Wall Street Fraud
Avoiding Investment Fraud
Checking Out your Investment Advisor or Stockbroker
Category: Avoiding Investment Fraud
I have previously told investors how to get background information about a financial consultant (stockbroker) who is registered with the NASD. One goes to the NASD website. There you can find information about that financial consultant's licenses, employment history, arbitrations against him or her and disciplinary history.
There are many financial consultants who are not registered with the NASD. They are instead registered with the SEC. More than 11,000 investment advisor firms and 173,000 investment advisors are registered with the SEC. To check on the firm's background, go to the SEC website under "Check Out Brokers & Advisers" under Investor Information. That will take you to a firm's "Form ADV." That
form tells an investor if the firm has had regulatory problems or lawsuits. To get an individual investment advisor's background information, one can do that by asking the investment advisor or contacting your State Securities Regulators.
Affinity Fraud-Don't Be A Victim
Category: Avoiding Investment Fraud
Affinity fraud occurs when a swindler gains the trust of a group such as a church, community service group or ethnic society and uses that trust to defraud the members of that group. The North American Securities Administrators Association ( NASAA) has identified affinity fraud as one of the ten frauds most perpetrated against people. My law firm has assisted victims of affinity fraud when the swindler also worked for a legitimate insurance agency or brokerage firm and we have brought a lawsuit against the insurance agency or brokerage firm as the employer of the swindler.