker’s or financial advisor’s advice when deciding whether to buy or sell securities. When a broker or financial advisor provides an investor with false or incomplete information regarding an investment, it can constitute fraud or misrepresentation.
Our lawyers at Weltz Law know firsthand that securities fraud and misrepresentation can result in significant financial losses. If you were financially harmed because of an investment professional’s misrepresentation or fraud, then please reach out to the lawyers at Weltz Law so we can assess your case to determine if you are eligible to pursue damages from the party that caused your harm. We regularly represent clients of all backgrounds in arbitration, and we will work aggressively to help you pursue the compensation you deserve for your financial losses.
Representing Victims of Broker & Financial Advisor Fraud
Brokers and financial advisors have a duty to act in the best interests of their clients. One of the essential elements of this duty is the obligation to provide investors with thorough and accurate information regarding investments. Furthermore, a broker or financial advisor should complete a securities transaction only if the transaction aligns with the client’s financial goals and resources.
When brokers and investment advisors breach the duties owed to their clients by engaging in deceptive practices, they can be held liable for committing fraud. Examples of actions that can constitute fraud include:
- Providing inaccurate information on an investment:
- Engaging in overtrading
- Running a Ponzi scheme
- Financial elder abuse
- Pump and dump schemes
- Pyramid schemes
- Pre-IPO investment scams
- Value manipulation
- Penny stock and microcap fraud
- Mutual fund switching
Under Rule 10b-5 of the Securities Exchange Act, brokers and financial advisors are specifically prohibited from engaging in fraudulent practices or making untrue statements. Courts have also held that Rule 10b-5 grants individuals a private right to sue for fraud or misrepresentation.
How Do I Prove Broker Fraud?
An investor seeking to hold an investment professional liable for fraud must first prove that the investment professional knowingly made a false representation of a material fact. A material fact is any information that is essential for weighing the appropriateness of an investment. The investor must then show that the investment professional made the misrepresentation with the intent of committing fraud or misleading the investor.
Lastly, the investor must show that they relied on the false information in making an investment decision and that they suffered financial harm as a result of the reliance. Proving that an investment professional intentionally defrauded an investor can be challenging. If you were harmed by securities fraud, then you should consult our talented fraud attorneys so we can analyze your situation and determine if you can pursue a claim against the investment professional who misled you.
We Can Help You Prove Harm Caused by Misrepresentation
Even if the evidence is insufficient to prove that a broker or financial advisor meant to defraud an investor, an investor who was provided with incomplete or inaccurate information from a broker or financial advisor might still be able to pursue a misrepresentation claim.
The elements of a misrepresentation claim are the same as a fraud claim, except that an investor alleging misrepresentation does not need to prove that the broker or financial advisor acted with the intent to defraud or mislead the investor. Our seasoned securities attorneys can analyze your accounts and documents regarding your transactional history to determine your best option for seeking damages.
Explore All of Your Legal Options with Our Reputable Attorneys
Proving that an investment professional should be held liable for harm caused by fraud or misrepresentation is complicated and requires a thorough analysis of the relevant facts and law. Our firm has 50+ years of combined experience representing parties of all backgrounds in FINRA arbitration proceedings and securities litigation. Our compassionate legal professionals are mindful of the dramatic impact that financial losses can have on a person’s life, and we will work tirelessly to help you recover any compensation that you are owed for your losses.
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.
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.