Broker misconduct and securities fraud take many forms. The result is usually the same: an investor loses money because a trusted professional put personal gain first. Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, helps investors recover losses from every major category of misconduct.
If you have suffered losses, call 1-888-885-7162 for a free consultation.
Our firm has 95+ years of combined attorney experience and a 98% success rate. We are former Wall Street defense lawyers who now represent investors nationwide. Every case is handled on a contingency fee basis, so you pay nothing unless we recover money for you.
Index of broker misconduct and fraud types
The table below links to the main practice-area pages for the types of broker misconduct we see in investor claims. Each page explains the specific misconduct, warning signs, how we build a case, and what you may be able to recover. Use this index as a starting point, then contact us for a free review of your specific situation.
| Type of misconduct | What it means | Canonical page |
|---|---|---|
| Unsuitable investments | Your broker recommended investments that did not match your risk tolerance, age, time horizon, or goals. | Unsuitable investments |
| Churning and excessive trading | Your broker traded your account excessively to generate commissions rather than returns. | Churning and excessive trading |
| Overconcentration | Too much of your portfolio was placed in one stock, sector, asset class, or product. | Overconcentration |
| Unauthorized trading | Your broker made trades without your permission or formal discretionary authority. | Unauthorized trading |
| Misrepresentation and omission | Your broker misstated or hid material facts about an investment or its risks. | Misrepresentation and omission |
| Breach of fiduciary duty | Your advisor put personal or firm interests ahead of your best interest. | Breach of fiduciary duty |
| Failure to supervise | The brokerage firm did not adequately monitor your broker’s conduct. | Failure to supervise |
| Regulation violations | Your broker or firm violated Financial Industry Regulatory Authority (FINRA), Securities and Exchange Commission (SEC), or other industry rules. | Regulation violations |
| Ponzi schemes | Returns were paid from new investors’ money rather than legitimate profits. | Ponzi schemes |
| Private placement fraud | You were sold a Reg D offering that was misrepresented, unsuitable, or fraudulent. | Private placement fraud |
| REIT fraud | You were sold a non-traded or alternative REIT that was unsuitable or overvalued. | REIT fraud |
| Variable annuity fraud | You were sold a high-fee variable annuity that was unsuitable for your needs. | Variable annuity fraud |
| Structured product fraud | You were sold a complex structured note with hidden risks and capped upside. | Structured product fraud |
| Elder financial abuse | A financial professional exploited a senior investor’s trust or cognitive decline. | Elder financial abuse |
| FINRA arbitration | The forum where most investor claims against brokerage firms are resolved. | FINRA arbitration |
The most common claims we handle
While every case is unique, the majority of investor claims involve a core group of misconduct patterns. Unsuitable recommendations top the list. A broker recommends a product that is too risky, too illiquid, or simply inconsistent with the customer’s stated goals. These cases often involve complex products such as leveraged ETFs, structured products, or alternative investments.
Churning and excessive trading are also common. The broker buys and sells securities repeatedly to generate commissions, often leaving the account with little net gain and high transaction costs. Overconcentration occurs when the portfolio is not diversified, exposing the investor to avoidable losses from a single sector or security.
Unauthorized trading, misrepresentation, and failure to supervise round out the most frequent claims.
Signs you may have a claim
Investors often wonder whether their losses are just bad luck or something more. The following signs suggest that your losses may be the result of misconduct rather than ordinary market risk. If several of these apply to you, contact us for a free review.
- Your broker repeatedly recommended products you did not understand.
- Your account statements show heavy trading that you did not expect.
- One stock, sector, or product dominates your portfolio.
- Your losses are much larger than the overall market or a comparable benchmark.
- Your broker discouraged you from asking questions or consulting another advisor.
- The firm has been the subject of regulatory complaints or disciplinary actions.
How this site is organized
This index page connects to the main canonical topic pages on the site. We use the term “types of misconduct” broadly to cover both deliberate fraud and negligent mismanagement. Whether your case involves a Ponzi scheme, a suitability violation, or a supervisory failure, the path to recovery usually begins with a free review.
The common thread behind investor losses
Each type of misconduct has its own details, but most cases share a pattern. A conflict of interest drives the recommendation. The investor lacks critical information. The investment declines, and the broker has already collected a commission or fee.
Understanding this pattern helps investors recognize problems earlier. It also helps us build cases. We focus on proving the broker’s duty, the violation, the causal link, and the dollar impact. Our attorneys have seen this pattern thousands of times across decades of practice.
For example, a churning case and an unsuitable recommendation case are different in theory. Both require us to show that the broker acted in his own interest rather than the client’s. A Ponzi scheme case and a private placement fraud case differ in mechanics. Both rely on proving that the investor was misled about what the investment really was.
Key rules that protect investors
Most misconduct claims rely on well-established rules. FINRA Rule 2111 requires recommendations to be suitable. FINRA Rule 3110 requires firms to supervise their brokers. FINRA Rule 2020 prohibits manipulative, deceptive, or fraudulent conduct.
SEC Regulation Best Interest, effective in 2020, requires broker-dealers to act in the best interest of retail customers when making recommendations.
These rules provide the legal framework for recovery. We use them to show that the broker or firm failed to meet an industry standard and that the failure caused your losses.
How the recovery process works
Regardless of the specific misconduct, the path to recovery generally follows the same stages. The timeline varies with the complexity of the case and the responsiveness of the brokerage firm.
| Stage | Typical duration | What we do |
|---|---|---|
| Free case review | 1–2 weeks | We review your statements and identify the misconduct and damages. |
| Claim development | 2–6 weeks | We gather documents, analyze trading patterns, and calculate losses. |
| FINRA arbitration filing | Within applicable deadlines | We file a Statement of Claim and serve the brokerage firm. |
| Discovery | 2–6 months | We exchange documents, take testimony, and retain experts if needed. |
| Settlement or hearing | 6–16 months | We negotiate a settlement or present your case to an arbitration panel. |
What you can recover
The damages available depend on the facts of the case. Our goal is to put you back in the position you would have been in but for the misconduct.
| Category | Description |
|---|---|
| Net out-of-pocket losses | The actual principal you lost because of the misconduct. |
| Interest and lost opportunity | Compensation for the time your money was unavailable or improperly deployed. |
| Rescission | Return of your original investment, treating the transaction as if it never happened. |
| Attorneys’ fees and costs | May be awarded by the panel in certain cases. |
| Punitive damages | Possible when conduct is especially egregious. |
Why choose our firm
We focus exclusively on investment fraud and broker misconduct. Our partners defended the largest Wall Street firms before switching sides, so we understand how brokerages build defenses and where they are vulnerable. We have a 98% success rate and have been involved in more than $520 million of securities cases.
We represent investors in all 50 states from offices in Florida, New York, Arizona, Texas, and North Carolina. Every case is handled on a contingency fee basis. Call 1-888-885-7162 or contact us online for a free consultation.
Frequently asked questions
How do I know which type of misconduct applies to my case?
You do not need to figure that out yourself. During a free case review, we examine your statements and tell you which rules were likely violated and what claims you may have.
Do all investment fraud claims go through FINRA arbitration?
Most do because brokerage agreements require it. Some claims may also involve court litigation, regulatory complaints, or bankruptcy claims. We choose the right forum for your case.
Can I afford to hire an investment fraud lawyer?
Yes. We work on a contingency fee basis. The consultation is free, and you pay nothing unless we recover money for you.
What if my broker was fired or the firm closed?
You may still have a claim against the firm, its insurance, or successor entities. Brokerage firms are generally liable for the conduct of their brokers.
How long do I have to act?
FINRA arbitration claims generally must be filed within six years of the event, but state deadlines may be shorter. Contact us as soon as possible so we can protect your rights.
This page is for informational purposes only and does not constitute legal advice. Past results do not guarantee future outcomes.