Your broker and, or investment advisor has the legal duty and responsibility to deal honestly with you, and to fairly disclose all of the risks associated with an investment, so that you can make an informed decision. If your broker makes misrepresentations of material facts, or fails to tell you material information involving an investment, known as omissions, then he has in likelihood violated one or more securities laws.
Federal and state securities statutes and regulations make it unlawful for anyone to make misrepresentations or omissions in connection with the purchase or sale of a security. Stockbrokers, investment advisors, and financial planners must have a reasonable basis for the statements they make, and assurances or promises made without a reasonable basis may be unlawful.
For example, if a stockbroker tells you that a stock is definitely going up, or that he will guarantee a 20 percent return on your oil and gas or real estate limited partnership investment, he or she is making a misrepresentation. Likewise, a stockbroker must provide you with all material information known to him about a potential investment, including the fees involved and the degree of risk you should expect.
If you believe that you have been a victim of misrepresentations and/or omissions, or any type of securities fraud, you have certain rights, which you should be aware of, rights which may provide you an opportunity to recover your losses from your stockbroker or brokerage firm.
At Loya & Associates we can help. I represent victims of securities fraud. Please call or email us today.