Broker-Dealer Fraud

Boca Raton, Florida, Securities and Investment Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.

If you believe that your broker-dealer and/or account executive has perpetrated a fraud and deceit upon you or has otherwise misrepresented a material fact concerning a particular investment or investment strategy, which has caused you damage, you may be able to recover your losses. However, if you feel that you were misled, we believe there is a right way and a wrong way to go about dealing with what has happened to you.

Over the years, except in extreme and very limited circumstances, it has been the exception rather than the rule that a complaint directly from an investor has been acted upon favorably by a broker-dealer. This extends even to a complaint letter written by an attorney. Practically speaking, this makes sense if every complaint filed by a customer was resolved favorably for the customer, the profitability of a broker-dealer would be adversely affected. What the broker-dealer banks on is the fact that most people will not complain.

In our opinion, the right way to deal with a potential dispute, with your broker-dealer and/or account executive, is to have your claim thoroughly investigate by a qualified attorney, with the resources initially available, taking into consideration the attorney’s experience, so that a reasonable conclusion can be reached as to whether or not you do, in fact, have what appears to be a legitimate claim.

The most important factor in any type of dispute is the underlying facts of the case. What type of oral and/or physical evidence exists to support your claim. However, many times, the client does not know what evidence is material or relevant to the claims made. Additionally, the client usually does not know what type of documentation should be maintained by the other party. Sometimes, the documents that are obtained from the opposing party are just as important as the facts within your knowledge. Many times, it is the documentation received from an opposing party and the examination of adverse witnesses that carries the day.

The next factor to consider is what type of legal claims can be made based upon the facts of the case. It is for this reason that a complete examination of the facts underlying the claims should be made in advance of filing the claim. Only after this is done can it be determined what type of legal claims (causes of action) have a chance of being properly alleged and proven at final hearing or trial.

For example, there are two basic types of legal theories that might be used in alleging claims for fraud and misrepresentation. There are common law claims whose legal elements have been established over the years as a result of various court decisions and there are various types of statutory claims that have been created by either state legislatures or the U.S. Congress. In this latter situation, the legal elements that must be alleged and proven at trial are either set forth in the statute, established by court decisions or both. If you would like to see the legal elements that need to be established in a common law, a federal statutory claim or under Florida Statute 517.301, please follow the respective highlighted link.

It is also important to remember that fraud and misrepresentation can be involved in many types of personal and commercial transactions.

Thus, it should go without saying that the hiring of a qualified legal representative that performs a complete review of the facts, understands the relevant legal requirements and has been there before is critical to enhancing your chances of success. You get once chance to have your matter resolved. Don’t sell yourself short.

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With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.