Litigation
Investment fraud and stockbroker fraud takes many different shapes and forms, and most investors don’t know their rights under the Securities Law. Wrongful trading activity in the accounts of the everyday American investor can include account churning, private placement fraud, breach of fiduciary duty, annuities fraud, stock manipulation, unauthorized trading, and embezzlement. Securities fraud can also include a Ponzi scheme, involving variable annuities, as well as wrongful activity related to retirement and IRA accounts.
When serving as an IRA custodian for financial accounts, corporate trustees and custodians under IRS section 408(b) also owe additional contractual obligations, as well as being required to follow the Know Your Customer Rule of the Financial Industry Regulatory Authority (FINRA).
Other types of retirement accounts include those subject to ERISA, the Federal retirement protection act, under which responsible individuals and financial institutions owe a fiduciary duty to their customers to protect customer accounts from excessive risk, lack of diversification, and unnecessary losses.
In 1987, the United States Supreme Court in the case of McMann v. Shearson held that the customers of securities brokerage forms are required to submit their claims to arbitration in circumstances where they have previously signed a contractual agreement to arbitrate disputes, as opposed to pursuing them in the court system. In certain instances, investors can pursue their claims for victimization in the courts. In particular, where an investor has not previously contractually committed to submit such disputes to arbitration, the courts may be an available forum to address these disputes.
Further, the claims of shareholders or members of closely-held companies usually have direct access to the court system when faced with direct claims against such companies and their officers, directors, and oppressing majority shareholders. Mr. O’Connor has been pursuing the rights of victimized investors in the court system since 1985.
