Couple Awarded $1.3 Million in Stockbroker Arbitration Claim

Dallas, TXInvestors may think that a lawsuit is the only way to regain funds lost to an unethical stockbroker, but in actuality stockbroker arbitration can be an attractive alternative to a lawsuit. Some complainants are being awarded substantial amounts in their arbitration cases, without having to go through a lawsuit.

In one example, an arbitration panel awarded a couple $1.32 million in their claim against their stockbroker. According to the Palestine Herald-Press the couple alleged their stockbroker did not advise them about risks in their account, used their funds for his own personal gain, invested their money in risky investments without their consent and lied about the value of their accounts.

The same stockbroker currently faces similar claims from other investors and faces criminal charges related to his handling of clients' investments. He had worked as a stockbroker for A.G. Edwards and Sons, Inc. The arbitration panel found that the stockbroker's actions constituted fraud, common law fraud and statutory fraud.

Angry investors have written to LawyersandSettlements.com to report on unethical stockbrokers. They note that they have been victims of excessive trading; unauthorized trading; unauthorized opening and closing of accounts; misinformation; failure to properly manage an account; and inappropriate investments. Money lost ranges from a few thousand dollars up to millions of dollars. They are now investigating possible stockbroker arbitration claims to recover their lost money.

Stockbroker arbitration can be used to settle a variety of claims, including fraud, misappropriation of funds, breach of fiduciary duty and negligence. Some cases involve not only claims against stockbrokers but claims against brokerage firms for failing to properly monitor the actions of their stockbrokers.

Arbitration, although unfamiliar to many investors, is often less expensive and less time-consuming than a lawsuit. One of the reasons for this is that the members of an arbitration panel are generally familiar with many issues relating to securities claims. This means that expert testimony and depositions can often be avoided.

Even though arbitration is an attractive alternative to lawsuits, arbitration can still be a complex process. It involves knowledge of regulations governing stockbrokers, which can be complicated. Furthermore, hearings involve testimony and parties can call witnesses and give opening statements. An attorney who is experienced in stockbroker arbitration understands the laws and the arbitration process and can help you recover the money taken from you by an unscrupulous stockbroker.

If you believe your stockbroker has behaved in an unethical manner, causing your account to lose value, you may be able to recover the money you lost. Contact a lawyer to discuss your options.