Practice FAQ’s

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Can You Claim Against Your Broker or Financial Advisor For Your Investment Losses?

Yes! In many cases you can. If you trusted a brokerage firm or financial advisor to manage your financial assets, and you thereafter experienced losses due to their misconduct or negligence, you may be able to recover some or all of your losses. The financial services industry is fraught with conflicts of interest and rife with fraud. Every year, countless investors fall victim to negligent or unscrupulous practices. The experienced lawyers at Kantas & Associates help investors recover their investment losses.

It is worth noting here that many brokerage firms include such words as “waiver” or “indemnify” in their brokerage account agreements in an attempt to scare off customers from filing claims. Do not despair. These scare tactics are generally unenforceable and can themselves be a violation of FINRA rules. You have rights! Contact us today to learn more.

Securities Arbitration and Litigation Causes of Action

Each case Robert Kantas examines has its own unique conditions and circumstances. However most investor securities fraud cases are built on one or more of the following common causes of action. If you believe you have a cause, contact us today to discuss your case.

Churning (Excessive Trading)

“My broker was buying and selling stocks in my account all the time.” “My mailbox (email box) was always full of these little slips of paper (trade confirmations).” “Often I was not even aware of all the trading going on in my account.” “My broker said he had a “trading strategy” and that is why there was so much trading in my account.”

Misrepresentations and Omissions

“My broker told me there was no way I could lose money on this investment.” “My broker told me this was a “low risk” investment.” “My broker failed to tell me about any of the risks of this investment.” “My broker told me that my returns were guaranteed.”

Unsuitable Investments

“My stockbroker put me into investments that were just too risky for me.” “I told my broker that I did not want a lot of risk in my portfolio.” “My stockbroker knew that I was retired and that I could not afford to take a lot of risk.”

Violation of State or Federal Securities Law

State and federal securities laws cover a wide range of violations, including Ponzi and pyramid schemes, insider trading, embezzlement, and falsifying documents.

Breach of Fiduciary Duty

“A “fiduciary” is one who has the legal duty to act in the best interest of another. ”

Negligence

“Even honest, professional, and well-intentioned brokers and financial advisors sometimes make mistakes, and those mistakes often rise to the level of negligence. ”

Margin Account Violations

“My broker did not explain that I could lose so much money so quickly by trading on margin.” “My brokerage firm liquidated my account without my knowledge or consent due to something called a margin call.” “My brokerage firm sold all of my securities and now says I owe them money!”

Unauthorized Trading

“My stockbroker was buying and selling securities in my account without my knowledge or consent.”

Selling Away

“My stockbroker told me to make my check (or wire) payable to him or XYZ company, and not to my brokerage firm.”

Failure to Supervise

“Brokerage firms have an affirmative duty to supervise their stockbrokers and financial advisors, and they can be held responsible for losses sustained if they fail to do so.”

Alternative Investment Losses

“Unsuitable or high risk investments, often known as alternative investments, including, but not limited to: Real Estate Investment Trusts (REITs), oil and gas limited partnership investments (also known as MLPs), private placements, and a whole host of others, may have caused substantial losses in your portfolio.”

Securities Industry Employment Disputes

“Kantas & Associates also represents securities industry professionals in their employment disputes.”

Commercial Litigation

“Litigating disputes between commercial entities can be complex and time intensive. Kantas & Associates is experienced in an array of commercial litigation in and out of the investments and securities industry, such as partnership disputes, business “divorce” cases, shareholder actions, and the like. ”

Other Potential Claims:

Affinity Fraud
Annuities (Almost always bad investments!)
Breach of Contract
Elder Abuse
Failure of Complicated Financial Products or Strategies
Failure to Execute Trades Ordered by the Client
Margin Account Liquidation
Options Trading Losses
Ponzi Schemes
Pump and Dump Schemes
Unregistered Stockbroker or Brokerage Firms

Types of Litigation for Investor Disputes

Most brokerage firm contracts require clients to agree to arbitration in the event of a dispute. This is typically administered through the Financial Industry Regulatory Authority (FINRA), Judicial Arbitration and Mediation Services (JAMS), or the American Arbitration Association (AAA). Alternatives to arbitration include class action lawsuits and court litigation.

While some object to mandatory arbitration, this is often the fastest way to resolve claims against brokerage firms. The average FINRA case is resolved in 16 months. Class action suits typically take 60 months or longer.

Robert Kantas is experienced in litigating investment and securities fraud in court and arbitration. Get in touch today to discuss your claim.

Where Will My Claim Be Filed?

Most brokerage firms include arbitration clauses in their account opening documents. In most cases, these arbitration agreements are legally binding and you have waived your right to sue in a court of law. But all is not lost! Investors have a right to file their claims in arbitration, including the Financial Industry Regulatory Authority (FINRA), Judicial Arbitration and Mediation Services (JAMS), or the American Arbitration Association (AAA) arbitration forums, with FINRA Arbitrators hearing approximately 90% of all customer disputes.

Kantas & Associates has vast experience in all such forums, and holds claim to one of the largest settlements in the history of FINRA arbitration – a case that was settled after a two-week arbitration. Indeed, arbitration is generally less expensive and faster than a court proceeding, with most arbitration cases being resolved in 12-18 months, as compared with several years to resolve the same dispute in a court of law. Also, arbitration is generally a private matter, where your private financial information does not become public.

Where Will My Claim Be Heard?

Assuming your claim is filed in FINRA arbitration, your claim will be heard at the closest FINRA hearing site to where you lived at the time of the loss. FINRA maintains hearing sites all across the United States in virtually every major city, and even has several international sites.