Types of Claims

Securities Fraud

Securities fraud may be generally described as conduct that induces an investor to make a purchase or sale or other investment decision on the basis of false or misleading or omitted information. Such practice is often a violation of federal and state securities laws, as well as the rules and regulations of FINRA, the SEC and other self-regulatory authorities. Securities fraud, also commonly known as investment fraud, stockbroker fraud, and stock fraud, frequently results in monetary losses that can only be recovered through negotiation, dispute resolution, or litigation.

Generally, the main component in securities fraud is deception, misrepresentation, and/or omission of material facts. However, FINRA has established many distinct duties owed by stockbrokers to public investors, including the duty to only recommend suitable investments and strategies, and to always and only deal with the public fairly and in good faith. When your financial professional either violates state or federal law, or violates the rules and regulations put in place by the industry (FINRA), they can be held financially responsible for your losses and/or damages.

In Texas, or claims that are covered by the Texas Securities Act, the Texas Securities Act is an extremely powerful tool for the investor-claimant.  Generally, to be successful under the Texas Securities Act, a claimant only needs to prove there was a misrepresentation or omission of a material fact in connection with the offer or sale of a security or covered investment contract.  The Act provides for rescission (undoing the transaction), damages, interest and in appropriate cases a recovery of all costs and attorneys' fees.

To learn more about the types of claims that may be brought against stockbrokers, click on the links below:

Types of Claims Against Brokers

Some Tips to Safeguard Yourself Against Securities Fraud:

Your broker or adviser is required to learn your risk tolerance, investment objectives, and financial condition before making any recommendations. Make sure that your trusted professionals are asking these type of questions---if they are not, they will not have a reasonable basis on which to base a recommendation, and are likely violating applicable rules and putting your investments at risk. In short, they are not doing their job, and you should consult with our firm to determine whether any duties have been breached and whether your broker should be held responsible for any losses or damages. Losing money in investments isn’t necessarily “just how it is.” Investigate further when your broker tries to explain that "everybody lost money" because of the market, etc. Remember, a suitable portfolio will match your tolerance for risk, and the gains or losses from a suitable portfolio may be appropriate in any market cycle.

Secondly, avoid investments that are not fully explained by your adviser. If you don’t fully understand how an investment works, and why the investments is suitable for you, don’t invest in it. If you don't know how much you have at risk in your portfolio, your broker has failed to properly explain your portfolio.

Lastly, if you suspect that you have lost money through brokerage fraud, misconduct, or mismanagement, please contact the Forman Law Firm, P.C. today for a confidential Free Case Evaluation. Call us at (866) 597-2221, email info@formanlawfirm.com , or fill out and submit our online “Contact Us” form.

Client Reviews
Bryan Forman helped me through the turmoil of an investment advisor taking my family’s money. I was depressed and they gave me hope. They helped me recover some of the money taken from me. Bryan and his assistant Melody Bounds helped me with other concerns in my life and I am grateful. They kept me informed every step of the way and I highly recommend their firm. Nancy
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Bryan and his assistant Melody could not have been more kind, compassionate and attentive. They explained everything that would be happening and were always available. My family is extremely grateful for the way they handled our legal issue. I would highly recommend them for your investment and securities issues.
I hired Bryan to help me with an issue with a financial institution. Bryan and his assistant Melody Bounds were professional and personal while resolving my situation. Bryan's experience and expertise were crucial in the positive outcome. Both he and Melody spent long hours researching and preparing my case. There was excellent communication during the process and they always kept me informed on the current events in my case. They treated me like family and not just a client. I would highly recommend Bryan Forman to represent anyone that needs legal representation regarding possible malpractice regarding investment fraud. Bryan will listen sincerely to your situation and give you his honest opinion on the validity of your case. John
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