Financial Advisor Scams

Real people. Real scams.

Securities Fraud and Stockbroker Fraud happen every day.

The case managers at Sokolove Law speak with individual investors on a daily basis and understand securities lawsuits. We’ve gathered a few real-life examples of people who ended up victims of financial advisor scams or have been given unsuitable or bad investment advice. Even if your stockbroker, advisor or investment representative seems amiable, you should know the risks and warning signs of securities fraud.

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  • Having been told not to worry about their investments and that their money would triple in 3 months, a Texas woman and her mother found that they had been defrauded by their broker who had attempted to generate higher commissions through excessive trading. At the urging of the broker, the investor went so far as to borrow money on her house, which had previously been paid for. After suffering significant financial loss which put tremendous strain on her parent’s retirement plans, she was later informed that the broker had spent 3 years in federal prison for bank fraud.
  • In 2009, the Securities and Exchange Commission charged an Alabama broker-dealer with making excessive trades (churning) to earn over $1 million in commissions while 15 customers lost approximately $3.5 million. The SEC claimed that the firm's "fraudulent sales practices and high-pressure sales tactics" persuaded customers to open accounts that were ultimately churned. 1

Unsuitable Recommendations

  • An Arizona man was advised by his broker to sell various stocks and bonds and as a result, continually missed out on large dividends. Additionally, he discovered that his broker was using his account to day trade and was making unauthorized purchases of government stocks. When the man later requested to liquidate his investments, he found that his bonds had already been liquidated. He contacted his financial firm to inquire further and was told that his broker no longer worked there.
  • In Illinois, an investor was advised by his stockbroker not to sell any stock during a downtown in the market and especially during presidential elections. As a result of this poor investment advice, he incurred significant financial loss.
  • A Georgia woman and her husband in their 80s fell victim to a financial advisor scam when their stockbroker put them into risky investments, despite their age and financial goals. She is now widowed and without a significant portion of their hard-earned life savings.

Failure To Execute

  • An Arizona woman invested her cash savings with a single broker and then rolled over additional IRA funds to the same individual. She and her broker were in contact every few months and she was assured that her portfolio remained aligned with her goals and was being carefully monitored. Meanwhile, her broker had been purchasing expensive stocks that eventually decreased to virtually no value because they were not sold in time. She was also invested in a number of technology stocks and when her account began rapidly losing money, she was told by her broker to simply wait for her stocks to recover.

Empty Promises

  • One man was verbally guaranteed, by his broker, that his money would be doubled and instead found that he had lost half of his investments without further explanation.

Have you experienced something similar?

If you've lost money due to a unsuitable or bad investment advice from your investment broker or advisor, you may be the victim of securities fraud or stockbroker fraud. Call Sokolove Law today for a FREE, no-obligation legal consultation. Seeking legal advice and taking action may help put you on the road to financial recovery. Our case managers are available 24 hours a day, 7 days a week to answer your questions and help you take the next steps and potentially file a financial advisor lawsuit with the help of a securities fraud lawyer.

Call Sokolove Law today for a FREE legal consultation on your potential securities fraud case.

Your willingness to learn more about securities lawsuits and dig beneath the surface might mean recovering some or all of your losses from a financial advisor scam: and perhaps prevent your broker or advisor or firm from defrauding someone else.

Why Work With a Securities Fraud Attorney?

A securities fraud lawyer should be familiar with changing state and federal laws and can advise you on legal options appropriate to your situation. Sokolove Law, a national law firm, offers a FREE, no-obligation legal consultation for those who believe they have been a victim of financial advisor scams or stockbroker fraud. Call Sokolove Law today to learn more about how we might be able to help you recover your losses.

Insurance and Financial Advisor, Alabama firm, 9 employees accused in 'rampant churning' case, June 17, 2009,


Sokolove Law Team

Contributing Authors

The Sokolove Law Content Team is made up of writers, editors, and journalists. We work with case managers and attorneys to keep site information up to date and accurate. Our site has a wealth of resources available for victims of wrongdoing and their families.

Last modified: May 24, 2024