Auction Rate Securities Fraud Lawyer

ARS Fraud: A White Collar Crime

The recent failure of auction-rate securities has caused many investors a great deal of economic hardship. While a variety of financial institutions are agreeing to repurchase many auction-rate securities investments, some investors have still not been compensated for their losses.

Auction-rate securities fraud is a form of professional misconduct on the part of brokers and is considered a white collar crime. A white collar crime is defined as a crime that is committed by a person who is respected and of a high social status in accordance with his or her occupation. Other examples of white collar crimes include bribery, embezzlement, forgery, fraud, and insider trading.

Brokers have a professional responsibility, both ethically and legally, to act in the best interest of their client. They are responsible for considering whether or not an investment is appropriate for their client. This includes considering whether potential investments coincide with a client’s investment goals and risk tolerance or whether the broker is simply making investment decisions that benefit themselves in terms of commission. It should be the broker’s first priority to protect and encourage the growth of a client’s investment.

When brokers fail to properly manage a client’s investment, it is termed broker misconduct. If you or a loved one has experienced the financial hardships associated with the failure of auction-rate securities, contact an attorney immediately. A skilled auction-rate securities fraud lawyer will be able to help you through the arbitration process to ensure that you are compensated for your losses.

For more information about your legal rights, call the auction-rate securities lawyers of Williams Kherkher at 1-800-220-9341.