Types of Investment Claims
Some of the most common types of investment fraud and abuse include:
Misrepresentations – Misstating the risks of an investment
Omissions - Failure to disclose the material risks of a investment
Unauthorized trading - Making trades without the client's knowledge or consent or against the client’s instructions
Churning (excessive trading activity) - Trading stocks for the primary purpose of generating broker commissions as opposed to increasing the client's assets
Annuity switching – A form of churning which involves switching a client from one annuity to another in order to earn an additional commission
Unsuitability - Recommending investments that are clearly unsuitable for the client. An example of this would be an investment professional selling a client a variable annuity which would not mature until after the client's likely lifespan.
Excessive or unsuitable use of margins - Exposing an investor to substantial risk through a margin account (a brokerage account with a line of credit that makes substantial profit for the brokerage firm)
Failure to diversify client’s portfolio - Placing too much of a portfolio in one type of investment, whether it is one stock, one industry, or one level of risk
To learn more about these
and other types of financial fraud, contact Dozier Law Group.
If you or a member of your family has lost more than $100,000
due to incompetence or fraud by a financial advisor, call
attorney Brad Dozier at (404) 949-5600 for an initial consultation
and case evaluation.