Failure To Supervise Lawyers in Philadelphia PA | Goldman, Scarlato & Penny P.C.


FAILURE TO SUPERVISE LAWYERS

We represent investors who suffer losses as a result of their brokers selling them improper or fraudulent investments “away from the brokerage firm.”
Selling away is the inappropriate practice by brokers or investment professionals who sell securities not offered by the brokerage firm with which they are associated or affiliated, or outside the regular course or scope of business of those brokers’ firms.
Brokers or financial advisors who sell investment products which their firm doesn’t carry or offer may be liable for selling away from the firm, a practice usually prohibited because of its susceptibility to fraud, deception, and increased risk to investors.
One potential hazard of selling away is that an investor may falsely believe that an outside investment is endorsed in good faith by the broker’s firm, thus giving it a mistaken sense of legitimacy and security. Also, as the firm is not properly supervising the sale according to specific rules in the securities industry, investors are more susceptible to losing their money.
Given the high risk of fraud associated with selling away, the Financial Industry Regulatory Authority mandates that brokerage firms reasonably supervise their stockbrokers to prevent them from engaging in selling away.  The duty to supervise is strict, and includes unannounced visits, audits, review of the brokers’ communications, and so on.
When a brokerage firm fails to adequately supervise its broker and prevent him from selling unapproved products to customers, away from the firm, the firm may be liable to such investors if the products turn out to be fraudulent or inappropriate for the investors.
If you believe you may have lost money as a result of purchasing an investment product from a broker or financial advisor away from his brokerage firm, please contact us for a free, no-obligation consultation regarding your legal situation and potential recovery options, by phone at 888-998-0530, via email at arosca@roscalaw.com, or through the contact form on this page.

Contact Us:

Goldman Scarlato & Penny P.C.
rosca@lawgsp.com
8 Tower Bridge, Suite 1025
161 Washington St Philadelphia, PA, 19428 United States
888-998-0530
https://investorlawyers.org
Resource URL:-https://investorlawyers.org/practice-areas/failure-to-supervise/

Comments

Post a Comment

Popular posts from this blog

Ponzi Schemes Lawyers in Philadelphia PA | Goldman, Scarlato & Penny P.C.

Image
  PONZI SCHEME  LAWYERS We often represent investors who have lost money in Ponzi schemes.   Investor rights lawyer Alan Rosca, one of the firm’s partners, has represented thousands of victims of Ponzi schemes. Ponzi schemes are fraudulent investment programs in which unscrupulous promoters pay supposed returns to existing investors with money raised from new investors, in effect “robbing Peter to pay Paul.” Ponzi schemes are by definition unsustainable and fraudulent. They are unsustainable because they depend on the promoters’ ability to continuously recruit new investors to be able to pay returns to existing investors.  As the size of the scheme grows, the distribution payments to existing investors grow ever larger, and at some point the promoters become unable to recruit sufficient investors to cover those distribution payments. At that point, the Ponzi scheme runs out of steam and collapses. Ponzi schemes are inherently fraudulent because new investors are not told that their mon
Read more

Areas of Legal Practice in Philadelphia | Goldman, Scarlato & Penny P.C.

Image
Nationwide Investor Representation Did you lose money as a result of investment fraud, corporate wrongdoing, or misconduct by your investment advisor? We have helped thousands of investors seek compensation for losses they suffered as a result of - If you believe you lost money as a result of investment-related fraud or misconduct, please contact our law firm for a free, no-obligation evaluation of your recovery options at  Contact Us: Goldman Scarlato & Penny P.C rosca@lawgsp.com 8 Tower Bridge, Suite 1025 161 Washington St Philadelphia, PA, 19428 United States 888-998-0530 https://investorlawyers.org/ Resource URLs:-  https://investorlawyers.org/practice-areas/ Copyright ©2020 Goldman, Scarlato & Penny P.C.
Read more

Unsuitable Investment Lawyers in Philadelphia PA | Goldman, Scarlato & Penny P.C.

Image
UNSUITABLE INVESTMENT LAWYERS We seek compensation for investors who lost money as a result of unsuitable investments recommended to them by their investment advisors or brokerage firms. Securities broker-dealer firms and professionals have a duty to only recommend to their customers investments that are suitable for those customers’ investment profiles, experience, and risk tolerance. The securities regulators have enacted extensive suitability rules and regulations applicable to a broker’s recommendations with regards to specific investments. BROKERS MUST ASCERTAIN THE SUITABILITY OF INVESTMENTS FOR EACH INDIVIDUAL CUSTOMER, BASED ON FACTORS SUCH AS: (1). financial health (2). tax status & age (3). current portfolio (4). risk tolerance & investment experience (5). liquidity (6). investment goals An unsuitable investment may comprise one, two, or all three characteristics. For instance, illiquid investments are typically unsuitable for elderly i
Read more