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Broker/Brokerage Firm Misconduct

Brokers and brokerage firms generally act for the best interests of their customers. Oakes & Fosher handles cases for those situations when they do not.

Broker misconduct generally falls into two categories (1) self-dealing and (2) failure to make suitable investment decisions for a customer. The rules, regulations and standards governing securities transactions are, however, complicated to say the least. 

Broker Negligence

Did your broker fail to follow your directives or fail to factor your age and other circumstances relating to your financial situation or needs? Broker negligence generally occurs when a broker fails to recommend “suitable” investments for the customer based on factors such as age, employment status, financial situation and needs, directives as well as investment objectives and risk tolerance level. 

Excessive Trading

Excessive trading, commonly referred to as “churning,” involves the broker trading securities in the account in an excessive manner. In this type of case, the broker places his own interests ahead of those of his customer for the purpose of generating additional fees. Although churning often occurs by trading in and out of stocks, churning can also occur by short-term trading in mutual funds, bonds or annuities.