Churning Attorneys in Baltimore
Customers may grant their brokers discretionary authority to place trades in customers’ accounts, which increases risks and opportunities for abuse such as excessive trading. Due to these risks, securities regulators prohibit firms and their brokers from conducting excessive trading in accounts in which they have discretionary authority.
Excessive Trading and Churning
Trading is excessive when it exceeds what is suitable for customers’ investment profiles and objectives, and trades may be excessive in both size and frequency. Additionally, firms are required to monitor for and detect trading that is excessive considering the financial resources and character of customers’ accounts.
Churning is a malicious form of excessive trading that occurs when brokers intentionally maximize their commissions at the expense of their customers. Often, broker compensation includes commissions on each trade performed on behalf of their clients. This compensation creates an opportunity for brokers to churn their customers’ accounts by executing unnecessary trading that only benefits the broker through the commissions that they have earned. Churning is a serious fraud that can cost investors significant losses.
When brokers engage in excessive trading or churning, customers have a right to pursue legal action seeking a recovery of their losses. Get in touch with us today to get started.
Contact us online or call 410-LAW-FIRM to to help you determine whether you have been victimized by your broker through excessive trading or churning. It is a a complicated process and requires significant legal analysis.
Results That Matter
For people who matter to us
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$16 Million+ Settlement
Business Fraud: This eight figure settlement was against a large insurance company. In this case, the plaintiffs argued the company had discriminated based on age and race, and had conspired to throw cases out based on this criteria.
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$2.5 Million Settlement
Breach of Contract Case: This $2.5M settlement was against a financier for breach of contract. Plaintiff alleged that this breach caused his development project to go bankrupt.
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$2 Million Settlement
Brokerage Breach of Fiduciary Duty.
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$1.7 Million Settlement
FINRA Violations Lead To a $1.7M Settlement: $1,700,000 verdict was delivered against an International Broker/Dealer for FINRA violations and unauthorized trading.
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$1.5 Million Settlement
Loss of Assets in Brokerage Account Case: Settled for $1.5M. This case involved the unauthorized transfer of assets, which also was an issue of elder abuse. It was resolved after arbitration.
recent news
read our securities & stock broker fraud blog
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Merrill Settles Claim for $4.25 Million Regarding Suitability Allegations -
Brian Leggett and Bryson Holdings, LLC v. Wells Fargo Clearing Services, et al
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FINRA To Hire A Law Firm to Review Arbitrator Selection After Judge Rebukes FINRA in Vacating a Wells Fargo Award
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$950,000 Fine to Merrill – Flawed Supervision Allowed Two Advisors to Steal $6M
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In An Order To Vacate Award By Wells Fargo, Judge Scolds FINRA Arbitration
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Read More On Our Securities & Stock Broker Fraud Blog
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Dan is a great lawyer who represented me in a car accident. He has years of experience and settled my case in a quick and timely manner.- Lee K.
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The lawyers at Miller Stern are top-notch! I have needed their services on several occasions and have referred them to family and friends.- Former Client
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Kevin Stern is an excellent lawyer with unmatched expertise, especially within the area of medical malpractice.- Kelly G.
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My daughter was in a car accident and was injured. We worked with Dan Miller throughout the process and received the settlement we deserved.- Andrew R.