New York Stockbroker Fraud Questions & Answers
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: 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: 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: 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: 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: 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: 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 »
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 »
Q: What sorts of ethical guidelines must brokers follow? How do I know if mine is unethical?
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?
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?
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?
Attempted to rent a co-op in NYC. Their broker said he could definitely get us in within a week of submitting the application, citing inside relationships with the board of directors. It took over a month for 2 such board members to coordinate their schedules to meet with us. Instead of moving from... Read more »
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... Read more »
Q: Can I sue my broker or brokerage in court or do I need to go through arbitration?
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/... Read more »
Q: What happens if my broker gives me information that is misleading or completely omitted from his investment
recommendations?
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?
Top producer and branch manager. Made a wonderful living in the banking industry. Banking License withdrawn under article 12 e. What does that mean? Denied renewal of license to sell in Connecticut too. Poor Credit? Are you allowed to apply for MLO license in the state of NJ or any other... Read more »
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: Are there monetary caps on the percentage my broker can take out of my stock earnings?
No, but there can be a claim for excessive commission.
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
neutral third party?
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,... Read more »
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
I'm still irritated. Do I have any recourse?
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 ?
Hello
I was f1 visa student I got married in 2016 us citizen girl , we filled up the applications for the immigration and I got my ssn and the work authorization card ( work permit ) , and we still pending for the first interview , waiting when they will schedule our interview, I found her... Read more »
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... Read more »
Q: What kind of damages can I get if I win a case against my broker for breach of promise?
The expectation measure of damages, basically the amount that you could have expected to receive had he fulfilled his promise. There's a lot more to proving damages than that, but this is the category of damages I would argue you would be entitled to.
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