Question: What Are The Signs Of Securities Fraud?
Answer: Here are eight signals that indicate you may be dealing with securities fraud:
1. Having incorrect account information
2. Your account is excessively traded or "churned"
3. Your broker has been negligent in the handling of your account
4. Your broker mentioned or provided you with reports or analyst ratings to convince you to buy a security or prevent you from selling it
5. Your broker failed to fully disclose the risks of margin trading
6. Your broker placed you only in suitable investments
7. Your broker marked your confirmations as "unsolicited"
8. Your broker made trades in your account without your "written authorization"
All of the above could be fraudulent acts by a broker and are possible breaches of fiduciary duty. If you detect them, get a securities expert or securities attorney to review the activity to determine if you have a legitimate cause of action to take your broker and the securities firm to arbitration.
Answered by: Fend
Categories: Stock Broker Fraud Securities Expert Witness Expert Witness
View All Questions