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Farah & Farah, P.A.

10 W. Adams Street
Jacksonville, FL 32202
Phone: (800) 533-3555

 

Jacksonville Securities Fraud Law Firm

Stock Broker Fraud in Florida

Shareholder fraud occurs when a company's executives or accountants illegally conceal the debts, earnings, acquisitions, mergers, or other financially relevant transactions of the company. Shareholders buy stock in companies that they feel are going to turn a profit, from which they will benefit. Shareholders do not typically opt to own stock in corporations with massive debt or brewing scandals. For this reason, some large companies have felt the need to conceal their debts, pump up their profits, and downplay their problems. In order to woo investors, they may effectively "sell their souls," attempting to fend off disaster if only a little longer. Several recent high profile cases, including the dramatic collapse of Enron, can be attributed to such actions by large corporations. Unfortunately, misrepresentation of these companies' corporate and financial health has caused many shareholders to lose their investments. For some, this means a loss of retirement or life savings. Deceptive accounting practices and misrepresentation are illegal, and shareholders who have been defrauded have a right to file suit against companies that employ such tactics. If you have lost money, please contact the securities fraud attorneys at Farah & Farah, P.A. today - located in Jacksonville, Florida.

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Investment Fraud in Florida

Investment fraud is committed by stock brokers or analysts who allow conflicts of interest to color their stock reports. It can also refer to situations in which gross incompetence or other factors cause a securities firm's stock reports to contain misleading information. Recently, a slew of brokerage firms have been accused of investment fraud for allowing their investment banking interests to interfere with the accuracy of their stock reports. For example, if a firm wanted to secure the investment banking business of a particular company, they might avoid giving that company's stock a poor rating for fear of losing a potential client. This type of behavior can misdirect investors, often causing them to lose large sums of money on risky investments they believed were sound. Many brokerage firms were recently fined a total of more than a billion dollars by the Securities and Exchange Commission (SEC) for alleged investment fraud. Among those accused of investment fraud are: Merrill Lynch, Salomon Smith Barney, Morgan Stanley, Bear Stearns, Credit Suisse, Deutsche Bank, JP Morgan, UBS Warburg, and several others. Please contact the securities fraud attorneys at Farah & Farah, P.A. today - located in Jacksonville, Florida.

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Insider Information

Insider trading occurs when a person with inside knowledge about a company's dealings uses that information to trade stocks. People who may have access to inside information include brokers, stock analysts, investment bankers, and company employees. It is illegal for anyone with inside information to buy or sell stocks based on their unique perspective or special knowledge. If someone's misuse of inside information has caused you financial harm, please contact the Jacksonville, Florida securities fraud lawyers at Farah & Farah, P.A. today.

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Risky Investments

Risky investments are made in stocks that have the potential to yield high returns, but also have a higher potential for large losses. In fact, in the worst case scenario, all of the original investment may be lost. Responsible stock brokers make sure their clients understand the risk associated with their investment and only proceed if they are willing and able to cope with potential losses. Some examples of risky investments include start-ups and buying on margin. If you were misled into a making a risky investment, please contact the securities fraud lawyers at Farah & Farah, P.A. today - located in Jacksonville, Florida.

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Excessive Trading

Excessive trading on a client's account is called churning. Sometimes stock brokers trade excessively because they want to boost their commission. Not only is this practice unethical but it is illegal as well. Clients can lose money due to unsound timing of trades as well as in the added commission the broker must be paid. If you have been a victim of excessive trading, please contact the stock fraud lawyers at Farah & Farah, P.A. today - located in Jacksonville, Florida.

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Limited Partnerships

Limited partnerships are formed when two or more parties form a business with one or more having a purely financial (as opposed to managerial role). Investments in limited partnerships can be more complicated than regular stock market investments, but this does not mean that limited partnership investors are without legal recourse when problems arise. One the contrary, investors may be able to receive compensation if the limited partnership is found guilty of securities fraud (as was the case with some Prudential limited partnerships in 2002). To learn more, please contact the stock fraud lawyers at Farah & Farah, P.A. today - located in Jacksonville, Florida.

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Brokerage Malpractice

In general, malpractice refers to a situation in which a professional harms a victim by providing substandard services -- meaning that another equally trained professional might have avoided the harm caused to the victim. Brokerage malpractice refers to cases in which stock brokers or analysts issue unfounded, incorrect, deceptive, or otherwise misleading advice to their clients. As a result, the client may makes poor investment choices and lose a significant amount of money. A securities firm that employs a stockbroker guilty of malpractice may bear legal liability. If you have lost money due to brokerage malpractice, please contact the stock fraud attorneys at Farah & Farah, P.A. today - located in Jacksonville, Florida.

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Trading Without Permission

Brokers must make their clients aware of their activities. They are not allowed to make trades on a client's account against the client's will. If a broker makes an unauthorized trade on your account, you may have legal recourse. Please contactthe stock fraud attorneys at Farah & Farah, P.A. to learn more - located in Jacksonville, Florida.

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Conflict of Interest

Because many securities firms conduct both investment banking and stock analysis, the potential for a conflict of interest is always present. Analysts may be tempted or persuaded to give a particular stock a strong evaluation if the company is a client. Similarly, lower ratings may be given to competitors of clients. If this happens, it is known as a conflict of interest, which is illegal. Investors can be hurt by misleading stock reports, often losing large amounts of money because they were deceived or led astray. If you have lost money through stock analyst conflict of interest, please contact the securities fraud lawyers at Farah & Farah, P.A. today - located in Jacksonville, Florida.

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For a free consultation on your investment fraud lawsuit, call our Jacksonville office and speak with one of our Florida securities fraud attorneys at 1.800.533.3555