When it comes to money management, it’s really hard to know who you can trust. Nearly everyone in the business of taking care of other people’s money needs to make money in the process, but how much is too much, and where do your interests end and theirs begin? Because of this complicated scenario, there has long been certain laws to help protect the little guys from being robbed by the big guys. But just like anything else, there are always people working to circumvent the rules, some get caught and other get away. Let’s take a look at some of the rules and regulations that could involved in misrepresentation by broker dealer.
After Great Depression Plenty Of Laws Were Enacted
Before the Depression, there were plenty of stock brokers that weren’t licensed and many of the stocks they sold weren’t registered either. That’s just part of what led to the big stock market crash of 1929, there were many causes that all came together in the perfect storm.
After that time, any person that wanted to sell stocks or securities had to take classes, an exam, and get a license. Any violations of rules and regulations would get a broker suspended or revoked, ending his career. In addition to that, all stocks had to meet certain criteria in order to be sold, selling anything that was unregistered would end up with the broker in jail.
Lots Of Traders, Brokers, and Investment Firms Are In Litigation
When deals go bad, companies go under, and money is lost, many clients blame their brokers. Did the broker know what was going to happen ahead of time, and did he purposely sell a poor investment for some other type of gain? The Securities and Exchange Commission will want to know, and they’re required to investigate most types of allegations whether they have merit or not.
The key to the whole thing will be whether there was misrepresentation by broker dealer and if it can be proven. Proof is sometimes very hard to come by unless phones are tapped or an insider starts to talk. There are special investigators and fraud attorneys with experience in just these types of cases.
If you have lost a sum of money and you do think there was some kind of fraud or collusion on the part of the broker, you should seek legal counsel immediately. It’s important to look for an investment fraud attorney so that he’ll have the proper training and experience to handle these types of cases. Other attorneys have their specialties, but this type of case is complicated and requires special knowledge.