Recognized in the Industry
Badge - AV Preeminent 2020
Badge - Best Attorneys of America
Super Lawyers
Badge - Badge - Avvo Rating 10.0 Top Attorney
Martindale-Hubbell Client Reviewed
Expertise - Best Employment Lawyers in New York City
Avvo Reviews
NYC Bar Association

Investor Claims - Part 2

Causes of Action: Part 2

In today’s tumultuous markets, we can really see that overconcentration in one sector (like technology) can be big mistake – and your investment professional should know better, and your brokerage firm or Registered Investment Advisor Firm should also be supervising both your investment professional and your account. Diversification is key. The New York investment unsuitability lawyers at Malecki Law know that be it overconcentration, churning, elder fraud, Ponzi schemes or unauthorized trading, your broker should have known better than to put you in those cross-hairs.


3. Overconcentration

Failing to diversify your investments over different asset classes (type of security, i.e., stock, bond, mutual funds, cash, etc.) and sectors (health care, financials, automotive, pharmaceuticals, consumer goods, technology, international, etc.), as well as "overconcentration" in any one of those areas, or even in a single stock, may be the reason for your losses and an actionable claim against your broker and his firm for allowing this to happen.

Back to Investors - Main Page


4. Elder, Affinity, and Minority Fraud and Ponzi Schemes

Dealing with senior citizens and those approaching retirement requires special care and planning. Many seniors are not up to date on the latest market trends, products, and strategies, as well as generally have special needs when it comes to liquidity, income, and safety. Preying om the needs of seniors and vulnerabilities, scurrilous professionals often try to market more speculative income-producing products to at or in retirement investors, which have income features, but also greater hidden risk (and bigger commissions). If you find yourself having experienced greater than expected losses and you are in or approaching retirement, that special care and planning may have been missing and Malecki Law’s New York investment unsuitability lawyers will carefully review your documents and information to determine what claims best fit your circumstances.

Affinity fraud is defined as fraud specifically committed against members of a unified group. Examples include schemes that target the elderly (often within the same community), religious institutions, persons of a particular ethnicity, or professional organizations. Fraud is often committed by one who indoctrinates into the group in question, by convincing community leaders and other members that he or she is a friend and that a crooked investment is legitimate. Many affinity scams involve “Ponzi” or pyramid schemes, wherein new investor money is paid to prior investors, to falsely make the investment appear profitable. In actuality, much or all of the money is stolen by the schemer(s).

Investment unsuitability law firm in New York, Malecki Law, knows first hand, having represented hundreds of Ponzi victims, that Ponzi schemes aren’t suitable for anyone – they are a fraud that the broker and brokerage firm should have caught and stopped.

Back to Investors - Main Page


5. Churning / Overtrading

Churning refers to the excessive account trading for the broker’s own commissions and/or profit, while exercising control over your money. Control is exercised in situations when an investor is unable to evaluate recommendations and a judgment is made by the broker on the investor’s behalf, whether or not it was discussed with the investor. Overtrading is essentially the same as churning but refers to excessive trading that is not in line with the customers’ need and objectives.

Back to Investors - Main Page


6. Unauthorized Trading

A broker’s trading of your account without asking your permission. Even if a security was discussed between you and your broker in a general sense, a customer must give permission for the specific security, in the specific amount and on the specific day the order is placed (which must be contemporaneous with that discussion, not at a different time in the day because markets can move and firms must provide customers’ with the “best execution,” a term of art and rule in the industry).

When you have a brokerage account, you have the right to be well informed about your investments and investment unsuitability attorneys in New York at Malecki Law will hold your brokerage firm or registered investment advisor accountable for taking that control away from you and not following what was in your best interest.


Attorney Advertisement. Prior results do not guarantee a similar outcome.

Testimonials From Former Clients
★★★★★
I highly recommend Jenice and her team at Malecki Law. I had a challenging, and lengthly case. Jenice was professional, very knowledgeable, and a pleasure to work with. She managed to make the process far less stressful during a very difficult time. They care about their clients, and it definitely shows. Mario
★★★★★
Jenice is truly a miracle worker and one of the top securities lawyers. She handled a very difficult case for us, displaying her legal knowledge, intelligence, and savviness throughout the process. I cannot recommend her enough. The quality of work from her team rivals that of corporate law firms. She was always available, extremely professional, and made sure to know all the details of the case. We were very fortunate to have been referred to Jenice and highly recommend her for any securities related legal issues. Nathan A.
★★★★★
An excellent professional who represented us in trial regarding a bank fraud, an unexpected and difficult time. A professional that worked hard, persevering and who stood toe to toe against firms that had a team of excellent lawyers backing them up. Her unflinching determination really stands out, it makes you feel you have someone who really cares about trying to recover what you lost from the people that wronged you. Salomon Levi
★★★★★
It is difficult to thank you in words when gratitude comes from the heart, so I will try to link feelings with writing. It is essential for us to mention your excellence as a professional, your aptitude on legal fields, and your unavoidable persistence. All of these virtues that elevate the profession you exercise in such an admirable way, go hand in hand with your sense of ethics, your human warmth and the transparency in your actions. To sum up, thank you for being a listening ear and for having the right word while transmitting information about the legal process. Having you as our representative during such an adverse situation was a privilege and enough reason for our eternal gratitude. Angeles Aparain
★★★★★
To say that my securities litigation was complex would be a severe understatement. With multiple parties involved and spanning many years, trying to understand the issues was daunting to say the least. Jenice and her team broke down the transactions by segment and by party uncovering every hidden expense. In the end, I was more than happy and could not thank Jenice and her team enough. I would not hesitate to recommend Jenice to anyone. She is highly professional, incredibly knowledgeable, well connected to industry experts, has a tireless work ethic and is so pleasant and easy to communicate with. Five stars for sure! Andrew Loughrane