Most stockbrokers are incentivized to trade your account more actively, because the more that they trade, the more commissions they make (regardless of how the account performs). There are several technical formulas in the industry that we use to determine if an account has been churned. These calculations are part of our standard damage analysis, so when we have your numbers run, the resulting report will tell us if your account has been churned. Churning an account is bad for the investor, because your ability to make a profit is hampered if you are paying a lot in commissions. Stoneman Law has handled many churning cases.
One of the hallmarks of proper investing is that of diversification, spreading your investments out over different investments, asset classes or market segments. Stoneman Law sees a significant number of cases where stockbrokers have improperly concentrated an investor's portfolio in stocks vs bonds or illiquid investments such as private placements, variable annuities or REITS. Illiquid investments pay the stockbroker much higher commissions than liquid investments. Stoneman Law has successfully represented hundreds of investors with concentration cases.
I am amazed how many investors are unaware that their stockbroker is required to speak to them before each and every trade, whether it be a buy or a sell. FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) prohibits brokers from making unauthorized transactions in their customer's accounts. It doesn't matter if you verbally give your broker permission to trade without talking to you. A small percentage of accounts are true discretionary accounts where you sign a document that makes it very clear that you are giving discretion to your broker to make all trading decisions. The vast majority of customer accounts, though, are non-discretionary. Unauthorized trading cases are one of Stoneman Law's specialties.
Although most of Stoneman Law’s work is representing investors in claims against brokerage firms, Stoneman Law also represents stockbrokers in claims they have against their firms. In other words, Stoneman Law will take cases against brokerage firms, whether the claim is by an investor or by a stockbroker. Stockbroker claims usually involve wrongful termination or defamation claims arising from language the brokerage firms put on the Form U-5 that can impair a stockbroker’s ability to get another job within the brokerage industry. These cases have allowed me to get an inside look at brokerage firms that I would otherwise not have.
Most stockbrokers are incentivized to trade your account more actively, because the more that they trade, the more commissions they make (regardless of how the account performs). There are several technical formulas in the industry that we use to determine if an account has been churned. These calculations are part of our standard damage analysis, so when we have your numbers run, the resulting report will tell us if your account has been churned. Churning an account is bad for the investor, because your ability to make a profit is hampered if you are paying a lot in commissions. Stoneman Law has handled many churning cases.
Ms. Stoneman's special skills include superb client contact, writing skills, and oral presentation. She is regarded in the industry as enthusiastic and aggressive. Ms. Stoneman is a solo practitioner because she recognizes that for many, even
hiring a lawyer can be intimidating. Rather than shuffling you to a junior, less experienced attorney, as some attorneys do, Ms. Stoneman is accessible at virtually all times and will be the only person handling your case. There are a
number of firms that specialize in securities arbitration. But far too often, through their marketing efforts, these firms generate a large number of leads and potential cases.
Clients are often simply a number in a large base of
cases. Not so with Ms. Stoneman. She purposefully keeps her case load small so that her clients receive the best representation possible.It is critical that the attorney you hire have experience in securities arbitrations. Even an experienced
"trial attorney" can be a fish out of water in a securities arbitration. A different set of rules applies than in court. Client preparation is paramount - in a court case, the parties tell their story more than once - once in a deposition
and then again at trial. Not so in securities arbitrations, because depositions are rarely allowed. It is critical that your attorney properly prepare the client for the sometimes tricky and deceitful onslaught of questions by opposing
counsel. It is also paramount for your attorney to be in command of all of the facts of your case. Only then will your attorney be able to think quickly on her feet to formulate questions and respond in the arbitration.
Ms.
Stoneman excels in this area and feels that if a lawyer doesn't have the time, the ability or the inclination to represent a client fully and completely in these ways, then the case should not be taken. It is this individualized attention
to clients and cases that allows Ms. Stoneman to maximize the positive results she obtains for clients.
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