Part of preparing for your and your family’s futures may involve investing. Like others who entrust their investments to brokers or brokerage firms, you may depend on your advisor to guide you and look out for your finances. If your broker defrauds you, costing you assets, it may risk everything you have built and planned for.
Although a potentially arduous path, you may find avenues available to aid you in recovering the assets you lost as a result of your investment broker’s fraudulent actions.
Enforcement action restitution
According to finra.org, you may recover lost assets through restitution orders issued by the Financial Industry Regulatory Authority, Inc., or the U.S. Securities and Exchange Commission. In some cases, FINRA or the SEC may include orders for brokers or brokerage firms to make financial restitution to those they wronged. If ordered, you may receive a lump sum or regular payments over a duration of time directly from the SEC, and an appointed third-party fund administrator or a receiver.
You may also seek to recover lost assets by filing an arbitration claim through FINRA. Alternatively, you may also consider requesting mediation through FINRA or taking your matter to court. For FINRA to consider your request, you must submit it within six years of the alleged fraudulent activity.
While they may not make you whole, investor programs and funds exist to help investors defrauded by their brokers. If eligible, you may receive penalties from the Fair Fund or limited protections from the Securities Investor Protection Corporation.
Losing assets due to the fraudulent actions of a broker or brokerage firm may jeopardize your future financial security. However, paths for attempting recovery exist, which may help restore your financial stability and peace of mind.