Broker/Dealer Mismanagement

South Florida FINRA Arbitration Mismanagement and Negligent Supervision Attorney, Russell L. Forkey, Esq.

Broker/Dealer and account executive mismanagement can take on many forms.  In some circumstances, it can be based upon a continuing fraud or continuing misrepresentations being made to a client to lull the client into a false sense of security or getting the client to authorize a transaction based upon false information.  However, mismanagement usually is set forth in legal theories predicated upon such things as negligence, breach of fiduciary duties or breach of contract.  These types of legal claims are been discussed in other sections of this site.  Please follow the highlighted links if you would like more information on them.

Is it difficult to recover your investment losses if the damage is cause by broker/dealer and account executive mismanagement? The answer to this question is predicated on three general factors. Each of these factors are, in our opinion, equally important and are discussed below.

Factor Number 1:

The most important factor in any type of dispute is the underlying facts of the case. What type of oral and/or physical evidence exists to support your claim. However, many times, the client does not know what evidence is material or irrelevant to the claims made. Additionally, the client usually does not know what type of documentation should be maintained by the other party. Sometimes, the documents that are obtained from the opposing party are just as important as the facts within your knowledge. Many times, it is the documentation received from an opposing party and the examination of adverse witnesses that carries the day.

Factor Number 2:

The second factor to consider is what type of legal claims can be made based upon the facts of the case. It is for this reason that a complete examination of the facts underlying the claims should be made. Only after this is done can it be determined what type of legal claims (causes of action) have a chance of being properly alleged and proven at trial.

For example, Securities and Exchange Commission (SEC), and Financial Industry Regulatory Authority (FINRA) rules and regulations are effective in setting standards by which to determine whether the respondents have been negligent or breach their fiduciary duties to you.  The elements that must be alleged in the statement of claim and proven at trial, to prevail on these types of claims, are either set forth in the relevant rule and regulation, established by court decisions or both.

Factor Number 3:

Factor number 3 is equally important as factors 1 and 2. It should go without saying that the hiring of a qualified legal representative that performs a complete review of the facts, understands the relevant legal requirements and has been there before is critical to enhancing your chances of success. You get once chance to have your matter resolved. Don't sell yourself short.