Learn about how to protect your rights as an investor.
The Charles Schwab Corporation was founded in 1971. Originally, the company was named First Commander Corporation. Two years into its existence, the company changed its name to the one it currently has: the Charles Schwab Corporation. This name came from the founder and principle stockholder of the company at the time, Charles R. Schwab.
Kyros Law Offices represents investors that have suffered losses due to broker misconduct. Beyond helping investors recover from investment losses, Kyros Law Offices also tries to warn investors of potential harm before it occurs. One area for potential investment losses involves bond fund investments. Here are five reasons why investors should think twice about owning bond funds:
1. Interest rate risk
2. Credit risk
3. Redemption risk
4. Ongoing management fees
5. Uncertainty regarding what bonds or debt the fund owns.
If you have suffered losses of $100,000 or more in your bond fund investments, please call one of our securities attorneys to discuss your rights. 1-800-934-2921
Learn about what stockbroker fraud is and the different types of stockbroker fraud.
When you hire a stockbroker, you expect and trust that person to act with your best interest in mind. Your stockbroker's job is to show you how to invest your money to get the maximum return, based on his knowledge of the market, the laws, and the standard of ethics as they relate to the securities industry. When a broker acts in a way that is dishonest, misleading, or does not give the full picture in an effort to deceive you, he is guilty of stockbroker fraud, also called investment fraud.
There are several different types of investment, or stockbroker, fraud (visit our types of stockbroker fraud section for a more in-depth look at the various types of fraud). One of the most common types is when the broker gives erroneous advice. This can occur in several ways, and for various reasons. The broker may give unfounded advice, which means that he is offering his opinion on which companies in which to invest, without the benefit of actually having researched the companies. While this may not seem malicious, the broker is using the time that you are paying for to do something other than helping you, and you may end up losing a lot of money.
Other advice given may have a more sinister aspect to it. For example, if your broker intentionally steers you toward his favored companies or investments, when those are not likely to preserve your own finances, it is called giving you biased investment advice. And when he has ties to those companies or businesses, he may have a conflict of interest, which directly goes against the accepted ethical standards of the industry.
A broker may give conflicting information to different stockholders in an effort to sell off his own failing securities. This is known as contradictory investment advice, and is unethical at best, and illegal at worst. He also might mislead you by encouraging you to keep investments which are failing or which have a high risk, instead of advising you of the reality of the situation.
Once you agree to follow the recommendation of your stockbroker, you trust that he will implement the change, make the sale, or invest your money. Some forms of stockbroker fraud include not actually following through on the transaction previously agreed on, entering into transactions without your consent, and using high-pressure sales tactics to push you into agreeing to transactions that you might not otherwise.
Stockbrokers may also sell favored investments to their family members or friends, or may give poor advice to certain clients while favoring others. The fraudulent broker might not realize that not only is he wreaking havoc on his clients' finances, but that he is also creating bad relations between the brokerage and clients, as well as severing the trust that his customers may have in the stockbroking industry as a whole.
If you think that you have been the victim of stockbroker fraud, it is important to seek legal help. In some cases, you may be able to file a personal lawsuit, or to be a party in a class action lawsuit. Seeking the advice of a lawyer well-versed in stock law can help you to decide whether this is an option worth pursuing. Other times, you may be able to appeal to the owner of the brokerage, or to one of the governing agencies, such as the Securities Exchange Commission, the National Association of Securities Dealers, or the New York Stock Exchange.
Stockbroker fraud is real, and while it probably does not occur very often, there is a chance that it could happen to you. Use caution in choosing a brokerage to handle your finances, and be alert to the possibility of a less-than-scrupulous stockbroker handling your money. Most of the time, you can trust your broker to keep your interests at the forefront of your transactions, but if you feel that yours is not trustworthy, seek help sooner rather than later. Your financial future may depend on it.
Are you a victim of stockbroker fraud?
We will fight to help you get your money back. If you have lost over $100,000 due to stockbroker fraud, contact us to protect your rights. Complete the form on this page or call 1-800-934-2921 for a free no obligation consultation with a lawyer. We work on a contingency basis, so rest assured that there will never be an out of pocket expense to you.