The world has slipped away from the hands of trust and securities into the wide deep hands of a dubious and malicious entity, thereby; leaving all sectors of the economy in jeopardy and unending paranoia state.
Many investors have invested long before now and have had a fair share of the investment returns, however, these days, a large number of investors have resorted to feeding their money with the gentle breeze flowing out of the air condition system of banks than disbursing their resources (money) on a storm that keeps blowing it all away.
Investors have fallen into all sorts of deeps dug by variable entities such as financial advisors selling unapproved investments, financial advisor negligence, annuity fraud and misrepresentation, securities fraud, margin disputes, Ponzi scheme, life insurance disputes, and many more and have needed the urgent intervention of advocates to salvage the situation.
Annuity Fraud Misrepresentation
Disputes most time arise in connection with the sales of annuities. Consumers may allege that the sales agent did not fully disclose or describe the complexity of the formulas used to determine the rate of returns the risks (this arises in the sale of equity-indexed annuities) the risk associated with the investments that may be purchased within the annuity itself (this arises in the sale of variable annuities), or the scope and extent of the surrender or withdrawal charges that may be incurred (this arises in the sale of any type of annuity).
Customers also may allege that the sales agent allegedly represented not only orally but in writing, that the annuity provides certain benefits and features (such as guaranteed rates of return) that simply are not available upon review of the fine print of the annuity policy.
Financial Advisor Negligence
One of the key importance of a financial advisor is to critically analyze the risks of investments and be able to secure a safe landing for his/her client’s financial expenditure. However, if a financial advisor fails to perform to the standard of care expected of him/her, this can often result in the client incurring significant losses. In recent years, there has been an increase in the number of claims brought against financial advisors and this is due to negligent advice or errors in the administration of financial products.
Examples of circumstances in which a financial advisor may have been negligent include:
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Failing to advise on the risk involved in taking a specific investment option
Failing to consider or wrongly assessing a client’s attitude towards risk when investing in a product
Wrongly selling financial products or investments to a client, or failing to follow a client’s instructions.
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Securities Fraud
Securities fraud, likewise known as stock fraud and/or investment fraud is a deceptive practice in the stock and commodities markets that induces investors to make purchase or sale decisions based on false information and this frequently results in losses and violation of securities laws.
Securities fraud may also include outright theft from investors such as; embezzlement by stockbrokers, stock manipulation, misstatements on a public company’s financial reports, and/or lying to corporate auditors. This term encompasses a wide range of other actions, including insider trading, front running, and other illegal acts relating to stock or commodity exchange.
CONCLUSION
Numerous laws guide the affairs of every business, investment, and other entity. Investors have incurred losses on investments due to countless reasons; some never recovered from those losses and those who recovered lived with the ugly memory of that loss incurred.
A larger percentage of these losses could have been recovered only if investors knew advocates who could spell out the laws to recover their losses.
The efficacy of losses began to lose relevance with the emergence of a competent organization that primarily advocates for investors with legal experience prowess in making recoveries for clients.
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