Stock Losses: Blaming the Broker

When if comes to cars, retired mechanic Jacob Froess knows exactly what to do. But when it comes to investing? He has no idea how to look under the hood.

“I don’t know anything about the stock market… I never paid any attention to that stuff.”
-Jacob Froess, Retired Mechanic

That’s why he avoided the stock market…or thought he did. But last year he went to his bank to renew a CD, and ended up in stocks anyway… And that’s why Jake hired a lawyer.

“Jacob understood and wanted a CD. He did not want and did not understand the recommendation that was made to him, and that was the basis for the alleged claim.”
-Mark Tepper, Securities Lawyer

So brokers aren’t to blame if you lose money. Just if they don’t explain the facts… or recommend things that are too risky for your situation.

“If your broker doesn’t tell you the full story, or tells you false information or your broker recommends something for you that isn’t right for you, then the broker has engaged in misconduct.”
-Mark Tepper, Securities Lawyer

As for Jake, the jury is still out. He’s hoping his case settles before he goes all the way to arbitration. But in any case, he’s certainly learned a valuable lesson.

“I’ll be very careful how I manage my money and who I listen to or trust ever again. So that nothing like this would ever happen again to me.”
-Jacob Froess, Retired Mechanic

Bottom line? Just because a good market goes bad doesn’t mean you get to blame the broker. But if you weren’t fairly treated… you were lied to… you were put in an investment that wasn’t suitable… there’s nothing wrong with talking to a lawyer, and maybe you should.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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