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Securities Fraud in Florida
Insider Information | Risky
Investments | Excessive Trading
| Limited Partnerships
Brokerage Malpractice | Trading
Without Permission | Conflict Of Intrest
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.
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 securities fraud lawyers at Farah & Farah, P.A.
today - located in Jacksonville, Florida.
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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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