When Should I Sue my Broker and How Do I File a Claim?

1. You should sue your broker if they make unsuitable recommendations that result in losses.  Even if you have gains in other securities, you have a right to file a Claim for losses suffered.

2. You should sue your broker if they recommend frequent trading in your account.

3. You should sue your broker if they recommend non-traded securities, like REITs and private placements.

4. You should sue your broker if they recommend inverse and leveraged products that bet the market will drop.

5. You should sue your broker if they recommend variable annuities with high commissions and up-front costs.

6. You sue your broker for losses by filing a claim with FINRA (the Financial Industry Regulatory Authority).  If you suffered losses, the Mark Tepper Law Firm is offering a FREE case evaluation to determine whether your broker’s recommendations were unsuitable for your investment or retirement needs. To initiate the process, you can contact Attorney Mark A. Tepper by sending an email to askmark@marktepper.com or calling 954-704-2310. If the claim is accepted it will be taken on a contingency basis, although you may be responsible for filing and expert fees.

7. LPL Financial has agreed to a $3 million fine to settle allegations it ignored warning signs of suspicious transfers of funds and failed to adequately supervise two brokers who siphoned millions of dollars from clients into accounts the brokers controlled.

Don’t be Hesitant to Sue your Broker

1. If you have losses in your account from unsuitable broker recommendations you have a claim for recovery.

2. Brokers try to convince their investors not to sue by:

• a) Blaming the customer for the losses because the customer agreed to the purchase when recommended.  This is not a valid reason as an investor cannot be held liable for agreeing to an unsuitable recommendation;

• b) Telling the customer they have not lost until they sell the unsuitable stock; or

• c) Promising to make up the loss with new recommendations.

3. The underlying truth is that brokers have a duty to only make suitable recommendations whether or not the customer consents to them.  This is true, whether or not the investor is sophisticated.

You are not legally responsible for agreeing to an unsuitable recommendation. The broker is responsible for those recommendations.