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How to
Invest Safely
Financial Guide For Seniors |
Stock Broker
Fraud (Securities Fraud)
Stock Broker is given 18-month sentence
Despite a tear-filled apology and an
emotional plea for mercy, Daniel Baldwin Jr., a senior securities
broker who once orchestrated stock trades for pension fund manager
Nathan Chapman, was sentenced in federal court yesterday to serve
18 months in prison.
Story
Investing in the stock market can be a risky
proposition. Markets and investments can fluctuate, and the
majority of investment losses result from such fluctuations,
rather than from stock broker fraud or misconduct.
However,
stock fraud does happen, these are the common forms of
stock broker fraud. (Securities Fraud) |
If you suffer
loss of your savings due to one of the following common forms of
stock broker fraud or misconduct, it is not your fault and you
may have a right to recover losses. Contact a qualified stock fraud
lawyer or attorney immediately if you have experienced any of the
following forms of fraud in dealings with your stock broker:
Unsuitability: This is perhaps
the most common of investor claims. Before making investment
recommendations, your broker has an obligation to attempt to learn
accurate information about your financial needs. Based upon that
information, your broker has an obligation to make only those
investment recommendations that are in line with or suitable for your
needs. Back to list
Overconcentration: Failure to diversify a client's portfolio
can be a form of stock fraud. In order to protect your savings, your
broker should vary the types of stock purchased rather than placing
all your assets in a small number of stocks or a single economic
sector, such as high risk technology stocks. Back to list
Churning: If you notice your broker has bought and sold the
same stock two or more times in a month, you may be the victim of
excessive trading or churning. Each time a stock is bought or sold,
your broker earns a commission, often against your best interests as
an investor. Back to list
Unauthorized Trading: This type of fraud occurs when your stock
broker makes trades on your account without your prior authorization.
Your broker must get your consent before any of your stock is sold or
new stock bought.
Misrepresentation/Omission: Misrepresentation of various forms
is seen in many of the cases detailed on this site. This form of stock
fraud occurs when your broker intentionally gives you misleading
information regarding stocks, such as making guarantees regarding
stock performance or failing to accurately disclose a stock's risk.
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