JP Morgan recently reported financial earnings, and it seems like a distant memory that in December 2015, JP Morgan paid a $267 million fine to the SEC.
The SEC Press Release refers to improper disclosures to customers as well as improper efforts by employees of JP Morgan to steer customer investments into proprietary mutual funds and other investments where JP Morgan earned or received additional fees and revenue streams. Suppose you were a customer of JP Morgan between 2010 and 2015. In that case, whether or not you have experienced losses in your accounts, you may wish to closely review and analyze the nature of your relationship and closely scrutinize the recommendations along with the fees and charges in your investment accounts.
Official JP Morgan Investment Loss Investigation
The Investment litigation team has filed a claim on behalf of former JP Morgan clients. The allegations seek to recoup damages for our clients based on improper or self-interested recommendations which may have involved improper fees and other charges to those clients by JP Morgan. Our office continues to investigate the full magnitude of these matters and how they may have directly impacted current and previous JP Morgan customer accounts. Please contact our office if you have any information relating to these or similar issues.
In addition, if you were a customer of JP Morgan or any affiliated business, including JP Morgan Private Bank, between 2010 and 2015 and you have questions about your investment accounts, we are here for You, the Investor. Please contact the Investment Litigation team to schedule a free consultation or to discuss your concerns in more detail with an experienced attorney. Call 1-800-856-3352 to learn more. We do not earn a fee unless we obtain a financial recovery for you.
Investing can be a thrilling and lucrative experience, but there are several pitfalls to avoid. Stock broker fraud is a major concern. It entails lying, stealing, and breaking trust.
The chitchat is something to keep an eye out for, whether you’re shopping around for a new broker or happy with the one you already have. You shouldn’t trust your retirement savings to a broker with a dishonest attitude. Hiring a trustworthy investing firm with a history of success is the greatest method to safeguard your money. Having a competent broker by your side can make the minefield much more manageable. A reliable broker will provide a wide range of services, such as retirement planning and investment guidance, while also minimizing tax implications. A reliable broker should also offer to keep you updated on developments in your field.
You should be able to count on a reliable broker to give you tips on when it’s the right time to invest in various securities. A broker may be held accountable for any illegal trades made by an employee. Know that your broker may not always have your best interests in mind. Suppose a broker fails to disclose an obviously false commission on a trade, for instance. In that case, you may want to retain the services of a securities fraud attorney to safeguard your interests.
Stockbroker fraud typically occurs when a dishonest broker does not tell their client about all of the potential dangers of an investment. You may be entitled to financial restitution if you were a victim. This may involve giving all or some of the money back to the investor.
Brokers are not allowed to make any false statements of significant fact per the Securities Exchange Act of 1934. These may provide data on the company’s past success or warnings about any prospective dangers the business may face.
The Financial Industry Regulatory Authority (FINRA) rules impose a similar obligation on brokers. Requirements established in FINRA Rule 2111 are strengthened by FINRA Rule 2020. Brokers are required to tell their clients anything they know that is “material” to making an informed decision about an investment. It also includes instructions for doing so.
A fact is a material to a transaction if it is significant enough to affect the outcome of the deal. If you find out that a company you were considering investing in has recently been the subject of a government investigation, you might rethink your decision. Similarly, if you have heard about unsuccessful drug trials for a new medication, you might think twice before buying it.
Dishonesty in the performance of a fiduciary duty
As a rule, investors should hold their stockbrokers to a very high standard of care. They have to be reliable and trustworthy and can’t take advantage of their clients. Everyone involved has an obligation to look out for the customer’s best interests and carry out their specific requests.
But even the most honest broker might make a mistake. Occasionally, a client receives a poor investment recommendation and must deal with the consequences. This constitutes a breach of trust and investment fraud.
Excessive commissions, markups, self-dealing, inappropriate margin trading, and inappropriate wrap accounts are all examples of investment fraud. Another possible participant is a brokerage house that heavily advertises its own investment products.
Protecting your rights is essential if you suspect you are a victim of investment fraud. If you need assistance investigating your broker’s financial statements to see if they are honest, hire a reputable stock fraud attorney.
Complete and utter theft
Theft by stock brokers has been widely reported over the years. Brokers and other financial consultants are the perpetrators of these crimes. This group preys on unsuspecting financiers.
Ponzi schemes are the most typical method of broker theft. This program encourages investors to empty their savings and credit card accounts. They are then convinced to put their money into a fake business. This results in the investor receiving a return that is less than the original investment. Because of this, a considerable sum of money is wasted.
When a broker creates a fake account in a client’s name, they are committing outright theft. Once the money has been taken, it is deposited into this account. After that, the broker may request payment from the investor via check and keep the money for themselves. Brokers may also make loans to clients without their knowledge or permission.
To deceive their clients, brokers can easily fabricate a false account statement, manufacture an official-looking letter of authorization, or reroute customer statements to another address. It’s also possible for them to open a bank account under the name of the investment’s issuer.