Brokerage Fraud

While all brokers can commit securities fraud based on individual action or inaction with respect to their clients' investment accounts, it is also possible for an entire brokerage firm to be responsible for securities fraud, or brokerage fraud. In this case, the legal theory is that the brokerage firm was negligent or reckless in failing to properly monitor and/or supervise individual brokers' actions with regard to certain investment accounts, thus resulting in wrongdoing that caused losses for the investors. Brokerage fraud might occur in the full range of individual broker misconduct, including breach of fiduciary duty, misrepresentation, omission, insider trading, churning, ineptitude, and market manipulation. Therefore, if an individual broker who has allegedly committed securities fraud is employed by a brokerage firm, it is likely that the brokerage firm will also be subject to the securities fraud claim brought by a defrauded investor, and potentially will be just as liable as the individual broker.

Fast Facts

  • The SEC is headquartered in Washington, D.C., and has 11 regional offices through the United States.
  • The U.S. is just one of three countries that permit class action securities lawsuits, along with Australia and Canada.

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  • Investment Fraud Attorneys

    Investment fraud can affect anyone who puts his or her faith in a financial professional, broker, or investme...
    • Site: securitieslawfirms.com
  • Promissory Note Fraud

    A promissory note is a written promise to repay a debt.  The promissory note includes the terms of the obligat...
    • Site: securitieslawfirms.com
  • Trading Fraud Law

    According to the Securities Act of 1933, the regulatory practices of the SEC were to ensure investors had appr...
    • Site: securitieslawfirms.com
  • Securities Fraud Lawyers

    When you put your trust and faith in an investment company, investment banking firm, or other pr...
    • Site: securitieslawfirms.com
  • Hedge Fund Fraud

    An overview of how Hedge Fund Fraud happens, laws and regulations from the SEC that are in place, and how to g...
    • Site: securitieslawfirms.com

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