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Written by 2:44 pm Blog, Securities Fraud

Naperville, Illinois | Broker Fraud Attorney | Securities Fraud Lawyer 

Naperville, Illinois | Broker Fraud Attorney | Securities Fraud Lawyer, featured by top securities fraud attorneys, the White Law Group

Investment Fraud Attorneys in Naperville, Illinois

Are you concerned about investment losses with your Naperville, Illinois broker or financial advisor? If so, the national securities attorneys at the White Law Group may be able to help you. 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 Illinois, including reviewing securities fraud cases in Naperville, Springfield, Champaign, Decatur, Aurora, Rockford, and Peoria. All cases in the Midwest portion of the United States are administered out of FINRA’s Chicago, Illinois Dispute Resolution office. 

Under Illinois law, all securities offered or sold in the state must be registered prior to offer or sale, unless exempt by law. The National Securities Markets Improvement Act of 1996 redefined which securities required state registration. Generally, all national offerings listed on the major exchanges and all mutual funds, as well as securities sold to qualified purchasers are now solely under the regulatory jurisdiction of the SEC. 

Common Types of Investment Fraud/Broker Fraud Claims  

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.   

Broker Misrepresentation 

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. 

Unauthorized Trading 

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.

Unsuitable Investments 

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 do due diligence on an investment before recommending it to their clients. 

“Selling Away” 

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.

Illinois Securities Department

The Illinois Securities Department regulates the offer and sale of securities pursuant to the Illinois Securities Law of 1953. The department registers securities offerings, broker-dealers, investment advisers and their sales-persons and representatives, loan brokers, business brokers and those who offer and sell business opportunities. If you feel you have been a victim of securities fraud,  you may file a complaint as soon as possible and consider seeking legal advice. 

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. Broker-dealers, firms which market investments to the public, are also regulated by the Financial Industry Regulatory Authority (FINRA) and the Securities Exchange Commission (SEC).  

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.  

Brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment prior to making recommendations to an individual investor. 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    

White Law Group – FINRA Attorneys in Naperville Illinois  

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 Naperville 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 Naperville investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.   

The firm reviews securities fraud cases throughout Illinois, and across the country. If you have questions about investments you made in Naperville, Illinois, 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. 

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