Churning

Recovering Investment Losses Caused by Churning

Churning or excessive trading happens when a stockbroker buys or sells stocks or other securities for the primary purpose of generating commissions rather than because the trades make financial sense for the investor. The commissions associated with the trading can make it difficult or nearly impossible for your account ever to be profitable. If you suspect that your account assets have been eroded by churning, or if frequent sales of profitable or “winning” stocks have disguised poor overall performance in your portfolio, contact a knowledgeable securities arbitration attorney at Dimond Kaplan & Rothstein.

We represent investors all over South Florida and throughout the United States in stockbroker misconduct claims, including churning. We know how to spot the signs of stock, bond, mutual fund or annuity churning. Excessive trading by a broker hungry for commissions violates the fundamental principle that the client's interests should always come first.

In a churning case, our analysis of the broker’s trading in your account often will show that your broker sold your profitable investments quickly and that your broker held onto losing investments. The frequent gains realized when profitable investments were sold created the illusion that your portfolio was performing well. Unfortunately, the stocks and bonds that were losing money often were left to languish in your account.

Our lawyers have worked in the securities industry and know the ropes

With direct experience working at brokerage firms, our attorneys can recognize churning and more significantly, we know how to prove it before a FINRA arbitration panel. We also present evidence of how your actual account performance fell short of what would have been achieved through proper management of your investments.

Clients anywhere in the United States or overseas can benefit from our knowledge of brokerage firm practices and securities arbitration procedures. For a free consultation about your potential churning claim, contact Dimond Rothstein & Kaplan to take the first step toward recovering your investment losses.