FREE INITIAL CONSULTATION WITH ATTORNEYS WHO CAN HANDLE YOUR SECURITIES, COMMODITIES AND INVESTMENT PROBLEMS

The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and investment law matters and constantly strives to secure the most favorable possible result. Mr. Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case.

For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.

Dec 13, 2022

Elizabeth Liechty of Lincoln Financial Advisors Corporation

DID ELIZABETH ANN LIECHTY CAUSE YOU INVESTMENT LOSSES? Elizabeth Liechty Of Lincoln Financial Advisors Corporation Has 2 Customer Complaints For Alleged Broker Misconduct Who is Elizabeth Liechty of Lincoln Financial Advisors Corporation? Elizabeth Liechty (CRD #3215809) who is currently registered with Lincoln Financial Advisors Corporation and located in Annapolis, Maryland is a subject of one of our many securities industry sales practice abuse investigations.   Elizabeth Liechty Customer Complaints Eli Buchman has been the subject of 3 customer complaints that we know about, which were filed to recover investment losses. One of Eli Buchman’s customer complaints resulted in an Award in favor of the investor. Two of Eli Buchman’s customer complaints were denied and, to date, the customers have not taken any further action. Allegations Against Elizabeth Liechty A sample of the allegations made in the FINRA reported arbitration claim settlements and/or pending complaints for investment losses are as follows: Elizabeth Liechty Red Flags & Your Rights As An Investor Of course, Elizabeth Liechty did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Elizabeth Liechty at Lincoln Financial Advisors Corporation on alert to review carefully the activity and performance of their accounts and question whether Elizabeth Liechty has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at Lincoln Financial Advisors Corporation also raises questions about the brokerage firm’s supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At Lincoln Financial Advisors Corporation Due To Elizabeth Liechty If you have questions about Lincoln Financial Advisors Corporation and/or Elizabeth Liechty and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Dec 13, 2022

Elizabeth Knier formerly with Merrill Lynch, Pierce, Fenner & Smith Incorporated

DID ELIZABETH KNIER CAUSE YOU INVESTMENT LOSSES? Elizabeth Knier Formerly With Merrill Lynch, Pierce, Fenner & Smith Incorporated And Edward Jones Has A Customer Complaint For Alleged Broker Misconduct Who is Elizabeth Knier formerly with Merrill Lynch, Pierce, Fenner & Smith Incorporated? Elizabeth Knier (CRD #6419045) who was formerly registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated and located in San Mateo, California is a subject of one of our many securities industry sales practice abuse investigations.  Prior to Merrill Lynch, Pierce, Fenner & Smith Incorporated, Elizabeth Knier was associated with Edward Jones and other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems. Elizabeth Knier Customer Complaint Elizabeth Knier has been the subject of at least one customer complaint that we know about, which was filed to recover investment losses. The allegations made in the FINRA reported customer complaint for investment losses were failure to follow customer’s instructions related to mutual funds. Elizabeth Knier customer complaint was settled in favor of the investor. Elizabeth Knier Red Flags & Your Rights As An Investor Of course, Elizabeth Knier did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Elizabeth Knier at Merrill Lynch, Pierce, Fenner & Smith Incorporated and Edward Jones on alert to review carefully the activity and performance of their accounts and question whether Elizabeth Knier has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at Merrill Lynch, Pierce, Fenner & Smith Incorporated and Edward Jones also raises questions about the brokerage firm’s supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At Merrill Lynch, Pierce, Fenner & Smith Incorporated Due To Elizabeth Knier If you have questions about Merrill Lynch, Pierce, Fenner & Smith Incorporated, Edward Jones, and/or Elizabeth Knier and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Nov 2, 2022

FINRA Statute of Limitations: A Complete Overview

The FINRA Statute of Limitations applies to claims and disputes that arise under the rules, regulations, or statutes administered by FINRA. Investment brokers have a duty to treat their clients honesty and with integrity. Those who take advantage of, mislead, or steal from their clients shake the investing industry’s foundation. Regrettably, broker misconduct occurs all too often.  You need representation from a FINRA arbitration attorney who has the knowledge, skill, and extensive experience to help you recover your losses if you are a victim of investment broker misconduct. Robert Wayne Pearce and his staff with The Law Offices of Robert Wayne Pearce, P.A., have over 45 years of experience fighting on behalf of investors victimized by broker misconduct. Contact us today to protect your rights.  Key Takeaways Investment brokers have a duty to their clients to be honest and act with integrity. FINRA is a non-profit corporation that works with the Securities and Exchange Commission to protect investors from brokerage firms’ wrongdoing. You need representation from a FINRA arbitration attorney who has the knowledge, skill, and extensive experience to help you recover your losses if you are a victim of investment broker misconduct. Investors aggrieved by their broker must understand that they do not have six years to file a court claim – in many instances, state statutes of limitations are much shorter than FINRA’s arbitration eligibility time frame. Filing your claim as soon as possible is the best way to protect your legal rights – if you suspect that you lost money in the market because of broker fraud, negligence, or misconduct. What Is FINRA? FINRA is an acronym for Financial Industry Regulatory Authority. FINRA is a self-regulating organization or SRO. As an SRO, FINRA is a non-profit corporation that works with the Securities and Exchange Commission to protect investors from brokerage firms’ wrongdoing.  FINRA offers professional examinations that certify applicants as investment brokers. It also provides continuing education programs to investment professionals to promote fairness and transparency in the securities markets.  FINRA has the authority to make rules and regulations that govern broker-investor relationships. It takes action to discipline brokers guilty of misconduct. Additionally, FINRA educates investors about their investment goals, strategies, and safe investing. What is the FINRA Statute of Limitations? FINRA’s procedural rules indicate that investors have six (6) years to file a claim for arbitration with FINRA. The six-year period starts when the event that gives rise to the legal claim occurred. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037. Note: FINRA will dismiss any claim that FINRA decides missed the eligibility deadline. The arbitration panel will rule on eligibility if the parties disagree on whether the eligibility period elapsed. Do not delay filing. Speak with a FINRA lawyer about any questions about your arbitration claim. FINRA tolls, or stops, the eligibility period if the parties file the case in court. Moreover, FINRA’s procedural rules state that courts will toll the statute of limitations when the case remains in FINRA’s jurisdiction. Why Does FINRA Have a Statute of Limitations? There are a number of reasons why FINRA imposes a statute of limitations on investor claims. The first is to ensure that evidence related to the claim can still be reasonably obtained. This ensures that investors don’t wait until it’s too late to pursue their claim, and also protects brokerages from false or fraudulent accusations brought years after the events in question. In addition, FINRA’s statute of limitations helps to protect the integrity and reliability of its arbitration process. By ensuring that claims are brought within a reasonable timeframe, FINRA is able to accurately and fairly assess all evidence related to an investor claim in order to render an informed decision on their case. FINRA offers arbitration and mediation services to investors who file a complaint against their broker or brokerage firm. The victimized investor must file their claim with FINRA’s arbitration board within a specified period of time. The investor contemplating pursuing a legal cause of action for their losses should be aware of other deadlines that affect their claim. FINRA Statute of Limitations Concerns FINRA’s arbitration eligibility rules are distinct from federal or state statutes of limitations. Investors aggrieved by their broker must understand that they do not have six years to file a court claim. In many instances, the statutes of limitations are much shorter than FINRA’s arbitration eligibility time frame. Section 10(b) of the Securities and Exchange Act of 1934 and its regulations grant investors the right to sue their broker or advisor for fraud or any other unfair practice. Section 10b and its regulations found at 17 C.F.R. 240.10b-5 have a two-year statute of limitations.  Under these rules, the two-year statute of limitations starts when the investor discovers the fraud or no more than five years after the alleged fraud occurred. The time when the investor discovered the fraud is essential to understand. Otherwise, you might unwittingly allow the statute of limitations to run out before having the chance to file your claim. The statute of limitations starts when the investor knew or should have known about the fraud.  You must understand your investments and how they work so you can uncover evidence of fraud as soon as possible. If you are unsure if you are the victim of fraud, you must contact a knowledgeable and reputable securities attorney to protect your rights and investment. State Statutes of Limitations Some states will allow you to file a lawsuit in state court for a violation of state law. Filing in state court might be the better option for an aggrieved investor. Statutes of limitations for state law claims could be as short as two years.  How Long Do I Have to File a Claim Against My Broker? Filing your claim as soon as possible is the best way to protect your legal rights. Simply because FINRA agreed to arbitrate a claim within six years does not mean you should wait six years to file. Instead, you should be...

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Jun 27, 2022

Bryan Rigg of Cantella & Co., Inc.

DID BRYAN M. RIGG CAUSE YOU INVESTMENT LOSSES? Bryan Rigg Of Cantella & Co., Inc. And Formerly With Broker Dealer Financial Services Corp. Has 2 Customer Complaints For Alleged Broker Misconduct Who is Bryan Rigg of Cantella & Co., Inc.? Bryan Rigg (CRD #5117040) who is currently registered with Cantella & Co., Inc. and located in Dallas, Texas is a subject of one of our many securities industry sales practice abuse investigations.  Prior to Cantella & Co., Inc., Bryan Rigg was associated with Broker Dealer Financial Services Corp. and other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems. Bryan Rigg Customer Complaints Bryan Rigg has been the subject of 2 customer complaints that we know about, both of those complaints were filed in the last year to recover investment losses. Both of Bryan Rigg’s customer complaints were denied and, to date, the customers have not taken any further action. Allegations Against Bryan Rigg A sample of the allegations made in the FINRA reported arbitration claim settlements and/or pending complaints for investment losses are as follows: Mismanagement of client’s accounts holding exchange traded funds. Failure to manage account is directed. Bryan Rigg Red Flags & Your Rights As An Investor Of course, Bryan Rigg did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Bryan Rigg at Cantella & Co., Inc. and Broker Dealer Financial Services Corp. on alert to review carefully the activity and performance of their accounts and question whether Bryan Rigg has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at Cantella & Co., Inc. and Broker Dealer Financial Services Corp. also raises questions about the brokerage firms’ supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At Cantella & Co., Inc. Due To Bryan Rigg If you have questions about Cantella & Co., Inc., Broker Dealer Financial Services Corp., and/or Bryan Rigg and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Mar 4, 2022

James Thomas Booth Formerly With LPL Financial

UPDATED ON: December 4, 2020 DID JAMES THOMAS BOOTH CAUSE YOU INVESTMENT LOSSES? James Thomas Booth Formerly With LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co.Has 30 Customer Complaints For Alleged Broker Misconduct In the Past 2 Years Who is James Thomas Booth Formerly With LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co. James Thomas Booth (CRD# 1906145) who was registered with LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co. and located in Norwalk, Connecticutis a subject of one of our many securities industry sales practice abuse investigations.  Prior to LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co., James Booth was registered with 3 other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems. LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co. Broker Misconduct In his career, James Booth has been the subject of 36 customer complaints that we know about, 30 of those complaints were filed in the last year to recover investment losses. All of James Booth’s recent customer complaints were settled in favor of investors. There is currently 1 pending customer complaints filed against James Booth’s former employer Cadaret, Grant & Co. for investment losses caused by his alleged misconduct. Allegations Against James Booth The allegations made in the last 30 FINRA reported arbitration claim settlements and pending complaints for investment losses arise out of an alleged Ponzi scheme.  James Booth was indicted and pled guilty to one count of securities fraud. In addition, he has been enjoined and/or permanent barred from acting as a securities broker for his alleged misconduct. According to FINRA,  James Booth consented to the permanent bar sanction, without admitting or denying the allegations, for converting at least $1,000,000 of  investor funds from multiple customers who gave him funds to invest on their behalf, however, he allegedly deposited the funds into an account he controlled and, used the funds for his personal use. James Booth Red Flags & Your Rights As An Investor The allegations made by customers are red flags which should put all current and former customers of James Booth at LPL Financial, Invest Financial Corp. and Cadaret, Grant & Co. on alert to review carefully the activity and performance of their accounts and question whether James Booth has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at LPL Financial, Invest Financial Corp. and Cadaret, Grant & Co. also raises questions about supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co. If you have questions about a LPL Financial, Invest Financial Corp. and Cadaret, Grant & Co. and/or James Booth and the management or performance of your accounts please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889 or locally at 561-338-0037.

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Jan 20, 2022

Jeffrey Still of NYLife Securities LLC

DID JEFFERY W. STILL CAUSE YOU INVESTMENT LOSSES? Jeffery W. Still of NYLife Securities LLC Has One Customer Complaint For Alleged Broker Misconduct Who is Jeffery W. Still of NYLife Securities LLC? Jeffery Still (CRD #6040892) who is currently registered with NYLife Securities LLC and located in Granby, Massachusetts is a subject of one of our many securities industry sales practice abuse investigations. Prior to NYLife Securities LLC, Jeffery Still was associated with other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems. Jeffery Still Customer Complaint Jeffery Still has been the subject of at least one customer complaint that we know about. The allegations made in the FINRA reported customer complaint for investment losses were that the claimant alleges that a financial plan rifle with unsuitable, high commission products was created for him. Jeffery Still’s customer complaint was settled in favor of investors. Jeffery Still Red Flags & Your Rights As An Investor Of course, Jeffery Still did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Jeffery Still at NYLife Securities LLC on alert to review carefully the activity and performance of their accounts and question whether Jeffery Still has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at NYLife Securities LLC also raises questions about supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At NYLife Securities LLC If you have questions about NYLife Securities LLC and/or Jeffery Still and the management or performance of your accounts please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Jan 20, 2022

Michael Norman of NYLife Securities LLC

DID MICHAEL ANDREW NORMAN CAUSE YOU INVESTMENT LOSSES? Michael Andrew Norman formerly with NYLife Securities LLC Has 3 Customer Complaints For Alleged Broker Misconduct Who is Michael A. Norman formerly with NYLife Securities LLC? Michael Norman (CRD #2092589) who was formerly registered with NYLife Securities LLC and located in Reno, Nevada is a subject of one of our many securities industry sales practice abuse investigations.   Michael Norman is no longer employed with NYLife Securities LLC since he was permanently barred by FINRA from further association with any member firm were allegedly not cooperating with an investigation into allegations that he loaned money to a customer, so that the customer could purchase securities. NYLife Securities LLC Broker Misconduct In his career Michael Norman has been the subject of 3 customer complaints that we know about, one of those complaints were filed in the last 2 years to recover investment losses. Two of Michael Norman’s 3 customer complaints were settled in favor of investors. The other customer complaint filed against Michael Norman’s former employer NYLife Securities LLC for investment losses caused by his alleged misconduct was denied by the company and the customer is not yet taken any further action. Allegations Against Michael Norman A sample of the allegations made in the FINRA reported arbitration claim settlements and pending complaints for investment losses are as follows: Customer alleged that Michael Norman made an unsuitable recommendation to invest in a variable annuity due to the mortality and expense and investment protection of fees incurred over the life of the product. Customer alleged that Michael Norman misrepresented the rate of return, failed to disclose associated fees, and further provided unsuitable investment advice to make a mutual fund transaction. Customer alleged that Michael Norman failed to adequately disclose the annual fees and surrender charges associated with a variable annuity transaction. Further, that the investment was an unsuitable one in light of his investment profile, liquidity needs. Michael Norman Red Flags & Your Rights As An Investor Of course, Michael Norman did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Michael Norman at NYLife Securities LLC on alert to review carefully the activity and performance of their accounts and question whether Michael Norman has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at NYLife Securities LLC about Michael Norman also raises questions about its supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At NYLife Securities LLC If you have questions about NYLife Securities LLC and/or Michael Norman and the management or performance of your accounts, and, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Jan 20, 2022

Richard Rokala of The Oak Ridge Financial Services Group, Inc

DID RICHARD WILLIAM ROKALA JR CAUSE YOU INVESTMENT LOSSES? Richard William Rokala Jr with The Oak Ridge Financial Services Group, Inc. Has 3 Customer Complaints for Alleged Broker Misconduct in the Past 2 Years Who is Richard W. Rokala Jr with The Oak Ridge Financial Services Group, Inc.? Richard Rokala (CRD #2646330) who is currently registered with The Oak Ridge Financial Services Group, Inc. and located in Golden Valley, Minnesota is a subject of one of our many securities industry sales practice abuse investigations.   Prior to The Oak Ridge Financial Services Group, Inc., Richard Rokala was associated with Dougherty & Company, LLC and 5 other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems. The Oak Ridge Financial Services Group, Inc. And Dougherty & Co., LLC Broker Misconduct In his career, Richard Rokala has been the subject of 3 customer complaints that we know about, all of those complaints were filed in the last 2 years to recover investment losses. All of Richard Rokala’s 3 customer complaints were settled in favor of investors. Allegations Against Richard Rokala A sample of the allegations made in the FINRA reported arbitration claim settlements and pending complaints for investment losses are as follows: Claimants alleged unsuitable investment recommendations relating to over-the-counter stocks. The claimant alleges churning, unauthorized trading, unsuitable investment recommendations, and negligence relating to investments in corporate and municipal bonds, common stocks, and exchange-traded funds. The claimant alleges churning, unauthorized trading, unsuitable investment recommendations, and negligence in connection with the bond and stock transactions. Richard Rokala Red Flags & Your Rights as An Investor Of course, Richard Rokala did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Richard Rokalaat The Oak Ridge Financial Services Group, Inc. and Dougherty & Company, LLC on alert to review carefully the activity and performance of their accounts and question whether Richard Rokalahas engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at The Oak Ridge Financial Services Group, Inc. and Dougherty & Company, LLC also raises questions about supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At The Oak Ridge Financial Services Group, Inc.  And Dougherty & Company, LLC If you have questions about The Oak Ridge Financial Services Group, Inc., Dougherty & Company, LLC and/or Richard Rokalaand the management or performance of your accounts please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Dec 15, 2021

Announcing 2021 Winner – Robert Wayne Pearce Investor Fraud Awareness Scholarship

As promised, today we are announcing the 2021 winners of the Robert Wayne Pearce Investor Fraud Awareness Scholarship. Over the course of the year, we received applications from over 30 students from schools around the country who all wrote quality essays about the dangers of investment fraud and how we can protect ourselves. It was a difficult decision to select just one student winner and so, in addition to the grand prize of $2,500, we have selected 5 other students who are being awarded consolation prizes of $100 each for their efforts and sharing their thoughts on investment fraud and how to protect ourselves. The winner of the $2500 scholarship is Karen Simpson, a student at Palm Beach State College, who wrote, among other things: Investment fraud is a very real and serious problem that happens more than you may realize. But it doesn’t have to scare you away from investing your money in fear of losing it. Learning about the different types of investment fraud and how to protect yourself from fraud, before you decide to invest, is extremely important! You could not only experience financial loss but suffer compromised identity, damaged credit, and emotional issues including rage, frustration, and fear. *** Knowledge is power, and so I also recommend you educate yourself by learning about general nature, mechanics and risks of different types of investments before you start investing. I find an excellent starting point to educate myself is Investopedia, www.investopedia.com. You can also find specific financial information, including, annual reports, prospectuses and offering circulars about companies recommended to compare what you were told about a recommended investment by searching the U. S. Securities and Exchange Commission Edgar website for information, www.sec.gov/edgar/search-and-access.  *** The easiest way to protect yourself is to use common sense, look for the red flags and ask questions. Follow a strict check list of do’s and do nots, if it sounds too good to be true, in most cases, it is. If you notice any red flags about an investment, avoid it, as well as the person making the recommendation. That “High Guaranteed Returns” pitch they love to give, don’t believe it. Every investment carries some degree of risk, which is generally reflected in the rate of return you are promised. The higher the return, the higher the risk! The winners of the $100 consolation prizes are as follows: India Bartram of the University of Syracuse, Syracuse, New York Jacob Paul of Villanova University –Charles Widger School of Law, Villanova, Pennsylvania  Kylie Fay of the University of South Alabama, Mobile, Alabama Natalia Capella of the University of Tennessee, Knoxville, Tennessee Rafael Whalen of John Paul The Great Catholic School, Escondido, California We thank all of the other applicants for their efforts, as well, and announce that the next scholarship to be awarded December 15, 2022 will be given to the student who writes the most thoughtful essay about whether they believe the Robinhood Markets, Inc. (“Robinhood”) Investment App is a good tool for novice investors or just game to take advantage of them and make money for the stock brokerage firm. We are interested in learning whether you think Robinhood platform is living up to the legend of Robinhood, who took from the rich and gave to the poor!

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Jul 9, 2021

Excessive Buying and Selling of Securities to Generate Commissions Is Called Churning – Is It Happening to You?

Many people often ask, Is churning illegal? The answer is yes. SEC regulations and FINRA rules prohibit the practice of making excessive purchases or sales of securities in investor accounts for the primary purpose of generating commissions, known as churning. Despite the illegality of churning, FINRA filed 190 arbitration actions for the year of 2020 through the end of December against brokers accused of the practice. If you suffered losses in your investment account as a result of excessive trading, contact a churning fraud lawyer to determine whether you are entitled to recover compensation.  What Is Churning in Finance? Churning, also known as excessive trading, takes on a new meaning in the financial industry that doesn’t have anything to do with butter. Excessive trading occurs when a broker makes multiple trades in a customer’s investment account for the primary purpose of generating high commissions. Churning often results in significant losses for investors. The SEC’s Regulation Best Interest, or Reg BI, establishes a standard of conduct for broker-dealers and their employees when recommending investments to retail customers. Reg BI requires brokers to act in the customer’s best interest and not place his or her own interests ahead of those of the investor. Churning is almost never in the best interest of the investor—even those with aggressive trading strategies. Signs Your Advisor Is Churning in Your Investment Account Churning stocks leads to substantial investor losses, especially in situations where it lasts for a long period of time. Many times, investors fail to recognize the indicators that their broker committed the crime of excessive trading until it is too late. There are a number of cautionary signs to look out for when you fear your financial advisor is excessively trading in your account. Unauthorized Trades Unauthorized trading occurs when a broker trades securities in your investment account without receiving prior authorization. If you have a discretionary investment account, your financial advisor has authorization to make trades in your account without seeking your approval for each transaction; however, your broker is still bound by the best interest standard. Excessive trading can be more difficult to detect with a discretionary account. Numerous unauthorized trades appearing on your account statement is a cause for concern. To recognize these transactions, you should review your account statement on a monthly basis and verify the information provided. If you observe unauthorized trades on your account statement, notify your broker and broker-dealer immediately.  Unusually High Trade Volume A high volume of trading activity in a short period of time can signify churning, especially for investors pursuing a conservative investment strategy. Pay special attention to transactions involving the purchase and sale of the same securities over and over. Attorney Robert Pearce has over 45 years of experience representing clients whose brokers’ misconduct caused financial losses. Mr. Pearce’s extensive experience enables him to recognize indicators of churning immediately and prove the amount of damages you suffered as a result of your broker’s misconduct.  Excessive Commission Fees Unusually high commission fees appearing on your account statement is another indication of excessive trading. If the commission fees jump significantly from one month to the next, or if one segment of your investment portfolio consistently generates higher commissions than any other segment, there is a chance your broker is churning your account. Account statements do not typically include fee amounts charged for each individual transaction. Thus, do not hesitate to contact your broker-dealer to request an explanation of the commissions charged to your account. If you feel you are being charged excessive fees in your investment accounts, contact The Law Offices of Robert Wayne Pearce, P.A., to discuss your options.  Contact Our Office Today for a Free Consultation Churning in the financial industry can result in monetary sanctions and even disqualification from the financial industry in extreme cases. The practice involves the manipulation and deception of investors that entrust their brokers to act in their best interest, warranting severe punishment. Robert Wayne Pearce has handled dozens of churning cases and can provide a complete review of your account statements to determine whether excessive trading occurred. Additionally, The Law Offices of Robert Wayne Pearce, P.A., employs experts that can perform a churning analysis of the trading activity in your account to establish concrete evidence that the practice occurred. We have the experience, expertise, and commitment to obtain the damages you deserve. Contact our office today for a free case evaluation.

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