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The following content is considered nonlegal and nonbinding OPINION only, and does not legally assume any entity is responsible for the accuracy of any facts that may seem to be presented by any entity. Rather this is meant to be a starting point of research into the facts or truth. The standard of the reasonable person should be assumed with regard to any possible research into the facts or truth!


Dumping investment houses weak portfolio on client usually with improper recommendations by internal staff.

False statements and omissions, such as Guaranteed sure winner, fraud or stealing, or relying on false press releases, especially about orders or business performance.

Misappropriation is usually stealing customer's assets.

Spinning is similar to a pyramid scheme where top players get the first profits.

Mutual-Fund Switching is switch to a fund managed by another company.

Front Running due to buying low from or selling high to their customers.

Breach of Fiduciary Duty is a conflict of interest with the client.

Newsletter scam is recommending securities that they have an interest in usually with lies about performance.

Good Faith and Fair Dealing would usually be the absence of due diligence or a conflict of interest.

Trading without permission would be unauthorized trading.

Ineptitude or malpractice, such as Failure to Supervise or Failure to Follow Instructions.

Churning trading by usually trading to increase commissions rather than for the customers benefit.

Unsuitability for needs of client including reasonable risk, tax bracket, age, and/or health.

Over Concentration is the absence of proper diversification.

Margin problems usually involves excessive borrowing to buy securities.

Sold too soon is usually only due to insider trading and not a usual problem for long term investors.

It tends to be easy to do investment fraud and difficult to recoup losses in court.

Ponzi, Pyramid, Chain letter, Offshore, or Pump and Dump scheme.

Does not show where money is held, which broker dealers used, checks not to be made out or statements not prepared by an established custodian or auditor that provides insurance such as SPIC.

Is too consistent or returns high rates without good explanations.

Does not explain their costs or inconsistent sales material compared to SEC or FINRA.

No confirmations, or documentation, or tax documents received, such as 1099s or broker information or disciplinary history.

Pushy or aloof.

Addictive or showy behavior.