Investment Fraud

In this period of rapidly deflating stock portfolios, Johnston Tobey, P.C. represents a growing number of investors seeking damages against a stockbroker for the following types of improper action:

Unsuitability - Federal regulations require brokers to suggest investments that are appropriate or well suited to their clients' needs and circumstances.

Churning - Brokers whose compensation is based partly on the number of shares traded must not suggest trades simply to pad their own accounts.

Unauthorized Trading - Brokers are required to gain authorization for trades from their clients and not purchase stocks for a client without authorization.

Fraud - These are the very lies and misrepresentations that have made people suspicious of stockbrokers and money managers for decades.

Stockbroker fraud actions rarely go to trial but are decided by a panel of arbitrators.