Enron. Worldcom. Qwest. Adelphia. Corporate fraud and scandals have cost investors billions of dollars just in the past few years. Munley, Munley & Cartwright’s securities fraud practice group is dedicated to protecting the rights of investors against such corporate deceit and other unfair, deceptive or fraudulent business practices.

Our firm represents individual clients, institutional investors and class representatives in a variety of cases, including securities, consumer fraud, defective products, employment, unfair trade practices, whistleblower, civil racketeering and class action. If you believe that you may have been a victim of securities fraud, you have certain rights which you should be aware of, rights which may provide you an opportunity to recover your losses from your stockbroker or brokerage firm.

Federal and Pennsylvania state laws provide individual and institutional investors with remedies for securities fraud by companies issuing securities, their officers and directors, underwriters, and accounting and other professionals who may be involved in the fraud. Common claims include “fraud on the market,” where a company artificially inflates or maintains the market price of its stock by misrepresenting or failing to disclose the company’s true financial performance. Other forms of securities fraud include:

  • Churning
  • Misrepresentation
  • Excessive trading
  • Unsuitability
  • Unauthorized transactions
  • Surprise margin calls
  • Breach of fiduciary duty

If funds are properly invested, large stock market losses should be only rare occurrences. Unfortunately, that is not the case and is often the direct result of financial advisor or broker’s negligence, dishonesty or even fraud.

Nearly all brokers and brokerage firms are regulated by the NASD, an organization, formerly known as the National Association of Securities Dealers, which represents people and companies in the securities industry in the U.S. It is also the primary organization responsible for regulation of the securities industry, with oversight from the Securities and Exchange Commission. Most allegations of fraud may be prosecuted under the provisions of the Securities Exchange Act of 1934.

Often, investors who have been defrauded are unaware of it, until it is too late. However, the securities fraud team at Munley, Munley & Cartwright knows that the law provides a mechanism for investors to recover losses caused by a stockbroker’s misrepresentations or abuse of the account. Investors may also be entitled to compensation for the loss of income that their investments should have been generating, interest on the losses and legal fees.

Our attorneys will first attempt an efficient and economical resolution of stockbroker/customer disputes through arbitration. Stockbrokers and brokerage firms are subject to binding arbitration of complaints regarding customer accounts. This provides the opportunity for defrauded customers to present their claims before an impartial panel of arbitrators whose decision will be binding on all the parties.

We believe that most investment advisors and stockbrokers are honest, decent individuals who follow the rules of the securities industry and provide a valuable service to the public. Unfortunately there are some unethical and dishonest investment advisors, and there are some brokerage firms that do not supervise their brokers and accounts as carefully as they are required. Some of those types of cases include the following:

  • CSFB Stock Fraud
  • Goldman Sachs Stock Fraud
  • Merrill Lynch Stock Fraud
  • Smith Barney Stock Fraud
  • Worldcom Stock Fraud

Please read more information across the nation in our News Articles on Securities Fraud in each section listed above.


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