Concerned about your investments in Madison, Wisconsin?
Have you suffered investment losses with your Madison, Wisconsin broker or financial advisor? If so, the national securities attorneys at The White Law Group may be able to help you. The firm is dedicated to helping investors across the country in arbitration claims against their brokerage firms or financial professionals.
The White Law Group, LLC, a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm, has offices in Chicago, Illinois and Seattle, Washington.
With offices in Chicago, Illinois, the White Law Group handles securities fraud cases throughout the state of Wisconsin, including reviewing securities fraud cases in Madison, Racine, Milwaukee, Kenosha, Lake Geneva, Green Bay, Altoona, and Osh Kosh. (All cases in the Midwest portion of the United States are administered out of FINRA’s Chicago, Illinois Dispute Resolution office.)
Wisconsin law defines securities as stocks, bonds, promissory notes and other evidences of indebtedness; shares in mutual funds; stock options; limited partnership interests; interests in oil and gas, mining, or real estate ventures or leases; certificates of deposit; some commodity contracts; and “investment contracts” — a catch-all term for certain kinds of unusual investment arrangements in which the investor is to rely on the effort of others for some essential managerial activities.
Broker-dealers are firms which market investments to the public. Broker-dealers and their sales agents who contact persons in Wisconsin seeking to sell them securities must be licensed by the Department of Financial Institutions.
Common Types of Investment Fraud/Broker Fraud Claims (see also: Common Claims)
Sometimes a customer will complain that the broker said that something was a very safe investment but the customer later discovered that in fact it was very risky. Customers rely upon the recommendations of stockbrokers, and failure to properly disclose the risk is a misrepresentation or material omission. Unfortunately, many investors do not discover the truth in such cases until after they have incurred substantial losses and then realize that the investment was not so safe in the first place.
Churning or Excessive Trading
If a broker is constantly buying and selling in the account, this may be evidence of churning, which means engaging in excessive trading in order to generate commissions for the broker. This practice is illegal.
An unsuitable investment is when an investment does not meet the objectives and means of an investor. The investment strategy may also be unsuitable. Brokers and financial advisors are required to due diligence on a investment before recommending it to their clients.
Selling away is when a broker or financial advisor solicits you to purchase securities not held or offered by the brokerage firm. As a general rule, such activities are a violation of securities regulations. Typically, when a broker is “selling away,” the investments are in the form of private placements or other non-public investments, and often these are investments that the broker has some pecuniary interest in. Such an investment is generally a violation of securities rules because the brokerage firm has not researched the risks of the investment or approved the investment for sale to its clients, and the broker is selling the investment without the knowledge of his employer.
Sometimes a customer may be surprised to discover certain trades made in his account which had not been previously discussed by the stockbroker. This constitutes unauthorized trading, which is prohibited.
Wisconsin Department of Financial Institutions
The Wisconsin Department of Financial Institutions has specifically asked that investors be on the lookout for the following securities frauds/ investment schemes:
Ponzi Schemes use the money of later investors to pay off earlier investors. Early investors receive what appear to be high dividends or interest on their investments. Reports of these high returns are then used to entice new investors. In reality, there is no underlying business. The early investors are simply being paid off with funds received from the later investors. When the scheme collapses, as it always does, current investors lose their money and the promoters walk away rich.
Affinity Schemes use a common connection between you and the salesperson to establish trust. This is simply a ploy to get you to drop your defenses so that you can be separated from your money. Because you are members of the same group, he or she wants you to believe that you would never be defrauded. The fact that the salesperson is of your race, religion, ethnic or other similar type group does not make the investment legitimate.
Real Estate or Oil and Gas Schemes come in many forms. Most are designed to convince you to invest in some kind of property or mineral rights at a location that neither you nor other investors have ever seen. Statistical reports and glowing projections are produced to entice you to invest in the hope of becoming an oil baron or a real estate magnate. In fraudulent promotions, even if the property or oil well does exist—which is often not the case—the proposed income-producing activity either does not exist, or does not operate as represented.
The Wisconsin Department of Financial Institutions has wide regulatory powers and can sanction, bar, or criminally investigate individuals or companies involved in securities fraud. Additionally, investors may also have a private right of action against these firms or individuals.
FINRA Arbitration and Mediation to Recover Investment Fraud Losses
State regulators are often limited in how much they can help in recovery of investment losses. FINRA Dispute Resolution is an arbitration venue for investors across the country with claims against their brokerage firm or financial professional. ?It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.
Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration
Madison, Wisconsin FINRA Attorneys
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
With over 40 years of securities law experience, including experience working at FINRA and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.
The firm reviews securities fraud cases throughout Wisconsin, including reviewing securities fraud cases in Milwaukee, Altoona, Madison, Racine, Kenosha, Sheboygan, Osh Kosh, Green Bay, and Janesville.
If you have questions about investments you made in Wisconsin, the securities attorneys of The White Law Group may be able to help. For a free consultation, call the firm’s Chicago office at 888-637-5510.
For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.
Tags: broker fraud, brokerage firm, Financial Advisor, FINRA, Green Bay, investment losses, investor protection, Kenosha, Lake Geneva, Madison, Milwaukee, NASD, Osh Kosh, Racine, SEC, securities arbitration, Securities Attorney, securities law, securities law firm, Securities Lawyer, stockbroker, Wisconsin Last modified: October 27, 2022