Types of broker misconduct to look out for


Investors in the state of New York and beyond might find themselves the victims of fraud, theft or other crimes committed by brokers. The crimes might be simple and obvious, or they could be part of an intricate long-term criminal scheme. Before filing a complaint or speaking with a lawyer, however, a client should evaluate the situation and ask themselves a few questions.

Someone who believes they’ve been the victim of broker misconduct should start by contacting the broker directly and if not resolved, following up any verbal communications with written confirmation of the conversation. In some cases, it may have been a simple misunderstanding or a miscommunication between the two parties.

However, if the broker doesn’t respond or if their response is inadequate, the client should speak to the branch manager and/or head of compliance of the brokerage firm. Clients should be sure to keep all their correspondence in writing so there is a paper trial of the contemporaneous communications with the firm should a legal situation arise.

Clients should also ask themselves if the broker committed genuine misconduct or if their stocks simply decreased in value. No stock offers a 100% guaranteed return on investment, no matter how secure it might appear. Brokerage firms cannot compensate clients merely because their stocks dropped in value.

However, if the client suspects that the broker committed fraud, performed a trade without their authorization, deliberately omitted important information or committed other illicit or criminal activity, they should immediately contact an experienced securities lawyer with a known track record of dealing in such maters.

An attorney could help the client evaluate the situation, gather a strong body of evidence, and bring the strongest case possible. Working with an experienced securities lawyer, a client might be able to negotiate a substantial settlement and possibly recoup the entirety of their losses plus expenses, attorneys fees, interest and punitive damages after trial. Timothy J. Dennin, P.C. has an unparalleled thirty year track record of receiving these results on behalf of his clients.