Stock Fraud Claims

Depending on what state you live in, there are various definitions of fraud as construed by the courts. In essence fraud by a broker occurs when he makes to you a representation that he knows is false and intends that you act on that representation and that in doing so you suffer damages.

For example, if a broker recommends that you sell a security, such as an annuity, in order to buy another security, possibly another annuity which he says is better for you and he knows it is not better and in fact may be worse, he may have committed fraud.

Brokers sometimes make such fraudulent recommendation to earn additional commissions.