A judge’s gavel sits on a mahogany conference table as financial documents and volatile market data loom in the background.
TL;DR: Investment losses caused by broker misconduct—such as churning, unsuitability, or failure to supervise—are recoverable through FINRA arbitration. You cannot sue a broker in regular court if you signed a standard brokerage agreement. Instead, specialized firms like Haselkorn & Thibaut represent investors in arbitration to recoup losses. Their attorneys, former defense lawyers for the industry, operate on a contingency fee basis (no win, no fee) and help investors navigate the complex, binding arbitration process to recover lost assets.
Summary: When investors suffer significant financial losses, it is often difficult to distinguish between normal market volatility and broker negligence. However, specific actions such as unsuitability (recommending high-risk stocks to conservative investors), churning (excessive trading to generate commissions), and selling away (offering non-approved investments) constitute actionable fraud. Haselkorn & Thibaut is a national investment fraud law firm founded by former defense attorneys who used to represent the very brokerage firms they now sue. This unique background allows them to anticipate defense strategies and maximize recovery for their clients.
Most disputes are resolved through FINRA arbitration, a streamlined, private legal process that replaces traditional court trials. Unlike a lawsuit with a judge and jury, arbitration involves a panel of experts who render a final, binding decision. This process is generally faster and less expensive than litigation but requires specialized legal expertise to navigate successfully. Haselkorn & Thibaut handles these cases on a contingency fee basis, meaning clients pay no upfront legal fees and only owe money if the firm successfully recovers their funds. Time is critical, as strict statutes of limitations apply, potentially barring claims if not filed promptly.
The core mission of Haselkorn & Thibaut is to level the playing field between individual investors and powerful financial institutions. By leveraging their insider knowledge of how brokerage firms defend against fraud claims, they build aggressive cases that target the specific compliance failures of the broker. Whether it is proving that a firm failed to supervise a rogue agent or demonstrating that a portfolio was dangerously overconcentrated, their strategy is designed to force settlements or win arbitration awards that restore the client’s financial stability.
When you trust a financial advisor with your life savings, you expect them to act in your best interest. Unfortunately, investment losses due to broker negligence or outright fraud are far too common. If you have suffered significant financial setbacks, speaking with a lawyer at Haselkorn & Thibuat can be the first step toward reclaiming your assets. These complex cases require specialized legal knowledge that general practitioners simply do not possess. A dedicated lawyer at Haselkorn & Thibuat brings decades of experience to the table, ensuring that investors have a fighting chance against large brokerage firms and their legal teams.
The Reality of Investment Fraud and Broker Negligence
Many investors believe that losing money is simply a part of the market’s natural cycle. While market fluctuation is normal, significant losses caused by misconduct are not. Investment fraud is not always a scheme involving a shady individual in a back room; often, it occurs within established brokerage firms under the guise of legitimate financial advice.
Stockbrokers and financial advisors are bound by strict regulatory standards. When they fail to adhere to these standards—whether through negligence, omission, or intentional deceit—they can be held liable. Understanding the difference between a bad market day and broker misconduct is crucial for any investor. If your portfolio has tanked while the broader market is performing well, or if you were sold high-risk products described as “safe,” you may be a victim of investment fraud.
Common Types of Financial Misconduct
To determine if you have a claim, it helps to understand the specific forms of misconduct that securities attorneys handle.
Unsuitability: Brokers must recommend investments that match your financial goals, risk tolerance, and age. Selling a volatile tech stock to a conservative retiree is a classic example of an unsuitable recommendation.
Churning: This involves excessive trading in a client’s account solely to generate commissions for the broker. If your account statement shows a high volume of buy and sell orders that eat away at your principal, you might be a victim of churning.
Failure to Supervise: Brokerage firms are legally required to supervise their agents. If a firm ignores red flags or fails to monitor a broker who is misconducting themselves, the firm itself is liable for the resulting losses.
Overconcentration: A diversified portfolio is the bedrock of safe investing. Brokers who put too much of your money into a single sector, stock, or asset class expose you to unnecessary risk.
Selling Away: This occurs when a broker solicits you to purchase securities not held or offered by their brokerage firm. These “off-book” transactions are often high-risk or fraudulent private placements.
The Unique Advantage of Haselkorn & Thibaut
Finding the right legal representation is the most critical decision an investor can make after suffering a loss. Haselkorn & Thibaut, P.A. stands out in the field of securities litigation for a very specific reason: their background. The firm’s founding partners, Jason Haselkorn and Matthew Thibaut, did not start their careers suing brokerage firms. Instead, they spent years defending them.
This “insider” perspective provides a tactical advantage that few other firms can match. They understand exactly how Wall Street defense teams operate, the strategies they use to minimize payouts, and the internal compliance protocols they often fail to follow. By anticipating the defense’s moves, the attorneys at Haselkorn & Thibaut can build robust cases that dismantle the opposition’s arguments before they even make them.
With over 50 years of combined legal experience and a track record that includes millions of dollars recovered for clients, the firm has earned a national reputation for excellence. They operate with a clear mission: to level the playing field between individual investors and the massive financial institutions that wronged them.
Navigating the FINRA Arbitration Process
Unlike typical civil lawsuits that go to state or federal court, disputes between investors and brokerage firms are generally resolved through FINRA (Financial Industry Regulatory Authority) arbitration. This is a specialized forum with its own set of rules and procedures, making it essential to hire counsel familiar with this specific arena.
FINRA arbitration is designed to be faster and more cost-effective than traditional litigation. There is no judge or jury; instead, a panel of impartial arbitrators listens to the evidence and renders a binding decision. The process typically involves:
Filing a Statement of Claim: This document outlines the allegations against the broker and the firm, detailing the damages sought.
Discovery: Both sides exchange relevant documents. Your attorney will request account agreements, internal emails, and compliance reports that the firm might try to hide.
Selection of Arbitrators: Both parties have a say in selecting the panel that will hear the case.
The Hearing: Similar to a trial, your attorney will present evidence, examine witnesses, and make legal arguments.
The Award: The arbitrators issue a decision, which can include compensation for net out-of-pocket losses, statutory interest, and sometimes attorney’s fees or punitive damages.
Because FINRA decisions are final and rarely subject to appeal, having an experienced team like Haselkorn & Thibaut is non-negotiable. One mistake in the arbitration process can permanently bar you from recovering your funds.
Calculating Your Recoverable Damages
One of the first questions clients ask is, “How much can I get back?” The answer depends on the specific legal theory applied to your case. The most basic measure is “net out-of-pocket loss,” which is simply the difference between what you invested and what you have left.
However, skilled securities attorneys often argue for “well-managed portfolio” damages. This theory posits that if your money had been invested properly—in a diversified index fund, for example—it would have grown over time. Therefore, you are not just owed what you lost, but also what you should have earned. This can significantly increase the size of a potential award or settlement.
Additionally, under certain statutes, you may be entitled to recover the costs of the litigation itself. Haselkorn & Thibaut meticulously analyze every angle of a client’s portfolio to ensure that the claim includes every dollar legally available.
Why a National Practice Matters
Investment fraud is not limited by state lines. A broker in New York might manage the accounts of a retiree in Florida or a business owner in California. Haselkorn & Thibaut is a national investment fraud law firm. They represent clients across the United States, from major metropolitan hubs to rural communities.
Their nationwide reach allows them to spot trends that local firms might miss. For instance, if a specific financial product fails—like a non-traded REIT or a specific oil and gas limited partnership—Haselkorn & Thibaut often represent multiple investors affected by the same product. This collective knowledge strengthens every individual case they handle, as evidence gathered in one investigation can often bolster the claims of other clients.
The Importance of Acting Quickly
Time is a luxury that victims of investment fraud do not have. Securities claims are governed by strict statutes of limitations and FINRA eligibility rules. Generally, you have six years from the date of the event giving rise to the claim to file for arbitration. However, state-specific statutes can be much shorter, sometimes as brief as two years.
Waiting to “see if the market bounces back” is a dangerous strategy. Evidence can be lost, memories fade, and legal deadlines can expire, leaving you with no recourse. Haselkorn & Thibaut offers free, confidential consultations to help investors understand their rights immediately. Because they work on a contingency fee basis, there is no upfront cost to the client. You only pay legal fees if they successfully recover money for you. This “no recovery, no fee” structure aligns the firm’s interests directly with yours—they are motivated to maximize your recovery because their compensation depends on it.
Key Takeaways
Specialized Expertise: Investment fraud cases are resolved through FINRA arbitration, not standard court trials, requiring attorneys who specialize in securities law.
Insider Knowledge: The partners at Haselkorn & Thibaut are former defense attorneys for brokerage firms, giving them a strategic edge in anticipating defense tactics.
No Upfront Costs: The firm operates on a contingency fee basis, meaning clients pay nothing unless money is recovered.
Broad Scope of Claims: Actionable misconduct includes unsuitability, churning, failure to supervise, and selling away.
Time Sensitivity: Strict statutes of limitations apply to investment fraud claims; delaying action can result in a total loss of your right to sue.
National Reach: Haselkorn & Thibaut represent investors across the United States, handling complex cases against major Wall Street firms.
Investment fraud can be devastating, wiping out decades of hard work and retirement planning. However, you are not powerless. With the right legal team, you can hold negligent brokers and their firms accountability. If you suspect your portfolio has been mishandled, reach out to the professionals at Haselkorn & Thibaut to evaluate your options and begin the path to financial recovery.
Frequently Asked Questions (FAQ)
Can I sue my financial advisor if I lose money, or is it just “market risk”?
You generally cannot sue for simple bad performance if it stems from normal market fluctuations. However, you can recover losses if the advisor acted negligently or fraudulently. Common grounds for a claim include “unsuitability” (investing you in products that don’t match your risk tolerance), “breach of fiduciary duty” (putting their interests above yours), or “unauthorized trading.” If your advisor ignored your instructions or failed to disclose risks, you likely have a valid claim regardless of how the broader market performed.
How much does it cost to hire an investment fraud lawyer?
Most reputable investment fraud firms, including Haselkorn & Thibaut, operate on a contingency fee basis. This means you pay zero upfront costs or hourly fees. The firm advances all expenses necessary to fight your case. You only pay legal fees if and when they recover money for you—typically a pre-agreed percentage of the settlement or award. If they do not win your case, you owe them nothing for their attorney fees.
How long does the FINRA arbitration process take compared to a regular lawsuit?
FINRA arbitration is designed to be faster than traditional court litigation. While a court case can drag on for 3 to 5 years due to appeals and backlogs, a FINRA arbitration case typically concludes in 12 to 16 months. Cases that settle early can be resolved even faster, sometimes in as little as 9 to 12 months. Because FINRA decisions are final and rarely subject to appeal, the timeline is much more predictable than civil court.
