Investment advisor fraud is a type of financial fraud that occurs when an investment advisor engages in dishonest or illegal activities that harm their clients. These activities can include:
Making false or misleading statements about investments.
Omitting material information about investments.
Trading on inside information.
Churning, which is excessive trading in a client's account that generates commissions for the investment advisor but does not benefit the client.
Unauthorized trading, which is trading in a client's account without the client's knowledge or consent.
Misappropriation of client funds, which is using client funds for the investment advisor's own purposes.
Investment advisors are regulated by federal and state law in addition to regulatory agencies including the Securities and Exchange Commission (SEC). Securities laws mandate complex requirements on investment advisors including to act in your best interest (a fiduciary duty). Investment advisor fraud can have a devastating impact on investors, who can lose their life savings or retirement funds If an investment advisor caused you to lose money as a result of their negligence or outright fraud, contact our firm to discuss your options for recovering your losses.