I am Concerned About What My Investor Advisor is Doing with My Portfolio. What are My Options?
As an individual investor, you probably rely heavily on your investment advisor for advice. You may have even granted your advisor discretion over your account (whether you know it or not), which means that he or she has the authorization to make trades without your knowledge.
Unfortunately, while it would be nice if we could all trust our investment advisors to only act with our best interests in mind, experience shows that this is not a realistic expectation. Investment fraud is a pervasive issue, and each year registered and un-registered advisors siphon millions of dollars from their trusting clients. Elderly widows. Mom and pop investors. Professional athletes. Seniors living in nursing home care. What do these groups of people have in common? They are all attractive targets for unscrupulous investment advisors.
If you are concerned about what your investment advisor is doing with your portfolio, the most important thing you can do is take action to protect your remaining assets as quickly as possible. You can also:
1. Learn about Common Examples of Investment Fraud
What constitutes investment fraud? In broad terms, investment fraud involves a broker or advisor taking advantage of an investor for personal gain. Some of the most-common examples of investment fraud include:
- Breach of fiduciary duty
- Excessive trading (also known as “churning”)
- Misrepresentations and omissions
- Over-concentration in stocks or other securities (also referred to as lack of diversification)
- Unauthorized trading
- Unsuitable investments
2. Find Our if You are Eligible for FINRA Arbitration
The Financial Industry Regulatory Authority (FINRA) is responsible for overseeing the United States’ investment markets. Investors who lose money due to broker fraud can seek to recover their losses through FINRA arbitration. You may be eligible to file for FINRA arbitration if:
- You suffered investment losses due to broker fraud; and,
- It has been less than six years since your losses occurred.
3. Learn about the FINRA Arbitration Process
The arbitration process starts when you file a claim with FINRA. From there, your broker will have the opportunity to respond to your allegations, and then you work your way toward a hearing before an arbitration panel. If the arbitrators agree that you are entitled to recover your losses, they will issue an award requiring repayment from your broker.
4. Read about Real-Life Cases of Investment Fraud
One of the best ways to learn about investment fraud is to read about some real-life examples. The following are all real cases in which individual investors suffered substantial losses due to broker and investment advisor fraud:
- Dallas Cowboys RB Suing Ameriprise Investment Broker for $15 Million
- HSBC Latest Among Big Brokerage Firms to Pay for Securities Fraud
- Investment Advisors and Advisory Firms Facing Disciplinary Action from FINRA
5. Speak With an Investment Fraud Attorney
If you believe that you may be a victim of investment fraud, it is important that you speak with an attorney promptly. If you would like to discuss your situation in a free and confidential consultation, you can call (646) 663-5628 or contact a firm onlinefor a free consultation.