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April 3, 2013
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Securities Fraud
Concerned your broker may be churning your account? Churning claims arise out of the inherent conflict of interest involved because a financial advisor is compensated by commissions earned in buying and selling securities on behalf of a client. As long as financial advisors are compensated by commissions, the
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November 27, 2012
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Blog, Securities Fraud
What is Churning Fraud? Churning fraud is defined as an unethical practice employed by some financial advisors to increase their commissions by excessively trading in a client’s account. This practice violates various FINRA Rules and is often referred to as “churn and burn”, “excessive
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June 26, 2012
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Blog, Securities Fraud
Financial Industry Regulatory Authority Inc.’s Rule 2111 covers general suitability for recommended transactions and investment strategies involving securities. The regulation essentially requires that brokers perform reasonable due diligence to understand the nature of the recommended strategy or securities
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January 4, 2012
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Blog, Securities Fraud
One of the main claims in any securities fraud case has to do with suitability (i.e. were the investments recommended to the customer appropriate in light of the customer’s age, investment experience, investment objectives, etc.). The following is a brief breakdown of the FINRA Rules applicable to suitability. FINRA
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January 4, 2012
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Blog, Securities Fraud
Have You Been a Victim of Excessive Trading? Has your account been excessively traded or churned by your financial advisor? If so, you may have a securities fraud claim to recover the damages resulting from Excessive Trading or Churning. FINRA Rule 2111 requires that broker-dealers must have a reasonable basis to
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