Did my broker commit securities fraud?

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There is no such thing as risk-free investing. This is why New York investors should be as informed as possible when deciding how and when to invest their money. Like many others, you probably trusted your broker to give you everything you needed to make an informed decision. However all too often “investment advisors” fail to fulfill this obligation. In this situation, unfortunately, he or she may have committed securities fraud.

Brokers are required to provide investors with all of the material facts related to an investment. This has to happen before handing over any money. Even if you trust your broker and think that he or she makes great decisions and recommendations, you cannot be certain whether a specific investment is the right choice for you until you have been given all information related to returns, risks and more.

Leaving out information is not the only problem. Misrepresentation is another significant problem that negatively impacts an investor’s ability to make informed decisions. If your broker exaggerated the predicted returns or downplayed the risks when encouraging an investment, it is very likely that you made a less than ideal choice. You would have probably made a different decision had your broker presented the information correctly.

The world of investing is complicated, which is why you work with a broker. The relationship between a broker and investor must be built on trust, and some New York brokers take advantage of that trust. Whether through omitting or misrepresenting facts, your broker may not only have engaged in securities fraud, he or she also may have caused you to suffer significant losses. You can find information about your options for recovering those losses right here on our website.