Stockbroker Fraud Q&A by State

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Stockbroker Fraud Questions & Answers

2 Answers | Asked in Business Law, Contracts and Stockbroker Fraud for California on

Q: Is it legal to create contracts regarding loans to someone for the purpose to use that money to trade stocks?

If not, and a contract was made for that purpose. Let's say the loaner, loaned $5k and was promised back $10k.

Would the borrower still be obliged to give $10k

even though the contract is not legal?

Samuel B. Edwards answered on Jun 15, 2019

There is nothing inherently illegal or unenforceable for a contract concerning trading stocks. However, there are a lot more questions that would need to be answered in order to know for sure, including what state you are in. There may be a requirement for the person doing the investing to be a... Read more »

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1 Answer | Asked in Estate Planning, Real Estate Law, Probate and Stockbroker Fraud for Oklahoma on

Q: I need to remove a trustee that has used the trust for her own personal gain. In fact she made changes to the original.

The changes were made while the successor was in declining health and could no longer care for herself. The trustee became the trustee after the successor died. The trust lawyer gave the trustee rules to follow and as such, the trustee violated those rules. The trustee is also a beneficiary and... Read more »

Kyle Persaud answered on Apr 4, 2019

File an action in court to remove the trustee.

Look at the wording in the trust. Does it say that the "situs" of the trust is in a certain state? If so, file the action in that state.

The wording of the trust may also specify in which state a trust action must be filed. If that...
Read more »

1 Answer | Asked in Stockbroker Fraud for New York on

Q: I have a question concerning a Ponzi scheme and the subsequent trust liquidation reimbursement(s).

I was the victim of a Ponzi scheme in 2017. The liquidation trust has made its initial distribution and anticipates more payments over the next several years. This first payment represents less than 10% of the expected reimbursement, so it appears this will indeed be a long process. The only... Read more »

Bruce Alexander Minnick answered on Apr 3, 2019

If I am reading your interesting question correctly, some state and/or federal law enforcement agencies have already shut down the Ponzi scheme that bilked you out of a substantial amount of money and has set up a liquidation trust that is selling off the criminal's assets; and so you are just now... Read more »

1 Answer | Asked in Criminal Law, Real Estate Law and Stockbroker Fraud for Missouri on

Q: If an individual acquires property by fraud and the real owner was unable to locate or recover who is the true owner

The father was a cpa but the son put the property in his name using a poa assigned to the father. Unknown for some time and while trying to locate the cpa not realizing it was taken the same day of the assigned poa. True owner receiving 3266.00 through a 3 yr period for 166 acres of prime resort... Read more »

Jennifer Sheila Kornblum answered on Jan 9, 2019

If the son had the father's power of attorney, son had a fiduciary duty to act in father's best interest. Questions like this usually come down to what is provable in court and the credibility of the witnesses.

1 Answer | Asked in Consumer Law, Banking, Collections and Stockbroker Fraud for New York on

Q: about a stock purchased

i have invested $20,000 in a company selling securities, i was told they would send the certificate of stock after 6 months, it has been more than a year i have yet to receive a certificate, the company is still online selling securities but their information have chnaged i cannot get any contact,... Read more »

Michael David Siegel answered on Jan 2, 2019

It sounds like you were scammed. Call the Securities and Exchange Commission enforcement office and the FBI. Your bank has nothing to do with this. They just sent a wire to a place you ordered. Am I missing something? The "company" you are dealing with likely does not really exist in a way a... Read more »

1 Answer | Asked in Stockbroker Fraud for Florida on

Q: I believe my broker is defrauding me and I suspect that other clients are being similarly defrauded. How do I contact

them to start a class action?

Mitchell Feldman answered on Dec 12, 2018

You obtain the assistance of a lawyer to review the claims and he or she will assist in this regard if there is a claim to be brought. I would not worry about a class let’s start with what happened to you and whether there is a chance for recovery or a claim against the broker at issue. If... Read more »

1 Answer | Asked in Stockbroker Fraud for Illinois on

Q: I recently learned my stockbroker has been sued in the past and he never disclosed this. When I confronted him, he told

me he was only required to disclose if I directly asked him. Is this true?

Alex Schmidt answered on Nov 19, 2018

Whether a financial advisor registered with FINRA must report to his broker dealer or disclose on his brokercheck when they have” been sued” depends on 2 things:

1. The total settlement amount and whether the registered person was involved in an alleged sales practice violation...
Read more »

1 Answer | Asked in Stockbroker Fraud for New York on

Q: What does 'churning' mean in the context of investment fraud?

Alex Schmidt answered on Nov 12, 2018

Churning in connection with investment fraud is simply when a customers investment advisor generates a high amount of trading activity in the customers investment account in order to collect more commissions. Churning is most commonly measured by checking the turnover ratio of the investment... Read more »

1 Answer | Asked in Stockbroker Fraud for New York on

Q: My stockbroker was part of a Ponzi scheme and he subsequently filed for bankruptcy. Can I still recover money I lost

from him?

Alex Schmidt answered on Oct 29, 2018

Even if your stockbroker has filed for bankruptcy you may still be able to recover investment assets lost in connection with the Ponzi scheme. If your stockbroker was licensed with a registered broker dealer then a FINRA arbitration could be commenced against the broker dealer and recovery of your... Read more »

1 Answer | Asked in Stockbroker Fraud for Illinois on

Q: What agency would I complain to about the way my stockbroker is handling my account? I'm not sure if it's legal.

Alex Schmidt answered on Oct 25, 2018

If you feel your investment account is being mismanaged you can report this to Financial Industry Regulatory Authority or ("FINRA"). This self-regulatory organization or ("SRO") oversees brokerdealers and sets compliance rules by which they must act. FINRA is where customer complaints against... Read more »

1 Answer | Asked in Stockbroker Fraud for New York on

Q: I'm trying to figure out if my "financial planner"

was actually qualified to give me advice on investing - do they have any kind of certification they have to have?

Alex Schmidt answered on Oct 12, 2018

If your "financial planner" is a stockbroker who sells and markets stocks, bonds or other securities products, the easiest way to assess their certifications is checking the FINRA platform Brokercheck. Simply type in the brokers name and you will see what certifications the broker or "financial... Read more »

1 Answer | Asked in Stockbroker Fraud for Illinois on

Q: I asked for documentation/filings from the

company my broker had me invest in and after two months, nothing - is he required to give this to me?

Alex Schmidt answered on Oct 5, 2018

If you have the name of the company you can simply go onto the SEC platform known as EDGAR and enter the name of the company or its ticker. This SEC platform will contain a trove of data on the company at issue. As for the broker there is no regulation that I am aware of that mandates a stock... Read more »

1 Answer | Asked in Stockbroker Fraud for New York on

Q: Do I have a claim for if there was also a general downturn in the market when I lost money?

Alex Schmidt answered on Sep 14, 2018

You absolutely may still have a stockbroker fraud claim if their was a market downturn. Much will depend on the violation that you are alleging occurred whether it be fraud, misrepresentation, unsuitability or any number of potential violations. Your investment losses and whether you have sustained... Read more »

1 Answer | Asked in Stockbroker Fraud for Illinois on

Q: I've heard the rules are changing in protecting

me against bad investments and what a broker has to tell me - is that true?

Alex Schmidt answered on Sep 14, 2018

There are rules in place protecting you against bad or unsuitable investments. FINRA suitability rules for instance require that any investment recommendation made by a broker to an investor must be in line with investors stated financial profile and objectives. What I think you might be... Read more »

1 Answer | Asked in Stockbroker Fraud for New York on

Q: If the stockbroker didn't force you to buy the stock, but did talk it up

and then the investment didn't work out - can we still sue?

Alex Schmidt answered on Aug 23, 2018

As a former Series 7 and 66 stockbroker I can attest to having personally "talked up" many different securities. Whether there is a cause of action depends on what you mean by "talked up". If the stock broker mispresented the issue or provided false information concerning the stock there would be... Read more »

1 Answer | Asked in Stockbroker Fraud for Illinois on

Q: How often are brokers supposed to contact clients? Is it mandated in any way?

Alex Schmidt answered on Aug 23, 2018

Whether a client needs to be contacted really depends on the context concerning the question. If the investment account is a non-discretionary account then the broker has to contact the client prior to each trade being entered. If the account is a managed account where the broker has received... Read more »

1 Answer | Asked in Stockbroker Fraud for Texas on

Q: Are brokers required to tell me any information or notify me before buying stocks?

Tracy Stoneman answered on Jul 17, 2018

Not only must a stockbroker talk to a client immediately before each trade, the broker must go over pertinent information, such as the price, number of shares, pros and cons, etc. It is to be a detailed conversation. The only exception is if you gave your broker discretion to make trades without... Read more »

1 Answer | Asked in Real Estate Law, Stockbroker Fraud and Landlord - Tenant for New York on

Q: I need advice about deposits to hold apartments during application process and the proper documentation procedures.

I signed a contract before applying for an apartment. It stated what the rent would be and agents fee amount and deposit amount. It should be noted it specifically stated the credit check fee was nonrefundable, but did NOT say that the deposit was nonrefundable. Two days later, after determing the... Read more »

Elaine Shay answered on Jun 9, 2018

The law varies between states but generally the terms of the contract (deposit agreement) control the rights of the parties. You state that the deposit agreement does not contain language stating the deposit would be nonrefundable but you haven't said it states the deposit would be returnable. If... Read more »

1 Answer | Asked in Stockbroker Fraud for Iowa on

Q: Is it realtor fraud when realtor overprices a home in favor of the seller due to relationship with seller?

Tax assessment for the year purchased was $50000 dollars under the amount being asked. When I offered less than asking and more than tax value I was told that if my offer was to be considered I had to give a serious offer. I was reluctant to make higher offer but feeling pressure to buy I raised... Read more »

Erik Steven Fisk answered on May 8, 2018

Your question is ridiculous. You don't claim "fraud" to argue a house is priced too high. If the price is too high, don't buy it.

1 Answer | Asked in Criminal Law and Stockbroker Fraud for Virginia on

Q: can a felon have his conviction removed from his records without having the crime dismissed?

Steve Miyares answered on May 6, 2018

Not in Virginia. If you were convicted of the offense in Virginia, then the conviction is permanent and can not be removered or expunged from your criminal record.

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