Broker and Securities Fraud

Broker’s Actions can Cause Monetary Loss

This is another type of securities fraud. Investors can lose money when stockbrokers convince investors to place money in the hands of people that that have misrepresented the securities they are selling. This is stockbroker fraud and can cause the investor to lose money. Joining with other investors that have been wronged in a class action lawsuit can be a way to right the fraudulent activities of the stockbroker.

Standing Up to Broker Fraud

When you have been the victim of stockbroker fraud, in most cases you are not the only person that has been wronged. The one way to hold the stockbroker responsible is fighting back with the class action attorneys at Ehline Law. The actions by a stockbroker that can take fraudulent advantage of stockholders are:

  • Misrepresentation: The broker might make false representations about the profits, opportunities, or revenues that are not true. In their own way the broker could be trying to drive up the value of the stocks that are owned by the brokerage firm that they want to unload.
  • Ponzie Schemes: Ponzi schemes involve using new investor’s moneys to pay older investors dividends. When you have been pulled into a ponzi scheme you are not alone and when the scheme collapses the investors lose their money.
  • Promises: When an investor is promised specific returns, it they should be cautious, especially when the return is above what the normal return would be on the market. These type of promises cannot be relied upon and the broker might also hint that what they claim is insider knowledge of in anticipation of deals that are to take place

If you have been a victim of broker fraud, usually you are not alone and a class action lawsuit is one of the most effective ways to hold the stockbroker responsible. It is expensive and difficult for one person to hold the brokerage responsible, but when they join a group in a class action lawsuit the class action attorney can give the wronged individuals a voice.

If you have been a victim of broker fraud the class action attorneys of Ehline Law can hold the brokerage responsible.