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Churning

The securities attorneys of Heritage Law Office have represented many investors who have lost their life savings due to the fraudulent and unethical practices of their financial advisors. One of the most common ways we see investors being taken advantage of is through "churning." 

Churning is defined by FINRA as "a type of securities fraud that involves excessive buying and selling of securities in a client's account primarily to generate commissions that benefit the broker. Churning violates FINRA Rule 2111." In other words, it is when a financial advisor excessively buys and sells securities in a client's account to generate commission fees, without regard for the client's best interests. 

This type of activity can obviously be very harmful to the investor, as it erodes away at their investment capital, leaving them with little to show for it in the end. Unfortunately, this type of fraud is all too common. If you believe that you or someone you know has been a victim of churning, we encourage you to contact us for a free consultation by sending us a message or giving us a call at 414-253-8500.

How do you know if you've been a victim of churning?

There are several signs that may indicate that your financial advisor has engaged in churning. These include:

  • Your account statements show frequent buy and sell activity
  • You feel like you're always being asked to sign new documents
  • The investments in your portfolio frequently change
  • You're not getting timely updates from your advisor about what's going on in your account
  • Your investment objectives seem to have changed without your knowledge or consent
  • You're not seeing the results you were expecting given the level of risk you were told you were taking on

If you see any of these red flags, it's important to take action right away and contact an experienced securities attorney. 

Contact a Securities Attorney in Wisconsin Today

At Heritage Law Office, we are dedicated to fighting for the rights of investors who have been taken advantage of by their financial advisors. We have experience handling cases involving churning and other types of securities fraud, and we are here to help. If you believe that you may have been a victim of churning, please contact us today by sending us a message or giving us a call at 414-253-8500 for a free consultation. We look forward to speaking with you.

Contact Us Today

For a comprehensive plan that will meet your needs or the needs of a loved one, contact us today. Located in Downtown Milwaukee, we proudly provide legal advice to those in Milwaukee County and surrounding communities.

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