Financial Advisor Misconduct

On Behalf of | June 24, 2020 | 401(k) Mismanagement

Financial Advisor Scams

More than 650,000 registered financial advisors in the United States help manage more than $30 trillion of investible assets. A recent study “The Market for Financial Adviser Misconduct” found that financial advisor misconduct is broader than many realize – 12% of the financial advisors in the United States have disclosure records and 7% have been disciplined for misconduct and/or fraud. That means between 60,000 and 70,000 financial advisors with some type of disciplinary history are stalking an unsuspecting public. The highest incidence has occurred at some of the largest financial advisory firms in the United States. According to the study, more than 1 in 7 advisors at Oppenheimer & Company, Wells Fargo Advisors Financial Network, and First Allied Securities have engaged in misconduct in the past.

As of 2010, 56% of all American households sought advice from a financial professional (Survey of Consumer Finances, 2010). Because so many American households rely on financial advisors for retirement planning, wealth management, and for buying stocks, bonds, and mutual funds, deceitful financial advisors create a volatile, alchemic mix that sadly exposes millions of Americans to wanton financial destruction.

Financial advisors tend to mine for clients at financial planning programs held at a workplace, or retirement and wealth management seminars conducted at hotels and restaurants. Deceitful financial advisors tend to thrive in regions with relatively high incomes and an elderly population. The misconduct appears to be directed both at the wealthy and not-so-wealthy. Defrauding wealthy investors can be profitable since they have more money. The not-so-wealthy tend to be less knowledgeable about investment matters and therefore more vulnerable.

The deceit ranges from churning brokerage commissions and unauthorized trading to unsuitable recommendations. Some of the more recent investment schemes have involved:

  • Puerto Rico Bonds
  • High Yield Securities and Structured Notes
  • Private Real Estate Trusts

How Our Investment Fraud Lawyers Can Help

Our investment fraud lawyers have specific expertise in seeking recovery from these investors in the following areas:

  • Broker-dealer misconduct
  • Investment advisor and financial planner misconduct
  • Securities fraud

If you have been a victim of investment fraud, the sooner you act the better. Contact the financial litigation lawyers at Sanford Heisler Sharp and we will evaluate your case.