Can You Sue a Brokerage Firm for Investment Losses?

If you have experienced significant investment losses, you may be wondering if you can sue your brokerage firm. Can You Sue a Brokerage Firm? Yes, you can sue a brokerage firm to help recover any investment losses that you have suffered due to a broker’s negligence or fraud. Lawsuits are typically filed against brokerage firms rather than individual brokers because the firm is vicariously (automatically) liable for the actions of all their employees. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037. In addition, brokerage firms are directly responsible for supervising its employees and ensuring that they are adhering to industry regulations and can be held liable for their supervisory failures. FINRA rules require a brokerage firm to establish policies and procedures that monitor brokers’ activities in order to avoid investor losses and investment fraud. As such, if the brokerage firm has failed to supervise its employees properly and this has led to your investment losses, you may have a claim against the firm. IMPORTANT: Filing a successful lawsuit against a brokerage firm is a complex undertaking. You will need to prove that the firm did not properly supervise its employees and that this failure led to your investment losses. If you decide to pursue legal action, it is important to consult with an experienced securities lawyer who can help you navigate the process and build a strong case against the firm. When Can a Brokerage Firm be Held Liable for Investment Losses? Despite having issues with an individual broker, many investors are surprised to learn that lawsuits against an individual are actually quite rare. The vast majority of lawsuits that are filed in connection with investment losses are brought against the brokerage firm that employed the broker. A brokerage firm is required to properly supervise its employees and to ensure that they are adhering to FINRA rules and regulations. If the firm fails to do so and this results in investors suffering losses, the firm can be held liable. It’s unfortunately common for independent brokerage firms to hire under-qualified brokers with little to no experience in the industry. These brokers are often given very little training and are left to their own devices when it comes to handling clients’ investments. As a result, these inexperienced brokers can make serious mistakes that cost investors a lot of money. Due to the fact that brokerage firms are required to properly supervise their employees, the liability for investment losses often falls on the brokerage firm that hired the broker rather than the individual broker him or herself. In addition, under Section 20(a) of the Securities and Exchange Act, a brokerage firm can be held liable for the negligence of its individual brokers and advisors. In essence, the law tends to hold the brokerage firm liable for the misconduct of its employees unless the brokerage firm acted in good faith and did not indirectly cause the misconduct which has resulted in the investors’ losses. Note: The process of establishing liability against a brokerage firm is complex and it can be difficult to prove that the firm is responsible for your investment losses. It is in the best interest of the brokerage firm to avoid liability, so they will likely have a team of lawyers working to protect them. As such, if you decide to pursue legal action against a brokerage firm, it is important to consult with an experienced securities lawyer who can help you navigate the process and build a strong case against the firm. The Law Offices of Robert Wayne Pearce P.A. has over 40 years of experience representing those who have been wronged by a fiduciary and have recovered over $170 million in investment losses for our clients. If you believe that you have been the victim of broker or brokerage firm misconduct, we can help. Contact us today for a free consultation. When Does the Liability Fall on the Individual Broker? There are many circumstances where the liability for investment losses may fall on the individual broker. For example, if a broker makes material misstatements or omissions about an investment, the broker can be held liable for any losses that result from those misrepresentations. Additionally, if a broker engages in fraudulent or illegal activity, the broker can be held liable for any losses that occur. All brokers and financial advisors are required to adhere to a strict code of ethics and owe their clients a fiduciary duty. A fiduciary duty is a legal obligation to act in the best interest of the client. If a broker breaches this duty and causes the client to lose money, the broker can be held liable. There are a wide variety of circumstances where a broker may breach their fiduciary duty to a client. For a more complete discussion on when the liability for investment losses falls on the individual broker, please see our article on “How to Sue a Financial Advisor or Stockbroker Over Investment Losses.” Have You Suffered Investment Losses? Take Legal Action Today. If you have suffered investment losses, you may be able to take legal action against the brokerage firm or individual broker responsible for your losses. The first step is to consult with an experienced securities lawyer to discuss your case and determine what legal options are available to you. The Law Offices of Robert Wayne Pearce P.A. has over 40 years of experience representing those who have been wronged by a fiduciary and have recovered over $170 million in investment losses for our clients. If you believe that you have been the victim of broker or brokerage firm misconduct, we can help. Contact us today for a free consultation.

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Can I Sue My Financial Advisor For Structured Note Investment Losses?

Structured notes are investments that combine securities from several asset classes to create a single investment with a particular risk and return profile over a time period. Unfortunately, investment loss is not unheard of with structured notes. This article will try to explain how a structured note works and what you can do if you have lost money due to an advisor’s bad purchase decisions for you. Can I Sue My Financial Advisor For Structured Note Investment Losses? Yes, you can sue your financial advisor for structured note investment losses for one or more of the following reasons: What Are Structured Notes? Structured notes are investments which often combine securities of different asset classes as one investment for a desired risk and return over a period of time. They are complex investments that are often misunderstood by not only investors but the financial advisors who recommend them.  Structured notes are manufactured by financial institutions in all sizes and shapes. Generally, a structured note is an unsecured obligation of an issuer with a return, generally paid at maturity, that is linked to the performance of an underlying asset, such as a securities market index, exchange traded fund, and/or individual stocks. The return on the structured note will depend on the performance of the underlying asset and the specific features of the investment being made. The different features and risks of structured notes can affect the terms and issuance, returns at maturity, and the value of the structured product before maturity. They may have limited or no liquidity before maturity. Before investing, you better make sure you understand the terms and conditions and risks associated with the structured note being offered. Structured notes are often represented as investments being guaranteed by large financial institutions. Indeed, the top issuers of structured notes in 2021, Goldman Sachs (12.75%), Morgan Stanley (12.70%), Citigroup (12.46%), J.P. Morgan (11.92%), UBS (80.47%), Credit Suisse (4.99%), RBC (4.45%), Bank of America (3.90%), Scotiabank (3.89%), are some of the largest financial institutions in the world. It’s important to understand that although the benefits of owning structured products may be guaranteed to be paid by one of those large financial institutions, the amount of interest or principal being guaranteed is dependent upon the features of the product being sold; that is, the specific terms and conditions of the investment contract being purchased. In this low-interest rate environment the most popular structured notes being offered are structured notes with principal protection and income features. Some of the structured notes offer full principal protection, but others offer partial or no protection of principal at all. Some structured notes offer higher rates of interest that may be paid monthly and then suddenly stop paying any interest at all because payment was contingent upon certain events not happening. It all depends on the terms and conditions of the investment contract being purchased, which is why you must read the term sheet or better yet the prospectus to understand the nature, mechanics and risks of the structured note being sold. You need to understand that there are many key terms beyond the words “guarantor” and “guaranteed” which are used often to describe structured notes. You need to ask about and be sure to understand the following features of the structured notes being offered: Are Structured Notes Suitable Investments? Let me answer that question this way, a particular structured note may be suitable for somebody but not everybody. With regard to the more common structured notes being offered by the major financial institutions these days, they are not suitable for individuals seeking an investment that: They are not suitable investments if you are someone who: Have You Suffered Structured Note Investment Losses? Unfortunately, the lure of higher commissions have in recent years provided added incentives to stockbrokers to recommend structured notes to investors, including those for whom they were inappropriate, too risky, or never in alignment with their investment goals, including, the following types of structured notes: It’s a shock to many investors who sought to avoid market volatility by investing in structured notes. Many who thought they would receive a steady stream of income and guaranteed return of principal have suffered sharp and unexpected losses in structured notes with “reference assets” like Peloton, ARK, Alibaba, Meta(Facebook), Zillow, Yeti, etc. Depending on the other features of those structured notes, the loss of income and principal could be realized permanently. How Can I Recover My Structured Note Investment Losses? There is no way you will recover your structured note investment losses without some legal action. At The Law Offices of Robert Wayne Pearce, P.A., we represent investors in all kinds of structured note investment disputes in FINRA arbitration and mediation proceedings. The claims we file are for fraud and misrepresentation, breach of fiduciary duty, failure to supervise, and unsuitable recommendations in violation of FINRA rules and industry standards. Attorney Pearce and his staff represent investors across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award. CONTACT US FOR A FREE INITIAL CONSULTATION  The Law Offices of Robert Wayne Pearce, P.A. have highly experienced investment fraud lawyers who have successfully handled many structured note cases and other securities law matters and investment disputes in FINRA arbitration proceedings, and who work tirelessly to secure the best possible result for you and your case. For dedicated representation by an attorney with over 40 years of experience and success in structured product cases and all kinds of securities law and investment disputes, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.

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Can an Oil Investment Fraud Lawyer Help Me Recover Losses?

Are You Dealing with Oil & Gas Investment Fraud? The Law Offices of Robert Wayne Pearce, P.A. are investigating claims against brokerage firms that sold either oil or gas stocks and other related products. Investments in the oil and gas sector have been very popular over the last few years, and depending upon when your financial advisor recommended you purchase and/or sell the investments, you may have suffered catastrophic losses.  These losses may have been the result of your financial advisors misrepresentations, omissions and misleading statements, failure to do his/her due diligence investigation, and/or unsuitable recommendations. If you believe you are dealing with oil investment fraud, now is the time to consider hiring an experienced investment fraud lawyer. The attorneys at The Law Offices of Robert Wayne Pearce, P.A. help oil and gas investors review their oil-related investments to determine if they have been the victim of oil investment fraud. Investors who have suffered large losses may be able recover some of their losses through FINRA arbitration against oil brokerage firms which improperly sold oil or oil futures contracts while withholding material information on the risks of investing in oil. Give us a call at 800-732-2889 or contact us online. Let’s discuss your case and see what we can do to help get you the compensation you deserve. What is Considered Oil & Gas Investment Fraud? Oil and gas investments take many different forms, including oil and gas stocks, oil and gas drilling programs, oil and gas limited partnerships, oil futures contracts, oil or gas royalty interests in wells which produce oil through a “fee title” arrangement. Fraudulent oil investment activity may fall into one of two categories: fraud by omission or fraud by commission. Fraud by omission occurs when the seller fails to disclose material information, while oil investment fraud by commission occurs when the seller provides false information to oil investors. Both forms of oil and gas investment fraud can occur at any point during oil or gas investments, including before an oil investor purchases oil stock; while oil stock is held; on the date of purchase; or after oil stocks are sold. The oil and gas industry is heavily regulated, and oil investments are subject to many federal securities laws. If oil brokerage firms fail to follow the law, oil investors may be able to recover damages for oil investment fraud by FINRA arbitration. This means that you only need help finding oil investment fraud cases where brokers failed to comply with federal securities laws or breached their fiduciary duty to oil investors. Investors should always consider oil and gas investments to be high risk due to the volatility in oil prices. Some oil stock brokers have been accused of selling oil stocks at inflated oil prices based on false information, while others may have failed to inform investors of risks associated with a particular oil or gas company. If a brokerage firm did not disclose the risks or oil prices to an oil and gas investor prior to a sale, the oil investment fraud lawyer at The Law Offices of Robert Wayne Pearce, P.A. can help investors recover losses from oil-related investments through FINRA arbitration. Some Oil & Gas Investment Fraud Allegations Include: – Misrepresentation of oil company facts made to oil and gas investors. – Failure to disclose oil stock risks prior to oil & gas investments. – Misleading oil companies by encouraging oil companies to change accounting methods in order to show higher oil reserves than actually exist. Give us a call at 800-732-2889 or contact The Law Offices of Robert Wayne Pearce, P.A. oil investment fraud law firm online to speak with oil investment fraud attorney Robert Wayne Pearce today about oil and gas stock investments, oil and gas limited partnerships, oil futures contracts and oil and gas drilling programs. Recovering Oil & Gas Investment Losses Through FINRA Arbitration If oil brokerage firms failed to disclose oil stock risks or oil prices prior to oil & gas investments, oil and gas investors may be able to recover oil-related losses by FINRA arbitration. FINRA, the acronym for Financial Industry Regulatory Authority, is a non-governmental regulatory association which governs disputes between investors and brokerage firms, including disputes on oil investment fraud allegations. You can learn more about the FINRA arbitration process here. File a Claim with FINRA The formal arbitration process for oil and gas, oil stock fraud cases begins with the filing of a statement of claim by you or your investment fraud attorney. The investor who files the FINRA claim against the brokerage firm is referred to as the “Claimant” in the FINRA arbitration proceedings. If you are an investor, the state of claim is the most important document in your case. This document describes what happened to cause you to lose capital in your oil & gas investment and why you or your FINRA arbitration attorney believes that you are entitled to win a monetary award or relief against the brokerage firm. IMPORTANT: It’s critical that you and/or your attorneys write a clear, concise, accurate, and honest description of what happened as well as a strong case in favor of winning the arbitration. You can learn more about how to file a FINRA complaint and the FINRA complaint process here. The oil fraud attorneys at the Law Offices of Robert Wayne Pearce, P.A. are experienced FINRA arbitration lawyers who have a thorough understanding of the arbitration process. We understand what’s at risk in securities, commodities, and investment law issues, and we fight to obtain the best possible outcome every time. Past Investor Recoveries The Law Offices of Robert Wayne Pearce, P.A., has helped recover millions of dollars in valuable compensation for defrauded investors. Below are some notable victories in past investor recoveries.  $21,041,285 FEDERAL COURT FINAL JUDGMENT In 2010, Robert Pearce won a case in federal court for $21,041,285. The final judgment was entered against the defendant for fraud, breach of fiduciary duty, and civil theft pursuant to Florida Statutes Sections 812.014 and 772.11. $7,840,000 FINRA ARBITRATION SETTLEMENT...

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Non-Discretionary vs. Discretionary Investment Accounts

When investors first set up an account with a brokerage firm, that account is designated as either discretionary or non-discretionary. Unfortunately, many investors are simply unaware of the status of their account or what it means. This is usually because investment brokers fail to properly explain each type of account. However, knowing what kind of investment account you have is important. The claims available to a victim of investment fraud or broker misconduct depend on the status of your account. Discretionary vs. Non Discretionary Accounts A discretionary account is an investment account in which an investment advisor has the power to make individual trades without requiring client approval. A non-discretionary account is one in which the client has complete control over whether or not to execute a trade. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037.

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FINRA Arbitration: What To Expect And Why You Should Choose Our Law Firm

If you are reading this article, you are probably an investor who has lost a substantial amount of money, Googled “FINRA Arbitration Lawyer,” clicked on a number of attorney websites, and maybe even spoken with a so-called “Securities Arbitration Lawyer” who told you after a five minute telephone call that “you have a great case;” “you need to sign a retainer agreement on a ‘contingency fee’ basis;” and “you need to act now because the statute of limitations is going to run.”

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The Law Offices of Robert Wayne Pearce, P.A. Wins $6 Million Plus Award Against UBS and UBS Puerto Rico

In an arbitration proceeding against UBS Financial Services, Inc. (UBS) and UBS Financial Services, Inc. of Puerto Rico (UBS-PR), the Law Offices of Robert Wayne Pearce, P.A. won $4.25 million in compensatory damages plus interest at 6.25% from February 28, 2014 and costs of $170,000 for one of the firm’s clients last month. A summary of our clients’ allegations against UBS and UBS-PR are set forth below. If you or any family member received similar unsuitable recommendations from UBS-PR and its stockbrokers, or found yourself with an account overconcentrated in Puerto Rico municipal bonds and/or closed-end bond funds, or if you borrowed monies from UBS and used your investments as loan collateral, we may be able to help you recover your losses. Contact our office as soon as possible for a free consultation about your case. Time is of the essence!

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The Law Offices of Robert Wayne Pearce, P.A. Wins $1.45 Million Plus Interest Award Against UBS and UBS Puerto Rico

In an arbitration proceeding against UBS Financial Services, Inc. (UBS) and UBS Financial Services, Inc. of Puerto Rico (UBS-PR), the Law Offices of Robert Wayne Pearce, P. A. won a $1.45 million plus interest award for one of the firm’s clients last week. A summary of Claimant’s allegations against UBS and UBS-PR are set forth below. If you or any family member received similar unsuitable recommendations from UBS-PR and its stockbrokers or found yourself with an account overconcentrated in Puerto Rico municipal bonds and/or closed-end bond funds, or if you borrowed monies from UBS and used your investments as collateral for those loans, we may be able to help you recover your losses. Contact our office for a free consultation about your case.

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The Law Offices of Robert Wayne Pearce, P.A. Wins $600,000 Plus Interest Award Against UBS Puerto Rico

In an arbitration proceeding against UBS Financial Services, Inc. of Puerto Rico (UBS-PR), the Law Offices of Robert Wayne Pearce, P. A. won a $600,000 plus interest award for one of the firm’s clients. A summary of Claimant’s allegations against UBS-PR are set forth below. If you or any family member received similar unsuitable recommendations from UBS-PR and its stockbrokers or found yourself with an account overconcentrated in Puerto Rico municipal bonds and/or closed-end bond funds, or if you borrowed monies from UBS and used your investments as collateral for those loans, we may be able to help you recover your losses. Contact our office for a free consultation about your case.

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2013 Most Effective Lawyers Finalist

Daily Business Review Monday, December 9, 2013 ARBITRATION AWARD AGAINST WELLS FARGO RECOVERS MOST OF FAMILY’S LOSSES Mediation and arbitration are supposed to be faster and more cost-effective than going to court. However, it was neither in a case involving the theft of millions of dollars from College Health and Investment L.P., a family-run limited partnership. The case took more than three years to resolve as attorneys for Wachovia Securities, now part of Wells Fargo, used numerous delaying tactics before ultimately paying a $2.75 million arbitration award, said Boca Raton securities attorney Robert W. Pearce, who represented College Health. The case grew out of Wells Fargo’s failure to detect the alleged theft and unauthorized transactions of millions of dollars by Esther Spero, whose aunt, Shari Jakobowitz, was in charge of the partnership’s accounts. Spero was accused of misusing the family’s financial information to steal about $7 million, which she in turn lost to one-time Miami Beach developer Michael Stern, who was supposed to be investing in real estate. Instead, Stern allegedly used the money to pay off his own debts after the real estate crash while funding a lavish lifestyle. Pearce traced most of the money and made recoveries in state court against Stern, a title company, Spero and Wachovia. “They came up a bit short, but we came close to getting most of their money back,” Pearce said. Then, in July, a Financial Industry Regulatory Authority arbitration panel ordered Wells Fargo to pay $2.75 million in damages and interest for failing to detect Spero’s alleged embezzlement. Pearce alleged bank employees went so far as to create a false power of attorney to give Spero control over the account that held most of the assets. Had the bank enforced its own policies and procedures, as well as FINRA’s rules, it would have detected the embezzlement, Pearce argued. “The bank had numerous red flags. It should have made inquiries to stop the movement of funds,” Pearce said.

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Wells Fargo Advisors Ordered to Pay $2.8 Million to Limited Partnership

By Dow Jones Business News, July 09, 2013, 04:07:00 PM EDT By Corrie Driebusch NEW YORK–An arbitration panel has ordered Wells Fargo Advisors to pay $2.8 million to a family limited partnership that accused the firm of negligence in connection with alleged thefts from its investment account. The Miami , Fla.-based partnership had sued a former secretary, accusing her of forging signatures to transfer money out of its accounts, and won a $21 million judgment in a Florida district court in 2010. That suit alleged the secretary, Esther Spero, took the money for her personal use from accounts at Wachovia Securities and elsewhere between 2005 and 2008. Wachovia was later acquired by Wells Fargo & Co. (WFC ). In its separate arbitration claim against Wells Fargo, the partnership, called College Health and Investment Ltd., said the brokerage was negligent in failing to detect the alleged theft. The Financial Industry Regulatory Authority arbitration panel found Wells Fargo to be liable and ordered that it pay $ 2.3 million in damages and prejudgment interest. Wells Fargo also must also pay $419,000 in margin interest and $35,000 in costs. College Health and Investment Ltd. had requested $4.4 million, according to the arbitration panel ruling. As is customary in the FINRA claims system, the written award did not explain the panel’s reasoning. Robert Wayne Pearce, lawyer for the partnership, said it showed the panel agreed with the negligence claim. A Wells Fargo spokesman said in a statement, “We’re disappointed in the panel’s decision and don’t believe it was warranted by the facts presented during the hearing.” Write to Corrie Driebusch at corrie.driebusch@dowjones.com. Dow Jones Newswires 07-09-131607ET Copyright (c) 2013 Dow Jones & Company, Inc.

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