Informational video on Churning fraud (excessive trading)
Churning fraud is defined as an unethical practice employed by some financial advisors to increase their commissions by excessively trading in a client’s account. This practice violates various FINRA Rules and is often referred to as “churn and burn”, “excessive trading”, “twisting” and “overtrading.”
Please view this video about Churning (excessive trading) from our securities fraud practices informational series.
Brokers have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered. Furthermore, brokers are prohibited from engaging in underhanded businesses practice, like churning, that violate securities laws and regulations.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you believe that you have been the victim of churning, please call the securities attorneys of The White Law Group at 888- 637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit https://whitesecuritieslaw.com.Tags: account trading investigation, broker churning, broker over trading account, broker regulations, Chicago broker fraud attorney, Chicago churning attorney, Chicago churning lawyer, Chicago FINRA attorney, Chicago investment fraud attorney, Chicago securities attorney, Chicago securities lawyer, churning, churning turnover ratio, Excessive brokerage fees, Excessive buying and selling securities, excessive financial advisor commissions, excessive financial advisor fees, Excessive stockbroker commissions, Excessive stockbroker fees, excessive trading, financial adviser fraud, financial advisor account churning, financial advisor Churn & burn, financial advisor churning attorney, financial advisor churning lawyer, financial advisor Excessive commissions, Financial advisor Excessive fees, financial advisor excessive trading, financial advisor Excessive transactions, financial advisor fraud, Financial advisor frequent trades, financial advisor rules, FINRA arbitration, Florida churning attorney, Florida churning lawyer, Frequent broker commissions, Frequent brokerage fees, how much trading is too much, how prove churning, Illinois churning attorney, Illinois churning lawyer, investment advisor account churning, investment advisor churn and burn, investment advisor excessive commissions, investment advisor excessive fees, investment advisor excessive transactions, investment advisor frequent trades, investment fraud, investment losses, recover stock losses, recovery of investment losses, Securities Attorney, Securities Fraud Information, Securities Lawyer, stockbroker Account churning, stockbroker churning and burn, stockbroker churning attorney, stockbroker churning lawyer, stockbroker excessive commissions, stockbroker excessive fees, stockbroker excessive transactions, stockbroker fraud, Stockbroker frequent trades, sue my broker, The White Law Group, unethical broker practices, Vero Beach securities attorney, Vero Beach securities lawyer, what is churning, what is excessive trading, what turnover ratio is considered churning Last modified: March 7, 2017