Investment Fraud

A: Just as with brokers, you can check his or her background on FINRA.  In addition, you can check with the Pennsylvania department of Banking and Securities or the SEC .  If the advisor has a history of discipline, that can inform additional claims you may have against the advisor’s employer/firm.

A: Consumers are protected under the Unfair Trade Practices and Consumer Protection Law (“UTPCPL”) for investment services.  The purpose of the law is to protect Pennsylvania residents from fraud or misleading conduct in the sale of goods or services.  In the context of investments, the UTPCPL allows individuals to bring claims for false or misleading representations in the sale of investment products.  This comprehensive law is designed specifically to protect Pennsylvania consumers and permits the recovery of treble damages and attorneys’ fees.  Horne Daller LLC has routinely brought claims against investment professionals and advisory firms under the UTPCPL, as well as under the Pennsylvania Securities Act or under the common law of Pennsylvania, which permits claims for fraud, misrepresentation, breach of contract, breach of fiduciary duty, negligence and the like.

A: Out-of-pocket losses are one component of recovery, however, there are other losses that may be entitled to recovery.  For example, the lost growth that would have been realized on your account or returns you were promised your account would realize.  Pennsylvania’s Unfair Trade Practices and Consumer Protection law permits recovery of treble damages and attorneys’ fees.  Under Pennsylvania common law, you may be able to recover punitive damages.

A: Our services include theft of client funds, failure to supervise, breach of fiduciary duty, fraud and misrepresentation, breach of contract, suitability claims, Ponzi schemes, negligence, violation of the Pennsylvania Unfair Trade Practices and Consumer Protection, violation of the Pennsylvania Securities Act and other unfair or deceptive acts or practices.

A: You should receive regular statements from the advisory firm or brokerage company.  If you receive reports only from your investment professional, that is a red flag.  You should be on the lookout for overconcentration of your funds in a specific investment vehicle.  By way of example, overconcentration in one industry, such as oil and gas, can make your portfolio too risky.  Placing your funds in “illiquid” products, means you cannot easily or readily withdraw the funds, that is another red flag.  Problems can also arise if your investment portfolio does not match your risk tolerance which is an assessment financial advisors or brokers are required to undertake.  Horne Daller LLC has decades of experience in addressing these and other examples of breach of fiduciary duty.