In the world of securities investments, "churning" refers to excessive movement of money between investment options, often for the purpose of generating activity fees or commissions for the licensed broker or investment adviser. Churning may also be a telltale of covering up losses or fraudulent practices that the adviser does not wish the client to discover.
For the investor, churning usually results in very little investment opportunity for gain and often results in significant brokerage fees, financial losses from selling options at a loss, and buying into other options at an inflated price.
If you have suffered significant investment loss or costs associated with churning your accounts by your licensed financial adviser or broker in New York City, talk to a member of our securities litigation team at Rosenbaum & Rosenbaum, P.C., on Wall Street in Manhattan.
- Churning, excessive movement of investments between account options
- Unsuitability of investments, improper imbalance of investment options
- Breach of fiduciary duty, failure to oversee growth opportunities for investments and trusts
- Investment fraud, theft of investment capital
In order to avoid costly lawsuits, the Securities and Exchange Commission (SEC) offers an arbitration process for investors seeking redress for negligence and misconduct by their brokers. We know the process and can help you determine whether an arbitration hearing is your best option for recovery.
Experienced New York City Excessive Trading for Commissions Lawyer
From offices on Wall Street, Rosenbaum & Rosenbaum represents clients in litigation matters throughout New York and the nation. Contact us to schedule a consultation with one of our experienced New York illegal stock churning lawyers today.