What happens when a stockbroker or registered investment advisor steals money or securities from a customer’s account? Does this happen often? Unfortunately, the theft of customer monies and investments by stockbrokers and registered investment advisors occurs in less than 1% of all accounts. When theft does happen, getting your money back may not be easy and it may require a lengthy battle in the courts or in the arbitration process.
Even the most prestigious brokerage firms, banks and insurance companies will oftentimes fight theft claims, claiming that they are not responsible for the criminal acts of their employees. The comprehensive regulatory schemes for stockbrokers, investment advisors, bankers and insurance companies includes detailed and particularized procedures and safeguards which must be followed to protect client monies from theft and embezzlement.
Many financial firms are subject to net worth, bonding, asset protection and insurance related requirements which serve to assure the availability of monies to compensate victimized customers. However, victimized investors must act fast when indications are that they have been victimized in order to assure that their claims are brought within the applicable statute of limitations, as well as assuring they are first in line for recovery of losses before available financial protection runs out.
We offer a free initial consultation to investors who feel they have been victimized by a dishonest investment advisor.