Louisville Security Fraud Cases
If you have been the victim of inappropriate investments, "churning", or other fraudulent investment practices, you may wish to learn more about your rights in pursuing a securities fraud claim.
Securities fraud
Securities fraud, also known as investment fraud, occurs when a broker or other securities professional intentionally provides biased, contradictory, or unfounded information or withholds information in order to achieve financial gain at the investor's expense, for himself or his organization.
Types of Kentucky Securities Fraud
There are many ways that your stockbroker or other agent may commit securities fraud in Kentucky. The following are some common fraudulent actions, which can cause damage to investors:
- Providing bad investment advice
- Recommending high risk investments without adequately explaining the risks
- Making trades without an investor's authorization or understanding
- "Churning" or excessively trading to create commissions
- Failure to diversify a portfolio
- Misrepresenting, omitting, or otherwise mishandling information vital to protecting an investor's interests.
- Otherwise failing to uphold fiduciary duties to an investor
Stockbrokers' Obligations to the Client/Investor
A stockbroker has a legal duty to act in the best interests of the investor at all times. Failure to do so may provide actionable grounds on which to file a securities fraud lawsuit in Kentucky. A stockbroker also has an obligation to treat his customers fairly by employing the highest standards of honesty and integrity. They also have a duty to disclose all information in connection with an investment recommendation or other advice. Brokers may not trade for an investor without their prior consent or authorization to execute such practices. Under the "suitability rule", a broker must have reasonable grounds for believing that a recommendation is appropriate for his/her client based upon the investor's financial and other needs.
Your legal rights
In order to protect consumers from Kentucky securities fraud, the federal and Kentucky governments allow defrauded investors to seek compensation for their losses. Through a securities fraud claim, you may be entitled to recover your loss of income, interest on the loss, legal fees, and other damages.
In many cases, investors who have been defrauded do not realize they have been the victim of securities fraud in Kentucky until the damage has been done. Fortunately, the law allows you to "reverse" those damages by filing a securities fraud claim to recover your losses.
While most securities professionals are honest individuals who provide a tremendous service to their clients, others are unethical and dishonest stockbrokers looking to make a buck at your expense. If you have had the unfortunate experience of dealing with the latter, let us help you obtain the compensation you deserve and bring the fraudulent broker to justice.
If you feel you may be the victim of Kentucky securities fraud, Brett Oppenheimer would like the opportunity to discuss your concerns and determine the best way to protect your legal rights. Please contact our Kentucky security fraude attorneys today for a free case evaluation.
