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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Was It Fraud Or Negligence?

After carefully selecting the right investment advisor and countless hours spent researching investment options, you finally felt confident enough to invest the money you've worked so hard to acquire. You knew there were risks involved, as there always are when you want your money to earn money. You understand how the process works, and you finally took the leap.

But that doesn't stop the onset of panic when you find out your initial investment took a major hit. Any loss of money is devastating, and you understandably want to find out why it occurred.

While it's important to remember that not all loss is because of anything the investment advisor did wrong, it's also important to remember that sometimes it is. If your loss is determined to be a result of fraud or negligence, your advisor could be held accountable for his/her wrongdoings.

How do I know if it was bad luck or a bad advisor?

Bad investments happen, even with good information and great intentions. But unfortunately, there are also deceptive advisors and brokers out there, or those who just aren't doing their jobs correctly.

There's a distinct difference between fraud and negligence, though both are cause for a lawsuit. The more malicious of the two may be fraud. Investment fraud involves deception, which is when the advisor knowingly sells you a bad product or presents you with false and misleading information. This, of course, could be because advisors and brokers have personal incentives to sell you certain products.

Negligence means that the advisor simply wasn't doing his/her job. There are certain things advisors must do for their clients, with perhaps the most important one of those things being listening to the client. By truly understanding the client's goals, knowing who the client is, the advisor should stick with that information when making recommendations. If you are looking for moderate growth, and they select high-risk products instead, they clearly didn't listen.

An advisor may also be found negligent if he/she didn't diversify enough. Diversifying your portfolio is imperative, and if your investment advisor failed to do that and the overconcentration resulted in major losses, your advisor was negligent in his/her duty to you.

If you suspect you were the victim of a fraudulent or negligent investment advisor, an investment fraud attorney can analyze the evidence to determine whether you have a case.

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