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         |  | Firm OverviewOur goal is to represent Texas investors who have suffered significant losses with stockbrokers and brokerage firms because of mishandling of the investor accounts. Investors sometimes lose their life savings, retirement funds, and inheritances because of the misconduct of brokers and broker-dealers. Some of the more common claims asserted by investors include unsuitable investments, misrepresentations, fraud, churning, unauthorized transactions, order failure, over concentration, margin abuse, kickbacks, guarantees, and lack of supervision.
There are many types of broker misconduct. Some is as blatant as outright theft. Some is as subtle as the broker being too busy or too lazy to properly handle your account. We have listed some of the more common types of broker misconduct under the tab Common Types of Broker Misconduct. You might want to explore that section to see if your account might fit into one of those categories. There are however other types of misconduct, so feel free to describe how you believe you were wronged by your stockbroker when you contact us. We have brought actions against the following brokerage firms:
WHAT WE DO FOR YOU. We begin by having a professional compute the actual losses which you have sustained in your brokerage account. Next, we evaluate those losses by considering: (1) the prevailing market conditions at the time you were sustaining losses; (2) the activity in your account and the commissions charged by the brokerage firm; (3) the pattern of trading in the account; (4) whether the securities were recommended by the broker, and (5) whether the investments were suitable for your portfolio. THE PROCESS-NOT A LAWSUIT BUT ARBITRATION. If you have suffered a significant investment loss because of some misconduct on the part of the broker, the next step is determining where to seek a recovery. Most brokerage firms require their customers when opening a new account to sign a pre-dispute arbitration agreement whereby the customer agrees to submit to arbitration, generally through the Financial Industry Regulatory Authority (FINRA), which was formerly known as NASD. If there is such a pre-dispute arbitration agreement, it will usually be enforced by the courts, so there may not be a choice of forums. If you would like to learn more about the process and whether your loss is worth pursuing, contact us and let us help you make sense of what happened to your portfolio. PROS AND CONS OF ARBITRATION There are some advantages to arbitration, but there are also some disadvantages. Some of them are listed below: PROS: 1. Substantial reduction in cost of obtaining a decision because of the lack of formal pleading rules, simplified arbitration rules, the absence of most pretrial motions, and simplified discovery, simplified rules. 2. Prompt payment of arbitration awards because the rules of FINRA (formerly known as NASD) require prompt payment or, in the event payment is not promptly made, FINRA can take action against broker-dealer or broker. 3. The grounds for setting aside an arbitration award are extremely narrow. As a result, costly appeals are usually unnecessary. 4. In arbitrations before FINRA (formerly known as NASD), a panel of three arbitrators typically will hear the case. Usually, two of the panel members are public members, such as lawyers, accountants, or other professionals who have been trained as arbitrators by FINRA. As a result, it is often easier to present cases involving industry practices or complex damages models to an arbitration panel than to a jury. CONS: 1. In court, you have the right to conduct depositions and much more extensive documentary discovery than in most arbitrations. 2. In court, you have the right to have your case decided in accordance with law, and you can appeal a judgment that you think is contrary to law. 3. In court you have the right to a jury trial, which in some cases would be advantageous.
Important: Please read our Disclaimer The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Copyright © 2006-2008 by Herbert E. Pounds Jr., P.C. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. This Website is Powered by RF Marketing Group Search Engine Optimization for Law Firms |
At Herbert E. Pounds Jr., P.C., our clients typically come to us at or near retirement. Generally, they have lost the nest egg they accumulated over the years. Maybe they saved it in a 401(k) or IRA program. Maybe it was an accumulation of their life savings. Maybe the nest egg was an inheritance. Regardless, all or most of the nest egg is now gone, and despite the assurances from the brokerage firm that they can regain their money, they now face retirement without adequate funds.