Because many ordinary investors are busy and lack market expertise, they trust brokers to handle the day-to-day management of their investments. Often, this involves granting brokers the right to make trades without seeking the investor's permission.
Brokers often make a commission based on every trade. As such, there is often an incentive to make a great deal of trades for the sole purpose of racking up commissions. This practice is known as churning, and it is illegal and unethical.
At Colling Gilbert Wright & Carter, our stockbroker fraud attorneys have helped clients like you who were bilked by brokers who engaged in churning.
Churning can be difficult to prove. In some cases, a large volume of trades can be justified as serving the client's interests. Of course, it's not easy for investors to determine when they are being cheated and when they are being loyally served.
Our stockbroker fraud attorneys can bring clarity to the situation. We know what qualifies as fraud and we understand how to determine if you've been the victim of churning. And if you have, we know how to make a compelling case on that point.
If you want to speak to our experienced stockbroker fraud attorneys about possible churning, please contact Colling Gilbert Wright & Carter today for a free consultation.