Securities & Investment Fraud
Representing the Investor
Brokerage Firm’s Failure to Supervise
Do mounting losses, bad recommendations, and questionable activity by your broker have you wondering: "Who's minding the store?" You may be able to recover your losses if they were the result of your brokerage firm's failure to supervise its brokers. The Financial Industry Regulatory Authority (FINRA) has rules of conduct for every member or member firm, including supervision rules, which require that member firms establish and maintain a reasonable system to supervise the activities of each registered representative. All broker-dealers, registered representatives and individuals who trade securities are subject to those regulations.
Violations of FINRA's rules of conduct regarding supervision include:
- Failure to properly maintain accurate records of brokerage accounts
- Failure to review daily trading activity, including investments "away from" the firm
- Failure to establish, maintain, and enforce written supervisory procedures
- Failure to maintain proper separation between trading and back office functions
- Failure to thoroughly investigate all customer complaints
Why are these rules important? Lack of proper supervision can create an environment that is ripe for broker fraud and investment wrongdoing, including:
- churning
- unsuitability
- unauthorized trading
- negligence, misconduct and failure to disclose
- breach of fiduciary duty
- misrepresentations/omissions
Many of Fineberg Gresham’s clients are investors who have suffered large losses due to unscrupulous brokers who all too often choose investment strategies that line their pockets at the expense of their clients. Depending upon the specific facts and circumstances of your situation, you may have unwittingly or unknowingly been the victim of more than one of these types of fraud or broker/ advisor misconduct.
The securities fraud attorneys at Fineberg Gresham are committed to determining the root causes of the fraud and ensuring that those responsible are held accountable. Fineberg Gresham is committed to protecting the victims of fraud, negligence, “Ponzi” schemes, or other misconduct in the financial industry. A securities fraud attorney at Fineberg Gresham will analyze a potential case with a team of forensic accountants, financial analysts and experts to determine what happened and why. In addition, Fineberg Gresham will coordinate with law enforcement officials and assist in making claims with victims' restitution funds. If Fineberg Gresham finds that the losses were the result of greed, misconduct and fraud on the part of the broker or financial advisor, a securities fraud lawyer at Fineberg Gresham will pursue all available remedies to rectify the financial harm that our client has sustained.
If you believe that you have sustained substantial losses due to securities fraud or are concerned about any of the matters listed above, please contact a securities fraud lawyer at Fineberg Gresham for a free case evaluation. We investigate and prosecute financial fraud and broker misconduct cases throughout the country.