OUR ATTORNEYS HELP THOSE WHO HAVE LOST INVESTMENTS DUE TO CHURNING
What Is Churning?
Churning refers to the excessive buying and selling of securities in your account by your broker, for the purpose of generating commissions and without regard to your investment objectives.
If you think your broker may be churning your account, it’s important to contact a lawyer who can hold him or her liable. The attorneys at Mihalek Law have more than 50 years of combined experience protecting investors against broker misconduct. Although we are based in Lexington, Kentucky, our Wall Street background allows us to level the playing field against the securities industry — the most powerful industry in the world.
What Does The Law Say About Churning?
For churning to occur, your broker must exercise control over the investment decisions in your account, either through a formal written discretionary authority in practice. For example, if you routinely rely on your broker’s advice because you are unable to evaluate the broker’s recommendations and exercise your own judgment, your broker may exercise control over your account. Churning can be a violation of SEC Rule 15c1-7 and other securities laws.
FINRA, the primary securities industry self-regulatory organization, has rules prohibiting churning and excessive trading. Excessive trading is the same as churning, but without the requirement that the person engaging in the trading does so for the purpose of generating commissions.
Contact Us If You Have Been The Victim Of Excessive Securities Trading
If you believe that you have been damaged by the actions of your stockbroker or financial adviser, contact our attorneys to schedule a free initial consultation. We can be reached through our contact form or by calling 859-233-1805.