Introduction
Broker misconduct isn’t always obvious. Many investors only realize something went wrong after the damage is done — when their retirement savings vanish or their portfolio performance doesn’t match market trends. If your broker hasn’t explained trades, if your losses seem unusual, or if your account activity doesn’t reflect your risk tolerance, you may be a victim.
This blog will walk you through warning signs and real-world examples from our recent $5.6M class action victory involving more than 30 victims of excessive trading, unsuitable investments, and unauthorized activity.
6 Signs You Might Be a Victim
1. Frequent Trading You Didn’t Authorize
If you’re seeing an unusually high number of trades — especially in volatile or complex products — you could be a target of churning.
2. Investments You Don’t Understand
Were you placed in leveraged ETFs, options, or margin positions without a clear explanation? Unsuitable investments are a common sign of misconduct.
3. Big Losses Despite a “Conservative” Plan
If your goal was capital preservation, yet your account suffered large, unexplained losses, your broker may have ignored your risk profile.
4. High Fees or Commission Charges
Some victims of our class action saw thousands of dollars lost just to commissions. A broker working in your best interest should not be draining your returns.
5. No Written Plan or Clear Communication
Ethical brokers explain their decisions, provide statements, and review investment strategies. If you’re left in the dark — that’s a problem.
6. You Were Told to “Trust the Process” Without Evidence
Blind trust isn’t a strategy. If you were told not to worry while your account shrank, it’s time to ask hard questions.
What You Can Do
- Request a trade history and compare it to your risk objectives.
- Speak with a financial attorney to review your case confidentially.
- Don’t wait — the longer you delay, the harder it may be to recover damages.
Lex Firm Global offers free portfolio reviews for clients who suspect misconduct.
Conclusion
Many victims of broker misconduct suffer in silence, unaware they’ve been manipulated or misled. If something doesn’t feel right — trust that instinct. At Lex Firm Global, we investigate, explain, and fight to recover what’s rightfully yours.
Contact us for a confidential evaluation. There’s no cost unless we win — and we never stop fighting for financial justice.