Stockbroker Fraud Q&A by State
Your current state is Virginia
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Stockbroker Fraud Questions & Answers
Q: I am looking for several TOP lawyers/firms with extensive experience relative to Brokerage firm Fraud.
You will want to also include in your search attorneys who represent investors in FINRA arbitration, as you are likely subject to an arbitration clause if you dealt with a licensed brokerage firm. I would suggest using the search function on this website, or visit www.piaba.org to find an attorney... Read more »
Q: How to clean stocks from a deceased loved one without a wheel
What in the world are you talking about?
Q: Austrian Broker lost my £4.5 G by transfer I'm told 2 wait till they check with there bank, still waiting since 10.7.19
I'm in London & I sold my bitcoin & wanted to transfer the cash back to my bank account they sent me a transfer receipt proving to me the transfer however i contacted them when it went over a week then they've replied that the funds have gone missing & they're waiting for a reply from there bank... Read more »
This is an international banking question, not a question about "Stockbroker Fraud."
Advice: If you do not have a lawyer who is competent to operate successfully in the difficult area of international wire fraud you should seek one immediately. But please be forewarned that-while the... Read more »
Q: Can i sue a bank or its account holder for me wiring money to them loosing that money and realize it was a fraud?
I have bank account info and they were informed that it was fraud and still refuse to send money back
Unfortunately, this very common problem is occurring at an ever-increasing rate in Texas--and in all other states. When wire transfer fraud like this happens--unless the bank is able to claw back the money from the fraudster's account-- you are out of luck. The only possibility available to you is... Read more »
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?
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 »
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 »
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 »
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 »
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 »
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 »
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.
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 »
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 »
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?
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 »
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?
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 »
Q: What does 'churning' mean in the context of investment fraud?
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 »
Q: My stockbroker was part of a Ponzi scheme and he subsequently filed for bankruptcy. Can I still recover money I lost
from him?
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 »
Q: What agency would I complain to about the way my stockbroker is handling my account? I'm not sure if it's legal.
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 »
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?
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 »
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?
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 »
Q: Do I have a claim for if there was also a general downturn in the market when I lost money?
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 »
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?
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 »
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?
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 »
Q: How often are brokers supposed to contact clients? Is it mandated in any way?
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 »
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