Churning

Unethical stockbrokers sometimes increase their commissions by excessively trading their clients' accounts. Also known as overtrading, twisting, and churn and burn, churning is against the FINRA Rules of Fair Practice. Since a commission is usually paid each time a stockbroker executes a trade, commissions can erase any earnings your account might have and even turn them into a loss.

If your broker exercises control over the investment decisions in your account and engages in excessive trading in terms of the resources and type of account you have, you might have a case against your broker.

In order to prove that your investment account has been churned, a court will look at the turnover of the money in your account. If the entire assets in your account have been traded once a month, then you probably can prove that your stockbroker has churned your account. You may even have a churning claim at lower turnover levels.

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If you are facing a legal dispute related to your investments, it's in your interest to work with an experienced attorney who can provide you with the advice you need to reach a resolution that reflects your interests. The first step is to meet with a lawyer in person so you can learn more about your legal options.

To schedule an appointment with an attorney at Reasonover & Berg, LLC, call us at 504-613-4941 or contact us online. From our office in New Orleans, we serve clients throughout Louisiana and beyond.

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