Individual investors trust their financial advisors more than their primary care physicians, according to a survey conducted by the John Hancock Life Insurance Company. But, do investors, especially seniors, place too much faith in their advisors?
Trust is the foundation of the client/stockbroker relationship, along with a belief that our interests will be protected.
Sometimes, though, misconduct and mismanagement can betray that trust.
Investment Fraud or Stockbroker Fraud
According to CNNMoney, a survey of financial planners by the Certified Financial Planning Board of Standards reports that seniors who become victims of financial abuse lose, on average, about $140,000. Yet, only one in six victimized seniors reports these abuses.
Maybe they are too embarrassed to report their loses. Or, maybe they don’t know where to turn. But, faced with inappropriate losses, investors should know that there are avenues for filing a claim for recovery through an attorney.
One such avenue is the law firm of Mark A. Tepper, P.A., which champions the cause for victims of investment fraud or stockbroker fraud.In more than 35 years as an investor advocate, Fort Lauderdale securities attorney Mark A. Tepper has represented hundreds of clients who,as investors, felt that brokers had betrayed their trust.
“I enjoy the satisfaction of doing the right thing,” he says. “I meet people whose lives have been dramatically changed because of broker misconduct, and a successful claim and recovery can give them back their lives. That’s my reason for doing what I do.”
An experienced counsel, Mr. Tepper has represented hundreds of customers, even taking on giants such as Bank of America, Charles Schwab, Merrill Lynch, Morgan Stanley, Raymond James, Smith Barney, UBS and Wells Fargo.
A member of the Florida, New York and California bars, he is Premier AV®-rated — the highest rating of lawyers in the Martindale-Hubble Law Directory.
Seniors, who frequently are on fixed incomes and depend heavily on investments, can become targets for aggressive money managers promising higher returns through alternative investments.
“Investors should be very wary of aggressive financial advisors who promise stellar returns on investments, while pushing high-fee financial products where commissions, and excessive trading can eventually drain a portfolio,” Tepper advises.
If a broker does not tell you the full story, gives false information or recommends something that isn’t right for you, then that could be misconduct. As a consumer, be alert for and recognize “red flags,” such as unexpected losses in your account. Ask your broker how he or she is compensated, and what are the costs and risks associated with your broker’s recommendations.
Don’t be afraid to ask questions or to expect answers. If the given explanation doesn’t make sense to you, get another opinion. Not every loss is securities fraud. And, not every loss is just bad luck or bad timing, or something the investor simply didn’t understand.
If you believe you are a victim, consult with a competent attorney, so you can understand your legal rights, and make an informed decision. A competent securities attorney can independently evaluate your claim. After a review, you are in a better position to know whether to file a claim based on facts.