When you make an investment, in addition to your financial assets, you’re also placing a lot of trust into the hands of a brokerage firm, fiduciary, or financial advisor. The expectation is that they have your best interests in mind. It is the duty of the stockbroker to give sound advice based on your financial goals and to act in your best interests when it comes to your investment. This is the basis of the fiduciary relationship between broker and investor and there are certain ethical and moral obligations placed on the fiduciary to ensure that your investment is in safe hands.
Unfortunately, some fiduciaries may take advantage of you as a client, using the financial assets that you’ve placed in their hands for their own benefit and financial gain. A fiduciary’s actions regarding your investment must be free of personal bias, without any conflicts of self-interest. This means a fiduciary may not use your principal investment for their own personal financial gain, and it is crucial that the fiduciary makes investment recommendations based on your personal financial goals, rather than what will most benefit the brokerage firm.
This also applies to corporate assets, corporate property and corporate opportunities. A fiduciary may not use any of your business assets for their own financial gain. If a fiduciary does get involved with misusing corporate funds for their own benefit, this may also result in fraud, based on the specific actions of the fiduciary. This is why it is crucial to make sure that all corporate decisions regarding investments be considered and agreed upon by the Board of Directors or executive board of the company in question.
It may be somewhat difficult to prove that fraud is involved, as it would be necessary to prove that the intent was of a criminal nature. Breach of fiduciary duty, however, is much more straightforward to prove in a court of law. The only proof that is necessary to win a breach of fiduciary duty case is that the broker was in a fiduciary position and broke the trust instilled into that position by taking advantage for their own personal financial gain.
Experienced FINRA Arbitration and Investment Loss Attorneys in Las Vegas and Reno
If you believe that your personal or corporate investments are being taken advantage of by a fiduciary that may be abusing their power, contact De Castroverde Law firm today. We have an advanced group of attorneys devoted to your best interests and we will help you file an arbitration claim against the brokerage firm or financial advisor you believe has deceived you.
Losing your principal investment based on the corrupt actions of a brokerage firm can be devastating and has the potential to make or break your entire business. You deserve to recover your personal or corporate assets, as well as hold the brokerage firm responsible for their inappropriate and fraudulent actions.
De Castroverde Law firm has a group of experienced FINRA arbitration and investment loss attorneys who will make sure that your business and finances can recover if you’ve suffered from a breach of fiduciary duty.