texas investment advisor fraud case

stock,stocks

Stockbrokers, dealers, and advisors often have access to private material. Dealers may not make trades based on this information. Stockbrokers are not psychics and they are not guarantors of investments. Most of the complaints we receive at the SFPO have nothing to do with legitimate Stockbrokers or investment advisors. Stock quotes, portfolio, funds and more. Very vulnerable," said sylvia h watkins Canan, n senior attorney.

Stockbrokers are legally allowed to buy, sell and trade for their clients. Investors trust that their stockbrokers and financial advisors will have their best interests in mind when recommending securities investments and trading on their accounts. Stock option programs are an excellent benefit and, while many technology firms have such programs, Microsoft has a unique ability to generate cash from its program due to its high profits on product sales. Based upon a review of Microsoft's 10Q report available from the SEC , they are on track to take a $15 billion tax deduction for stock option wages this year, much higher than total net income, allowing them to create almost $5 billion in cash in the form of lower taxes on product sales. Stock broker misconduct is another term for stock broker fraud. It is characterized by brokers behaving in dishonest or misleading ways when dealing with clients.

Stockbrokers are usually compensated each time they conduct a transaction for a client. The more transactions a broker makes for a client, the more commission they earn. Stockbrokers also have a duty to disclose important information concerning the recommended investments, including the level of risk associated with each investment. Moreover, brokers generally owe a fiduciary duty of good faith and fair dealing, which means that they are not allowed to recommend unsuitable investments solely because they stand to make a large commission.

customer

Customers who responded to the offer received a catalog and a prepaid merchandise card instead of a credit card. Customers can reduce the risk of delayed execution or execution at a price higher or lower than the price they were expecting by using limit orders. On-line accounts with discount brokers are less expensive but the customer does without the research, due diligence, recommendations, support services and fiduciary relationship of an account with a full service broker.

investors,investor

Investors have been contacting us to determine a course of action at this time of uncertainty over the future of this market. We can be reached at 212-679-6000 to discuss your individual situation. Investors can obtain more information about, and the disciplinary record of, any NASD-registered broker or brokerage firm by using NASD's BrokerCheck. NASD makes BrokerCheck available at no charge to the public. Investors were sent fictitious account statements showing that they were actually making money, when - according to Mr. Winslow - most of the money hadn't been invested.

Investors need to be aware that some of the analyst reports and research reports they receive may contain biased research. The brokerage firm issuing the report may have an undisclosed incentive.

broker,brokers

Brokers also fail to tell investors that any bond, regardless of whether it is a government bond or an AAA rated bond, can lose money if it is not held to maturity. For example, a government bond purchased when interest rates are at five percent will plummet in value if interest rates subsequently rise to seven percent. Brokerage firms bring in immense revenues when companies choose them as their investment bankers, and when they act as underwriters during public offerings. Although Blodget and the analysts under him played no official role in the investment banking side of Merrill Lynch's business, their favorable coverage encouraged businesses to choose and continue to use Merrill Lynch as their investment brokerage. Brokers and fund managers allegedly told investors that even in a worst case scenario, the hedge fund would post losses of no more than five percent a year. In actuality, investors allege they lost a lot of money on Citigroup's hedge fund.

Brokers and investment advisors have several obligations. First, a broker or investment advisor must manage accounts in a manner directly in line with the needs and objectives of the customer, as stated in the authorization papers or as apparent from the customer's investment and trading history.

securities

Securities fraud may be committed by broker/dealers, financial advisor/analysts, corporations, and private investors. Renewed concern over securities fraud arose during the recent telecom bust. Securities fraud encompasses a variety of illegal acts that take place in the securities industry, ranging from stockbroker schemes to insider trading to corporate misstatement of financial information to conceal earnings or debt. Securities fraud falls under the general category of crime called white collar crime. Securities investing is strictly regulated by federal laws aimed at the protection of public and private investors. The rules can be violated in a number of ways that prove detrimental to the individual investor.

Securities fraud, also known as stock fraud or investment fraud, typically involves a stockbroker or brokerage house deceiving an investor for personal gain. The securities fraud lawyers at our Charleston, West Virginia firm handle cases involving various types of securities fraud.