How to Sue for Stock Broker Fraud
Report the problem to the brokerage firm., File a complaint with the Securities and Exchange Commission (SEC)., File a complaint with the FINRA Investor Complaint Center., Contact your state securities regulator.
Step-by-Step Guide
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Step 1: Report the problem to the brokerage firm.
If your stock broker is employed by a brokerage firm, that firm has a duty to supervise its employees and combat fraud within its ranks.The Financial Industry Regulatory Authority (FINRA), an independent regulatory organization with congressional authorization to regulate the securities industry, requires all registered brokerage firms to implement policies and procedures to monitor their brokers' activities and prevent investment fraud.
You may want to contact the firm before you send a letter and find out if it has a specific procedure for submitting complaints about brokers.
This information also may have been included in the materials you were given when you opened your account.
Submit your information to the brokerage firm in writing.
Include your name, contact information, and account number, and describe the events or actions taken by your broker that you believe were fraudulent.
Give the firm a deadline by which to respond to your claim, and make a copy of your letter before you send it. -
Step 2: File a complaint with the Securities and Exchange Commission (SEC).
The SEC has the authority to enforce federal securities laws and will investigate potential violations.You can file a complaint online using the SEC's tips, complaints, and referrals portal at https://denebleo.sec.gov/TCRExternal/disclaimer.xhtml.
You also can write your complaint and mail it to SEC, 100 F Street NE, Washington, DC, 20549-5990.
In your complaint, include your name, address, phone number, and email address, as well as the same information for the stock broker or brokerage firm about which you're filing your complaint.
Include all relevant information about the incident you characterize as fraud, including any actions taken by the brokerage firm to address the problems you've had with your stock broker.
You may attach any documentation to your complaint that you feel supports your position or provides evidence of stock broker fraud.
Keep in mind that if you submit your report anonymously, the SEC will be unable to help you recover any losses you may have or otherwise contact you personally if the investigation necessitates further questions. , You can access FINRA's online complaint center at http://www.finra.org/investors/investor-complaint-center.
If you prefer, you also can print the complaint form and mail it to FINRA at 9509 Key West Avenue, Rockville, MD 20850-3329, or fax it to 866-397-3290.
Your complaint should include your name and contact information as well as the name and contact information of the stock broker or brokerage firm about which you are complaining.
Provide details about the events and circumstances surround the fraudulent activity.
You can attach any documents that support your complaint.
The organization also has a helpline for seniors, who may be particularly vulnerable to fraud.
You can call 844-574-3577 during normal business hours and an agent will assist you.
Keep in mind that there are no guarantees you will get any of your money back by filing a complaint, or that FINRA will take any disciplinary actions or impose sanctions on the stock broker or brokerage firm as a result of your complaint. , In addition to federal laws, your state also has laws in place to protect investors from fraudulent activities or breach of fiduciary duty by stock brokers and brokerage firms.State regulators are members of the North American Securities Administrators Association, which also has mediation and arbitration services available.
To find your state's securities regulator, go to http://www.nasaa.org/about-us/contact-us/contact-your-regulator/.
Click on your state to visit the website of your state's securities commission and learn more about filing a state complaint. -
Step 3: File a complaint with the FINRA Investor Complaint Center.
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Step 4: Contact your state securities regulator.
Detailed Guide
If your stock broker is employed by a brokerage firm, that firm has a duty to supervise its employees and combat fraud within its ranks.The Financial Industry Regulatory Authority (FINRA), an independent regulatory organization with congressional authorization to regulate the securities industry, requires all registered brokerage firms to implement policies and procedures to monitor their brokers' activities and prevent investment fraud.
You may want to contact the firm before you send a letter and find out if it has a specific procedure for submitting complaints about brokers.
This information also may have been included in the materials you were given when you opened your account.
Submit your information to the brokerage firm in writing.
Include your name, contact information, and account number, and describe the events or actions taken by your broker that you believe were fraudulent.
Give the firm a deadline by which to respond to your claim, and make a copy of your letter before you send it.
The SEC has the authority to enforce federal securities laws and will investigate potential violations.You can file a complaint online using the SEC's tips, complaints, and referrals portal at https://denebleo.sec.gov/TCRExternal/disclaimer.xhtml.
You also can write your complaint and mail it to SEC, 100 F Street NE, Washington, DC, 20549-5990.
In your complaint, include your name, address, phone number, and email address, as well as the same information for the stock broker or brokerage firm about which you're filing your complaint.
Include all relevant information about the incident you characterize as fraud, including any actions taken by the brokerage firm to address the problems you've had with your stock broker.
You may attach any documentation to your complaint that you feel supports your position or provides evidence of stock broker fraud.
Keep in mind that if you submit your report anonymously, the SEC will be unable to help you recover any losses you may have or otherwise contact you personally if the investigation necessitates further questions. , You can access FINRA's online complaint center at http://www.finra.org/investors/investor-complaint-center.
If you prefer, you also can print the complaint form and mail it to FINRA at 9509 Key West Avenue, Rockville, MD 20850-3329, or fax it to 866-397-3290.
Your complaint should include your name and contact information as well as the name and contact information of the stock broker or brokerage firm about which you are complaining.
Provide details about the events and circumstances surround the fraudulent activity.
You can attach any documents that support your complaint.
The organization also has a helpline for seniors, who may be particularly vulnerable to fraud.
You can call 844-574-3577 during normal business hours and an agent will assist you.
Keep in mind that there are no guarantees you will get any of your money back by filing a complaint, or that FINRA will take any disciplinary actions or impose sanctions on the stock broker or brokerage firm as a result of your complaint. , In addition to federal laws, your state also has laws in place to protect investors from fraudulent activities or breach of fiduciary duty by stock brokers and brokerage firms.State regulators are members of the North American Securities Administrators Association, which also has mediation and arbitration services available.
To find your state's securities regulator, go to http://www.nasaa.org/about-us/contact-us/contact-your-regulator/.
Click on your state to visit the website of your state's securities commission and learn more about filing a state complaint.
About the Author
Alexis Evans
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