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Some of the most common types of investment
fraud and abuse include:
Misrepresentations
– Misstating the risks of an investment
Omissions
- Failure to disclose the material risks of a investment
Unauthorized trading
- Making trades without the client's knowledge or consent
or against the client’s instructions
Churning (excessive
trading activity) - Trading stocks for the primary
purpose of generating broker commissions as opposed to increasing
the client's assets
Annuity switching
– A form of churning which involves switching a client
from one annuity to another in order to earn an additional
commission
Unsuitability
- Recommending investments that are clearly unsuitable for
the client. An example of this would be an investment professional
selling a client a variable annuity which would not mature
until after the client's likely lifespan.
Excessive or unsuitable
use of margins - Exposing an investor to substantial
risk through a margin account (a brokerage account with a
line of credit that makes substantial profit for the brokerage
firm)
Failure to diversify
client’s portfolio - Placing too much of
a portfolio in one type of investment, whether it is one stock,
one industry, or one level of risk
To learn more about these
and other types of financial fraud, contact Dozier Law Group.
If you or a member of your family has lost more than $100,000
due to incompetence or fraud by a financial advisor, call
attorney Brad Dozier at (404) 949-5600 for an initial consultation
and case evaluation.
Investment Claims
& Securities Law | Types
of Investment Fraud
Broker
& Financial Advisor Misconduct
Dozier Law Group represents clients in and around the Atlanta
metro area, including Alpharetta, Fairburn, Roswell, Sandy
Springs, Decatur, Lithonia, Druid Hills, Dunwoody, Tucker,
Marietta, Smyrna, Vinings, Duluth, Acworth, Fayetteville,
Marietta, Kennesaw, Lawrenceville, Norcross, Chamblee, Snellville,
Woodstock, Gainesville, Morrow, Carrollton, College Park,
Peachtree City, Riverdale, Newnan, Conyers, Covington, Canton,
Milton, John's Creek, Stockbridge, McDonough, Douglasville and other cities throughout the state of Georgia.
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