Fighting for the rights of misled investors is no small task. Investment litigation demands the kind of experience, teamwork and resources that a law firm like Elk & Elk can offer.

 

For more than four decades, the lawyers, paralegals and support staff at Elk & Elk have been fighting for the rights of hard-working citizens seeking to level the playing field as they took on big corporations and large insurance companies.

 

In the wake of all the headlines lately about failures in the securities and lending industries, Elk & Elk is prepared to do the same for ill-advised investors.

 

All too often, big investment firms and smooth-talking financial advisers have gambled away, with little or no consequence, the life savings of working-class citizens, vulnerable seniors and average Janes and Joes just trying to grasp a little prosperity. The current state of the mortgage lending industry brought on by predatory lending is but one blaring example of this kind of egregious fiscal irresponsibility.

 

Investing money carries with it certain risks, but rules of disclosure exist to help potential investors make informed decisions and invest – or not – accordingly. If you or someone you know have been led to believe an unstable investment was a safe one, contact the securities team at Elk & Elk Co., Ltd. Our experienced attorneys have the time, the desire, the resources, experience and support to successfully pursue your claim against a bad financial adviser.

 

Please take a few minutes to browse this site and learn about some current securities litigation and whether you may have a case. Then, please take some time to fill out our short case evaluation form and call our office at 1-877-ELK-7-ELK for a no-cost consultation

Many investors don’t have the time or the expertise to research and invest in the most profitable stocks, bonds and mutual funds. As a result, more and more of us trust professional financial managers and their investment firms to help manage – and hopefully grow - our assets. Most of these firms invest prudently and safeguard their clients’ interests with due diligence and care.

Unfortunately this is not the case with each and every investment firm. For example, although the U.S. Securities and Exchange Commission reported 100 fewer investor complaints in 2007 compared to 2006, the number of misrepresentations – inaccurate or incomplete disclosures – rose 7.51 percent during the same period and complaints about firms’ delivery of funds or proceeds increased by 14.56 percent between 2006 and 2007. Full Coverage.

Few Types of Securities Claims

Stockbrokers, registered investment advisers and financial planners are required to deal with their clients with the utmost integrity. They are not permitted to place their own interests ahead of their clients. This duty is called a fiduciary duty because they are in a position of trust. If the stockbroker or investment adviser breaches that fiduciary duty and causes you injury, you may have a stock fraud claim and may be able to recover damages for any losses caused by the stockbroker’s misconduct.

The federal and state securities laws protect investors from material misstatements of fact as well as the failure to disclose a material fact in connection with the purchase or sale of securities. Since securities are defined very broadly, these laws may apply to many different financial instruments. In addition to misstatements and omissions in connection with the purchase or sale of a security, there are a number of other types of securities fraud claims including the following:

 

Unsuitable Securities Claims

Stockbrokers must be licensed by FINRA (the Financial Industry Regulatory Authority). Consequently, they are subject to FINRA's rules. One of the fundamental rules imposed by FINRA is that stockbrokers are required to make appropriate or suitable recommendations to their customers based on their tolerance for risk and investment objectives. "Suitability" is determined by your income, net worth, age, investment objectives, risk tolerance and other factors. Your stockbroker may also violate the suitability rule by failing to properly diversify your investment portfolio or by concentrating too much of your portfolio in volatile, or risky securities. The recommendation and sale of unsuitable investments constitutes securities fraud and if it caused a financial loss, may be the basis for a securities fraud claim.

 

Churning and Unauthorized Stock Trade

Your stockbroker is never authorized to trade on your behalf without your fully informed approval or without written authorization. Unauthorized trading violates industry regulations and can be the basis for a claim against the broker and the stockbroker's firm. Churning occurs when your broker convinces you to make multiple trades in your account or recommends that you swap or flip products such as annuities or mutual funds, which are typically long-term investments, that is not in your best interest. Recommendations to buy and sell securities or investment products are typically designed to benefit the stockbroker by generating commissions at your expense. Academic and industry studies indicate that buying and holding a well-allocated portfolio over the long-term is in the best interest of the investor. Churning is a fraudulent scheme designed to generate more commissions. If you have been the victim of unauthorized trading or churning, call us.

 

Failure to Execute Securities Orders

Your broker is allowed “a reasonable time” to execute your securities orders. However, if you asked your broker to sell a stock or if you had a stop loss order or something similar, and your broker failed to execute it in a timely manner, and the stock you were attempting to sell lost significant value during the delay, you might have a claim against your broker for failure to execute. Additionally, a claim may also arise if your broker refused to sell or dissuaded you from selling specific securities after you gave him or her instructions to do so.

 

Failure to Supervise Stockbrokers

All FINRA member firms and managers within those firms are obligated to supervise their stockbrokers. They also have an obligation to review the statements relating to your securities investment and trading accounts for potential problems including unsuitable securities, unauthorized trading, and churning. In most situations where your broker has violated the securities laws and regulations, the broker’s firm and manager may be liable for failing to supervise his or her activities as well.

 

If you or a loved one has been harmed by stockbroker or investment fraud, we'll evaluate your claim for no cost and help you get the justice you deserve.