If you have lost money investing through a broker, you may have been the victim of one or more of the most common abuses. Please contact our firm if you have been the victim of any of these or other illegal practices.

Unsuitable Recommendations—the broker recommends securities which are  too risky for your income level, age or experience

Churning—the broker engages in constant trading to generate commissions. This is sometimes accompanied by a loss of principal in the account

Misrepresentation—the broker lies to you about the worth of a security, or makes baseless promises or predictions in an effort to get you to purchase it

Unauthorized Transactions—in accounts where the broker is not authorized to trade without your permission, the broker engages in trades which results in losses to you.

Mutual Fund Switching—the broker recommends that you sell your current mutual fund and buy his recommendation. This results in huge commissions for the broker, but locks you into a fund where you must pay significant penalties to sell, and which may result in investment losses as well

Margin—brokers will insist that less experienced investors agree to open a margin account, and before long the customer has a huge margin debt which can result in losses when the securities in the portfolio decline.  You may wind up with a huge debt owed to the broker-dealer.

Over-Concentration—brokers fall in love with a small number of stocks, and get the customer to purchase them  so that they become the dominant securities or only security in the portfolio. The customers loses big when the price crashes.