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Breach of Fiduciary Duty

At the Investment Loss Recovery Group, we focus on protecting investors. No matter what type of investment, or what type of proceeding, we have the knowledge and the experience to get the job done. It can be difficult to recover from a broker’s fraud or mistakes, but we can help.

Our attorneys are former licensed securities brokers and defense lawyers. That experience gives us insight into the legal and regulatory issues involved in your investment loss claims. It also means we understand how defense attorneys view these claims. We can anticipate their strategies and counter their defenses.

We offer the services and resources of a large firm with the personal attention of a small firm. We work with every client to understand their situation and to develop a strategy for recovery. Whether your case deals with fraud, misconduct, breach of fiduciary duty, or any other investment-related problem, we have the experience and tools to help.

The Investment Loss Recovery Group is dedicated to helping investors who have been harmed. If you suspect your broker or advisor has breached their fiduciary duty and caused you to lose money, contact us today for a free consultation.

Breach of Fiduciary Duty

Many brokers and advisors will provide investors with straightforward and trustworthy advice. Brokers and advisors have a fiduciary duty to their clients. A fiduciary duty means the broker or advisor is ethically and legally required to look out for a client’s best interests. A broker is legally required to disclose specific risks, provide honest advice, and put the investor’s interests before their own. However, not every broker or advisor lives up to their duties.

Breach of fiduciary duty is a serious problem that can harm investors. When investors trust the advice of a broker or advisor, they’re taking it on faith that the broker or advisor is looking out for them. When the broker or advisor is dishonest or double-dealing, it’s easy for an investor to lose their hard-earned money. Investments may be far riskier than the investor anticipated or there may be hidden costs and fees that drain their investment.

Elements of Fiduciary Duty

A duty may be established by the SEC, other Federal agencies, or state-specific organizations that handle securities and other financial instruments. Regardless of the source, a fiduciary duty usually consists of a few elements that govern the broker and investor relationship.

A broker or advisor with a fiduciary duty to a client should give their clients:

  • A duty of loyalty. This means that the broker or advisor should represent the investor’s interests first in any dealings. The broker or advisor should be trustworthy, provide as much information regarding an investment as possible, and offer investments that are best for the investor rather than best for themselves. When brokers or advisors look out for their clients first, they’re fulfilling their duty of loyalty.
  • Due diligence and disclosure. A broker or advisor is expected to provide as much true information as they can about an investment opportunity. There is no such thing as a risk-free investment and brokers or advisors are not expected to know every possible piece of information about a particular investment. However, they are expected to do due diligence and provide investors with clear information and analysis of the investment opportunity.
  • Advice and investments free from conflicts. Brokers and advisors have a duty to prevent and avoid conflicts between their interests and the interests of their clients. Investors rely on brokers and advisors to give them impartial advice that will help them invest wisely. Conflicts can arise when brokers or advisors are offered incentives and payments to recommend particular investments. Investors can be steered away from a prudent path to one of severe losses. It’s a classic breach of fiduciary duty that leads the broker’s interests and the client’s interests to be at odds.

Examples of Breaches of a Fiduciary Duty

The following are a few examples of breaches of a fiduciary duty that harm investors:

  • A broker or advisor engages in trading or use of investment funds when the client has not authorized the transaction.
  • A broker or advisor recommends an investment opportunity to a client based on the broker’s or advisor’s potential commission, not the suitability of the investment.
  • A broker or advisor engages in churning. Churning is a process of making excessive numbers of investments or trades to create commissions for the broker or advisor.

There are many ways for brokers and advisors to engage in illegal and unethical activity that breaches their fiduciary duty. Some are more obvious than others. If you suspect you’ve been harmed by a breach of fiduciary duty, contact our experienced lawyers for guidance.

How Long Do You Have to Take Action Under a Statute of Limitations?

The amount of time you have to bring a claim for a breach of fiduciary duty depends on a number of factors. Where the act took place, what service the broker or advisor was providing, and many other pieces of information are involved.

Regardless of these details, if you suspect a breach of fiduciary duty, don’t wait to take action. The more time you and your lawyer have to work on your case, the better off you’ll be. Even if you think you may have waited too long, it’s still worthwhile to talk to our attorneys. It’s possible that you could still have a valid claim.

If You’ve Been Harmed by a Breach of Fiduciary Duty

If you believe you’ve been harmed by a broker’s or advisor’s breach of fiduciary duty, the following steps can help you protect yourself and your investments:

  • Gather all information related to the potential breach of duty: investment paperwork, statements and communications, current and past information related to the investment, and any other relevant information.
  • Monitor your investments for performance and activity.
  • Speak with a lawyer about next steps. Fiduciary duty laws can vary with location and the nature of the broker’s work. Our attorneys can help you understand what laws apply and how you may be able to recover your investments.

Experienced Securities Attorneys

At the Investment Loss Recovery Group, we have decades of experience investigating and successfully resolving cases where brokers or advisors have breached their duties and harmed their clients. We understand the challenges that investors go through and we know what it takes to investigate and successfully resolve your case.

Breach of fiduciary duty cases can be difficult to unravel, but we can help. Regulations, state laws, and many other issues can be involved. Our experienced attorneys can help you understand what rules are at play and what standards apply. We are ready to review your situation and give you advice about your best legal options for recovery.

If you suspect you’ve been harmed by a breach of fiduciary duty, contact us today for a free consultation.