Lawyers, Answer Questions  & Get Points Log In
Illinois Stockbroker Fraud Questions & Answers
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
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 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
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 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
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 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
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 Illinois on
Q: How often are brokers supposed to contact clients? Is it mandated in any way?
Alex Schmidt
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 Illinois on
Q: If a stockbroker embezzled my money, is there any way for me to get it back in a court action?
Steve McCann
Steve McCann answered on Apr 16, 2018

It is certainly possible, but the chances of recovery are dependent on very specific facts that are not provided here, such as any contracts signed and any representations made by your stockbroker. That being the case, I recommend you organize everything in your possession related to this matter,... Read more »

1 Answer | Asked in Stockbroker Fraud for Illinois on
Q: My friend is a day trader who said he'd do some investing for me but it's not worked out well - can I sue him?
Steve McCann
Steve McCann answered on Mar 2, 2018

The viability of a lawsuit is a very fact specific determination that cannot possibly be answered definitively without more details. That said, you may have a case depending on specific representations that may have been made by the trader. I recommend organizing everything you have in your... Read more »

1 Answer | Asked in Stockbroker Fraud, Civil Rights and Real Estate Law for Illinois on
Q: Can a listing agent refuse to go to any of her clients about my offers. Every house I like she is listing.

My realtor and listing agent are in the same office. The listing agent keeps saying I should find houses that are not hers. We have the down payment and all. She tells people I am a risk and not to take offer. She will even refuse to give my realtor the code to a house.

James G. Ahlberg
James G. Ahlberg answered on Jan 17, 2018

Take these facts to a lawyer's office. Something is seriously wrong if a listing agent in a brokerage you ware working with is telling people you are a risk. If your realtor is telling you the listing agent says this, I would question whether the realtor is telling you the truth.

1 Answer | Asked in Consumer Law and Stockbroker Fraud for Illinois on
Q: I invested more than $45,000 dollars with Connectivision, aka Power Station the past 9 years. It's been all based on

misinformation and fraudulent claims. Do I have any claims or recourse at this time? Thank you.

Steve McCann
Steve McCann answered on Aug 7, 2017

You may have recourse, but fraud claims are extremely fact intensive, so an attorney would need to review all of the specific information to give you a comprehensive evaluation of the merits of your claim(s). That said, I would recommend organizing all information relevant to this situation,... Read more »

1 Answer | Asked in Stockbroker Fraud for Illinois on
Q: My broker has been selling my stocks a lot and I'm getting dinged for all of his commission fees as a result. I'm not

seeing any financial benefit for this excessive trading but he sure is making money off the fees I have to pay him. Is this legal?

Ray Choudhry
Ray Choudhry answered on May 8, 2017

Churning is unethical.

Depending on what is being done, it may be illegal.

Why don't you take control over the account.

1 Answer | Asked in Stockbroker Fraud for Illinois on
Q: If I bought stock from a guy who called me and I want to sue him, what state should I sue him in?
Steve McCann
Steve McCann answered on Nov 16, 2016

The answer to your question depends on specific facts that are not provided here. Assuming you reside in Illinois, and the broker does business in Illinois, you should be able to file suit in Illinois. I would recommend consulting with an attorney individually prior to doing so, as there are... Read more »

1 Answer | Asked in Stockbroker Fraud for Illinois on
Q: I told my stockbroker to buy a significant amount of stock in a certain company and he failed to do so.

Can he be held liable for the resulting losses?

Steve McCann
Steve McCann answered on Oct 14, 2016

It is possible that your stock broker can be liable, but the feasibility of your recovery depends on very specific facts. Do you have a contract with the stock broker that outlines your relationship? Do you have written evidence of your request for him to buy a significant amount of stock? In... Read more »

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.