Silver Law Group Files Investor Securities Arbitration Claim Against Broker

Silver Law Group filed a FINRA arbitration claim on behalf of an investor who suffered losses after her financial adviser convinced her to loan him money, and then failed to repay it. The financial adviser developed a position of trust and confidence with Silver Law Group’s client, then convinced her that he had a unique investment opportunity which would make large profits for both of them. The adviser never disclosed that this is an improper practice in the brokerage industry or that his broker-dealer did not allow brokers to borrow money from customers. However, the customer alleges that the firm failed to properly supervise the financial advisor and engaged in elder financial fraud.

Silver Law Group’s client believed she would receive her money back, with interest, but instead suffered substantial financial losses at the hands of her broker. Additional allegations include the brokerage firm making unsuitable recommendations, failure to supervise, breach of fiduciary duty and elder fraud.

Financial advisors have great insight into a customer’s financial situation. Unfortunately, this type of financial fraud is a growing problem, especially among the elderly and other vulnerable communities. A financial advisor and broker-dealer firms owe customers certain duties and financial advisors should never borrow money from a customer. Moreover, the Financial Industry Regulatory Authority promulgates rules designed to protect investors—particularly those who are elderly or vulnerable—from being taken advantage of by advisors who borrow money on unfair terms or who borrow money without the intent or ability to ever repay.

Scott Silver, Managing Partner of Silver Law Group, commented that “we have seen a rise in cases of elder financial abuse and brokers who solicit customers to invest in unregistered securities borrow money or otherwise engage in elder financial abuse.” Securities arbitration offers a reasonable method for investors who have been a victim of securities or investment fraud to recover their damages.

Elder Financial Fraud And Stockbroker Misconduct

Our attorneys have extensive experience representing investors nationwide who suffered losses due to their financial advisor or stockbroker improperly managing their money and elder financial fraud. Silver Law Group has represented clients with claims concerning brokers who borrowed funds and failed to repay as well as brokers who orchestrated a fraud and/or Ponzi scheme involving borrowed funds from customers. We are happy to talk to investors by phone or video conference about their legal rights and the arbitration claims we have filed against advisers and their firms in connection with improper borrowing from customers.

Our attorneys have significant experience recovering investor money due to misconduct by brokerage firms. If you suffered losses and would like a confidential consultation with an investment fraud attorney with passion and experience advocating for aggrieved investors, call Silver Law Group toll free at (800) 975-4345 or email ssilver@silverlaw.com.