Generally, an investment broker has a fiduciary to clients, meaning that a broker has a legal obligation to act in the best interests of clients. A broker can breach this duty by taking advantage of clients in a variety of ways, including guiding clients toward inappropriate investments with fraudulent promises, charging clients various unnecessary fees, or intentionally providing clients with misleading information.
If you believe that you suffered a financial loss because your broker took advantage of your situation, you may have recourse. You may be able to sue the broker and his firm if you can show that that he engaged in practices that were not in your best interests, such as completing investment transactions without your consent, completing investment transactions simply to garner fees, or willfully misleading you about certain investments. A qualified securites attorney can help you determine if the facts of your case against your broker will support a lawsuit.
You can also file a complaint against your broker with the U.S. Securities and Exchange Commission (SEC) if you feel you have been taken advantage of by your broker or his firm. The SEC is a federal government agency that regulates the securities industry and reviews complaints from investors to ensure that there are no violations of securities laws.
If you have further questions about broker misconduct or what actions can be taken if your broker took advantage of you as a client, contact a securities attorney today.