Auction Rate Securities Fraud Attorney

Unsuitable Investments

No one wants to believe that the broker or the brokerage firm that they trusted with their money is dishonest or even capable of fraud. Unfortunately, with the recent crash of the auction rate securities market, it has become clear that some brokers and even brokerage firms cannot be trusted.

The claim that your broker made unsuitable investments is one of the many types of broker misconduct that are highlighted in numerous lawsuits each year. It is your broker’s responsibility to make investment decisions for you based on your risk tolerance. Risk tolerance refers to the amount of risk that you are comfortable taking with your money. When you agreed to work with your broker, he or she assumed the duty to know you and know your risk tolerance.

Brokers who ignore their client’s risk tolerance and make unsuitable investments can be held liable for the financial damage their actions cause a client. An unsuitable investment can be considered:

• An investment that is not consistent with a client’s financial needs.
• An investment in which the client was not made fully aware of the risks involved.
• An investment that a client cannot financially afford to suffer, should the investment fail.

Brokers that commit investment fraud need to be held liable for the damage that they cause. Speak with an auction rate securities lawyer if your broker failed to make you aware of the risks involved before investing.

Call an Auction Rate Securities Lawyer

Schedule your initial consultation and get your legal questions answered by calling the auction rate securities lawyers of Williams Kherkher at 800-220-9341.