Securities Fraud and Mismanagement

Attorney and Counselor at Law

303-300-5022 / 844-253-5858 Toll Free

Did the actions/inactions of my broker fall below the required standard of care?

We’ll tell you, for FREE.

With the substantial losses incurred by the bond market in the last two months, many investors are asking whether they have legal recourse for these bond losses.  In terms of legal recourse for bond losses, there are several options that are available to investors.  These include class actions, group actions and individual lawsuits.  While these options might not be available to all investors, there are undoubtedly investors who have suffered losses who are not aware of these options.

A common area of fraud that will likely be revealed as more investors begin to question bond losses is the suitability of the bonds recommended.  Brokers and advisors can only recommend “suitable” investments to their investors.  This means investments that are consistent with the investor’s tolerance for risk, need for liquidity, investment objectives and level of sophistication.  A significant temptation exists to recommend unsuitable investments from heightened commissions to pressure from superiors for investment banking arrangements.

While most brokers and advisors have recommended bonds as conservative, income producing investments, some bonds can be very high risk.  Bonds labeled “high yield” or “high income” may not sound like speculative investments to many investors, but that is exactly what many of them are.  Losses in such investments by conservative or moderate investors are recoverable as suitability violations.  Such investors are entitled to recourse for such losses.

Many investors feel embarrassed that they allow such things to happen to them.  Investors should not feel embarrassed.  A common thread of brokerage advertisements is the attempt engender trust in the brokerage.  Investors should not have to watch every step their advisors take because in light of the promises contained in such advertisements.  If you have lost more value in your portfolio than you were led to expect, you should speak to an attorney.  Please call 303-300-5022 for a free consultation.