New York Stockbroker Fraud Questions & Answers
Q: about a stock purchased
1 Answer
| Asked
in
Consumer Law, Banking, Collections and Stockbroker Fraud
for
New York
on
Answered on Jan 2, 2019
Answered on Jan 2, 2019
Michael David Siegel's answer
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 civil lawsuit would lead to recovery.
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 civil lawsuit would lead to recovery.
Q: What does 'churning' mean in the context of investment fraud?
Alex Schmidt's answer
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 account. This formula measures the amount of trades in the investment account in a given time period relative to the total amount of assets being managed by the investment advisor. Churning is a violation...
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 account. This formula measures the amount of trades in the investment account in a given time period relative to the total amount of assets being managed by the investment advisor. Churning is a violation...
Q: My stockbroker was part of a Ponzi scheme and he subsequently filed for bankruptcy. Can I still recover money I lost
Alex Schmidt's answer
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 lost investment assets could be made through that entity. If your stockbroker was operating as an independent advisor then recovery can be a little more of an issue. Much will depend on affiliations...
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 lost investment assets could be made through that entity. If your stockbroker was operating as an independent advisor then recovery can be a little more of an issue. Much will depend on affiliations...
Q: I'm trying to figure out if my "financial planner"
Alex Schmidt's answer
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 planner" has under the "Examinations" section of the platform. This will tell you if the financial planner has a Series 7 license which permits someone to sell or market securities products. Brokercheck...
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 planner" has under the "Examinations" section of the platform. This will tell you if the financial planner has a Series 7 license which permits someone to sell or market securities products. Brokercheck...
Q: Do I have a claim for if there was also a general downturn in the market when I lost money?
Alex Schmidt's answer
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 any are of course essential. Your financial profile and investment objectives which were stated to your financial advisor must also be considered. After the mass market loss following the Great...
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 any are of course essential. Your financial profile and investment objectives which were stated to your financial advisor must also be considered. After the mass market loss following the Great...
Q: If the stockbroker didn't force you to buy the stock, but did talk it up
Alex Schmidt's answer
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 grounds for a fraud claim against the broker. There may also be grounds for a claim if the stock broker related the stock back to your financial profile. For instance, if the stock broker claimed the...
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 grounds for a fraud claim against the broker. There may also be grounds for a claim if the stock broker related the stock back to your financial profile. For instance, if the stock broker claimed the...
Q: I need advice about deposits to hold apartments during application process and the proper documentation procedures.
1 Answer
| Asked
in
Real Estate Law, Stockbroker Fraud and Landlord - Tenant
for
New York
on
Answered on Jun 9, 2018
Answered on Jun 9, 2018
Elaine Shay's answer
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 either party could back out of the agreement without any consequence, what was the deposit intended to secure?
In NYC if you were unable to resolve this type of dispute, you could commence a...
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 either party could back out of the agreement without any consequence, what was the deposit intended to secure?
In NYC if you were unable to resolve this type of dispute, you could commence a...
Q: Is my broker legally required to explain the trades they've made for me if my transactions statements don't make sense
Tracy Stoneman's answer
Absolutely. By the way, unless the account is a written discretionary account, meaning you gave the broker the ability to buy and sell without talking with you, the broker is required to explain the trades to you BEFORE each and every trade!
Absolutely. By the way, unless the account is a written discretionary account, meaning you gave the broker the ability to buy and sell without talking with you, the broker is required to explain the trades to you BEFORE each and every trade!
Q: I don't think my broker has been giving me all of the pertinent details about my accounts and their trade decisions but
Tracy Stoneman's answer
First, write a letter (or email) to the firm asking for everything you need. Give the firm a deadline to respond. A court won't help you unless you first document your efforts and the firm's refusal first.
First, write a letter (or email) to the firm asking for everything you need. Give the firm a deadline to respond. A court won't help you unless you first document your efforts and the firm's refusal first.
Q: What sorts of ethical guidelines must brokers follow? How do I know if mine is unethical?
Barry Eran Janay's answer
The licensing body of the brokerage (SEC, FINRA for most securities) and the local realty association + state licensing division for real estate brokers have ethical codes that must be followed. Contact me directly (preferably via email) to go over the activity and I can give you an opinion.
The licensing body of the brokerage (SEC, FINRA for most securities) and the local realty association + state licensing division for real estate brokers have ethical codes that must be followed. Contact me directly (preferably via email) to go over the activity and I can give you an opinion.
Q: Is there anyway to check if a broker's been convicted of fraud before I hire him/her?
Barry Eran Janay's answer
Yes, most brokers are licensed through either the Dept. of State (Real Estate Brokers for instance) or a private organization (FINRA for stock brokers for instance). You can go to their website to check the status of your broker.
Yes, most brokers are licensed through either the Dept. of State (Real Estate Brokers for instance) or a private organization (FINRA for stock brokers for instance). You can go to their website to check the status of your broker.
Q: Do I need to hire an attorney to sue my broker or can I do it myself?
Barry Eran Janay's answer
You can do it yourself, but see this primer: https://www.avvo.com/legal-guides/ugc/abraham-lincoln-had-it-right---he-who-represents-himself-has-a-fool-for-a-client
You can do it yourself, but see this primer: https://www.avvo.com/legal-guides/ugc/abraham-lincoln-had-it-right---he-who-represents-himself-has-a-fool-for-a-client
Q: Any recourse against a broker who lied about an expected timeframe and cost us thousands?
Barry Eran Janay's answer
Fraudulent misrepresentation is difficult to prove, actual damages would be difficult to prove in any case since moving is always a disruption of daily life. You can try to put together a list of some damages / out-of-pocket expenses incurred that wouldn't have been incurred otherwise and if it's below $5K in most parts of NY you can just file a small claim which is an expedited type of proceeding.
Fraudulent misrepresentation is difficult to prove, actual damages would be difficult to prove in any case since moving is always a disruption of daily life. You can try to put together a list of some damages / out-of-pocket expenses incurred that wouldn't have been incurred otherwise and if it's below $5K in most parts of NY you can just file a small claim which is an expedited type of proceeding.
Q: Can I sue my broker or brokerage in court or do I need to go through arbitration?
Ali Shahrestani, Esq.'s answer
What does your contract say about that? More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney such as myself. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website, www.AEesq.com. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education...
What does your contract say about that? More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney such as myself. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website, www.AEesq.com. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education...
Q: What happens if my broker gives me information that is misleading or completely omitted from his investment
Barry Eran Janay's answer
Sounds like you may want to raise the issue with him and either file a FINRA request for mediation or arbitration. We're you damaged financially in any way? You don't have to answer on a public forum, feel free to email me privately to discuss.
Sounds like you may want to raise the issue with him and either file a FINRA request for mediation or arbitration. We're you damaged financially in any way? You don't have to answer on a public forum, feel free to email me privately to discuss.
Q: MLO license withdrawn after 20 yrs. Under article 12 e NYS law ? Conn. renewal denied. Can MLO work in another state?
1 Answer
| Asked
in
Banking, Stockbroker Fraud and Business Law
for
New York
on
Answered on May 31, 2017
Answered on May 31, 2017
Barry Eran Janay's answer
Your questions are very specific and require review of documents. I suggest you retain an attorney on a limited basis to advise you. If you like I can assist.
Your questions are very specific and require review of documents. I suggest you retain an attorney on a limited basis to advise you. If you like I can assist.
Q: If I feel like my broker is making trades that aren't in my best interest, can I request that my account be audited by a
Ali Shahrestani, Esq.'s answer
It depends on the terms of your contract. Check the wording re: disputes and fiduciary duties. More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website, www.AEesq.com. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense,...
It depends on the terms of your contract. Check the wording re: disputes and fiduciary duties. More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website, www.AEesq.com. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense,...
Q: I told my broker not to trade a certain stock and they did anyway. They say it's no big deal because it made money but
Barry Eran Janay's answer
While this technically appears to be an unauthorized trade the fact that you weren't damaged means there isn't a good case to pursue anything. You probably should just consider finding another broker.
While this technically appears to be an unauthorized trade the fact that you weren't damaged means there isn't a good case to pursue anything. You probably should just consider finding another broker.
Q: What will happen and what should do ?
1 Answer
| Asked
in
Divorce, Immigration Law, Stockbroker Fraud and Gov & Administrative Law
for
New York
on
Answered on Mar 13, 2017
Answered on Mar 13, 2017
Christine Moccia's answer
You need to speak to a qualified immigration law attorney. I can advise you that if you want to seek a divorce, you have grounds regardless of any adultery. As far as the implications with respect to your status in this country, please see a qualified immigration attorney or contact a local legal aid office or immigration assistance office to see if you qualify for free representation.
You need to speak to a qualified immigration law attorney. I can advise you that if you want to seek a divorce, you have grounds regardless of any adultery. As far as the implications with respect to your status in this country, please see a qualified immigration attorney or contact a local legal aid office or immigration assistance office to see if you qualify for free representation.
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