Stockbrokers are responsible for the exchange of large sums of money every day. Investors put their trust in these individuals to carefully build their portfolios. Consequently, law enforcement officers monitor brokers often to ensure they don’t violate the law.
In some cases, claims of stockbroker fraud involve misunderstandings or general bad luck. No matter the cause of your allegations, you should consider retaining a seasoned fraud attorney right away. A Lincoln stockbroker fraud lawyer can protect your constitutional rights and handle all aspects of your case.
Types of Stockbroker Fraud
The term “stockbroker fraud” covers many types of criminal acts. No two cases are exactly alike. The most common stockbroker criminal cases involve churning, misrepresentation of facts, conversion, and unauthorized transactions. An attorney in Lincoln can shed light on the specific allegations against you in a stockbroker fraud investigation.
Churning
Churning is the act of making high-volume trades that only benefit the stockbroker. Many brokers are paid on commission, meaning a high volume of trades will equate to a bigger paycheck. However, this form of high-volume trading could have disastrous results for an investor.
Misrepresentation of Facts
Some stockbrokers might have ulterior motives for pushing a stock, like an interest in the commission or the stock itself. The misrepresentation of material facts to push an investor into a trade against his or her interests is a type of fraud.
Misrepresentation of material fact is not always an outright lie; it can also be subtle. For example, someone might leave out an essential piece of information that might have swayed the investor’s decision.
Conversion
Sometimes stockbroker fraud is as simple as the conversion of a client’s funds. This type of fraud involves a stockbroker pocketing funds that were meant to be invested on behalf of the client. To explain the loss of this money, a broker could convince the investor that the money was invested but subsequently lost in the market.
Unauthorized Transactions
A stockbroker may only make trades with authorization from the investor. Investing an individual’s money without his or her consent is a form of fraud. This type of fraud might occur in an effort to earn quick commissions. However, an unauthorized transaction could also be accidental. One of our skilled lawyers at Berry Law can help you identify possible defenses depending on the specific charges against you.
Jurisdiction in Stockbroker Fraud Cases in Lincoln
Both state and federal officials are permitted to bring criminal charges for stockbroker fraud. Federal agencies and officials are more likely to pursue cases where there is a lot of money involved, while the state prosecutes lower-value cases. Federal charges tend to come with more severe penalties upon conviction.
Regardless of who prosecutes your criminal case, the investors harmed by your alleged actions may decide to pursue a civil case. These court proceedings are separate, meaning an acquittal in criminal court does not necessarily stop a civil trial. A stockbroker fraud attorney in Lincoln can provide useful guidance during an investigation and help you determine who is prosecuting your case.
Speak with a Lincoln Stockbroker Fraud Attorney Today
Every allegation of fraud against a stockbroker should be taken seriously. Not only do these allegations carry steep criminal consequences, but they could also do substantial damage to your professional reputation.
Let a Lincoln stockbroker fraud lawyer help you defend yourself against accusations of wrongdoing. To get started, set up a confidential consultation with a legal professional at Berry Law right away.