Financial Advisor Disputes
Holding negligent and fraudulent financial advisors accountable through FINRA arbitration and litigation.
Overview
Common Types of Disputes Against Financial Advisors
Our attorneys have experience handling negligence and fraud lawsuits against financial advisors and stockbrokers. These claims are generally pursued through arbitration with the Financial Industry Regulatory Authority (FINRA).
If you've lost money because your financial advisor didn't handle your account properly, contact MDF Law for a free consultation to find out if you're entitled to money damages.
Negligence vs. Fraud
Financial Negligence
Negligence is an accidental breach of duty — a mistake. A financial advisor's duty is to adhere to industry standards for their clients. Examples include:
- ▸Unsuitable investment recommendations
- ▸Excessive trading (churning)
- ▸Failure to diversify a portfolio
- ▸Failure to follow client instructions
- ▸Unauthorized trading
- ▸Failure to disclose material information
Financial Fraud
Fraud is intentionally deceptive behavior that can give rise to both civil liability and criminal penalties. Examples include:
- ▸Misrepresenting investment products
- ▸Falsifying account statements
- ▸Stealing client funds
- ▸Running a Ponzi or pyramid scheme
- ▸Front-running (trading ahead of client orders)
- ▸Creating fictitious investments
How Are Disputes Handled?
Claims against financial advisors are generally handled through FINRA arbitration — a faster, less expensive alternative to court litigation. FINRA hears all cases that violate its code of conduct, not just those that violate federal or state law.
Sometimes financial advisors can continue unethical and illegal actions for many years without being caught, because clients don't know how to take action. If you've suffered losses, don't wait — there are strict statutes of limitations.
Call (800) 767-8040
Please call to speak with an attorney, or use the form to request a free consultation. We handle all cases on a contingency basis.
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