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Fresno Stockbroker Fraud Attorneys

Stockbrokers and financial advisers owe several duties to their clients, including the duty to be truthful and the duty to recommend only suitable investments. Likewise, brokerage firms must use due diligence and be truthful when they recommend particular investment products. When these duties are breached, the brokerage firm may well have legal responsibility.

If you are a victim of stockbroker fraud and require competent legal advice on dealing with matters, the lawyers at the Law Office of Jeffrey B. Pape, P.C. , are ready to advocate for your interests. Fresno stockbroker fraud attorney Scott Shewan handles our securities practice and has more than 30 years of legal experience, much of which has been focused in the area of securities arbitration. He has built a national practice and is known for the level of quality legal representation he provides for his clients.

Maximizing Recovery For Client Losses

the Law Office of Jeffrey B. Pape, P.C. , has succeeded in recovering our clients' losses through arbitration awards and, many times, we have successfully procured a favorable settlement without the necessity of an evidentiary hearing. We have even been successful in obtaining awards for punitive damages and elder abuse damages.

Stockbroker Misconduct Schemes

Any time brokers fail to fulfill their fiduciary duties, there may be actionable broker misconduct and investment fraud, including:

  • Failure to diversify: Over-concentration in any area may increase risk to an unacceptable and illegal level.
  • Unsuitable advice: A broker has specialized training and experience. Brokers have a duty to use that training and experience when giving investment advice. Brokers are required to "know their customers," which means that any recommendation to buy or sell a security must be consistent with the needs and desires of the client.
  • Margin trading: Buying on margin essentially allows you to borrow money from the broker to buy more stock. Margin trading is very risky. If the stock goes up, you can see huge profits. But if the stock goes down, you lose your original investment and still have to repay the loan. If brokers fail to warn investors of the extreme risk, or open a margin account without permission, there may be a case of broker misconduct.
  • Excessive trading: A broker should put clients' interests first. When the broker's compensation becomes the driving force behind the recommendations, the broker may be liable to the client.
  • Fraud and unauthorized transactions: A client should be able to make an investment decision on the basis of the facts. When the broker provides false information, or fails to disclose material information to the client, legal responsibility may result.
  • Defective products: Through the years, the stock brokerage industry has been riddled with scandals. Most recently, Wall Street firms foisted upon the investing public some of the worst scams ever perpetrated. For example, subprime mortgages were bundled and sold as securities to investors who were told that they were entirely safe. Private placements that were incredibly risky were recommended to investors who were seeking safety of principal. Some annuity products are completely inappropriate for the people who buy them. In cases like these, the individual broker may well have been fooled as badly as the investor; yet, the firms must be responsible for the losses caused by their greed.

Contact The Team At the Law Office of Jeffrey B. Pape, P.C.

Please contact our firm at 800-797-5677 to schedule your first consultation. Alternatively, you can complete a short contact form online. Our firm handles cases in Clovis, Fresno and throughout California. Our securities practice is also nationwide.