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The experienced securities fraud attorneys at Lubiner, Schmidt & Palumbo want to assist any Madison investor who has incurred losses in his brokerage and/or retirement accounts due to the improper conduct of his financial advisor. The experienced securities litigation firm of Lubiner, Schmidt & Palumbo counts among its attorneys a former New York City prosecutor, a former in house attorney at a large brokerage firm, and a former broker. The firm has three decades of experience handling securities matters. The firm’s experienced securities litigation attorneys have appeared in arbitrations and courts throughout the country, including New York and New Jersey. The firm has handled hundreds of securities arbitrations conducted by the FINRA. In the course of handling a variety of securities cases, the securities fraud attorneys at Lubiner, Schmidt & Palumbo have developed a thorough understanding of brokerage firm operations as well as best practices regarding branch office operation. If Madison investors are victimized by the misdeeds or negligence of their brokers, the experienced securities litigation attorneys at Lubiner, Schmidt & Palumbo will vigorously work to obtain just compensation for their financial damages.
The securities industry has multiple regulations which brokerage firms and their employees are obligated to follow. The regulations serve to protect Madison customers and their investments. For, instance, the securities laws and industry rules prohibit unauthorized trading. Unless a client has given her broker written authorization, brokers must discuss recommended trades with the client and obtain her permission prior to the entry of any orders. Unauthorized trading occurs when the broker fails to obtain that permission beforehand. Any losses incurred by the client as a result of unauthorized trading are recoverable.
Similarly, industry regulations require that brokers “know their customer.” This means that a financial advisor must have an understanding of the client’s financial background, the client’s investment experience and objectives and the client’s risk tolerance. Failure to do so can lead to unsuitable trading on the part of the broker. Investments that are too risky for the client, or the risk of which the client did not understand, are unsuitable for that client. Investments that consume too much of the client’s investable assets, or which don’t meet the client’s investment objectives, may also be unsuitable. Again, losses from unsuitable trades are recoverable by the injured investor.
Brokers are also obligated to fully disclose all material facts regarding any proposed investment they show to their customers. Failure to do so could amount to the broker making misrepresentations/omissions to the client. If a broker fails to disclose a back end sales charge on a particular class of mutual fund or an annuity, that could be deemed an omission by the broker; if the client is injured by that omission, the client can seek to recover her damages. If a broker misrepresents the risks inherent in a particular product, or misstates the expected holding period of a particular investment, an injured customer can seek to recover losses occasioned by the misrepresentation.
A recurring problem currently facing the securities industry involves elder abuse. The securities regulators have recognized the problem and have introduced new rules to combat it. Nevertheless, instances of elder abuse continue to occur. See here, here, here and here. Unscrupulous advisors take advantage of senior investors who may have difficulty reading and understanding account statements. Unsuitable investments may be sold to elderly clients who may not fully understand the risks involved in a particular investment. The complex investment products currently available to retail investors may be offered to senior investors who do not understand how these products work and what risks they entail. Madison investors who are senior citizens, or their friends or relatives, who believe they have been victimized, should consult the experienced securities litigation attorneys at Lubiner, Schmidt & Palumbo if they have questions regarding a particular investment or their account in general.
The experienced securities fraud attorneys at Lubiner, Schmidt & Palumbo are ready to assist any Madison investors who feel they have been victimized by their financial advisor. Contact Lubiner, Schmidt & Palumbo for a consultation.