Not every investment loss results from broker misconduct. However, when an investor's losses result from unsuitable recommendations, fraud, misrepresentions, excessive trading, unauthorized trades, failure to follow instructions, or other stockbroker misconduct, rather than simply the luck of the market, it is often worth pursuing a claim against the broker or other financial advisor.

The best way to determine whether you may have a claim for stockbroker misconduct is to talk to a lawyer who is experienced in representing investors with complaints against their brokers. Many people with good claims for broker misconduct fail to recover their money simply because they incorrectly decide, without qualified advice, that their losses are their own fault or that their claims will fail for one reason or another.

These investors may think, for example, that it is too late to bring their claims for stockbroker misconduct or that a document that they signed may bar their recovery. They may blame themselves for not being more careful, rather than their broker's misconduct. They may think that, before they talk to a lawyer, they should organize their own paperwork. They procrastinate and agonize over their losses, but never recover them, because they neither pursue their own claims, nor seek appropriate help.

Sometimes such people do not know how to find a lawyer who is experienced in representing investors in stockbroker misconduct cases. Sometimes they worry that they will appear foolish. Sometimes they worry about whether it will cost them money to consult a lawyer. All of these fears are groundless. There are many qualified investment lawyers who will give you a free consultation with no obligation to help you determine whether you may have a claim for stockbroker misconduct worth pursuing. After you talk to them, you can decide whether to take your losses, to bring your own claim without help, or to engage a lawyer to represent you.

If you do talk to a lawyer, he will be looking the following important issues:

• Was there some recognized kind of broker misconduct?
• Did the broker's misconduct cause an economic loss?
• How much money can you hope to recover?
• How good is your proof of both the stockbroker's misconduct and the loss?
• Do you have a choice between court and arbitration?
• How much will it cost to pursue your claim for broker misconduct?
• How likely is it that your claims for stockbroker misconduct are barred by time limits?
• Will you be able to collect any award or judgment that you may get?

DISCLAIMER: Vincent DiCarlo, who authored and maintained this site, has entered government service and, as of September 1, 2008, is no longer engaged in the private practice of law.  Therefore, this site is no longer being maintained,  may not be accurate, and should not be relied upon.  It is not now and was not ever intended as legal advice.  It is being provided for historical purposes, and for the benefit of those lawyers who are capable of independently verifying the information and judging the opinions in it, and then reaching their own conclusions.  You are strongly advised to consult qualified legal counsel before adopting any of the ideas or suggestions in this material, which may or may not be applicable in your jurisdiction or to your specific situation, and may no longer be accurate or prudent in any case.  The opinions and statements at this site were solely those of the author.  They were not and are not those of, nor were they nor are they made on behalf of, any agency of government or anyone else.

Copyright © 1998-2008 Vincent DiCarlo