Asset Broker Accused of Neglected Fiduciary Duties

Case Overview

This is a securities fraud case where a broker, the employee of a large asset management firm in Illinois, was accused of breaching his fiduciary duty. While soliciting loans from the firm’s clients and claiming personal financial distress, the broker allegedly began to engage in increasingly risky and unauthorized trades. Many options were allowed to expire altogether, with no value whatsoever. The broker did not advise his investors of these positions or to liquidate them at a loss to retain some of their value. After disregarding his clients’ risk tolerances, it was claimed that he had violated the fiduciary duties owed to an investor by their company. Subsequently, a professional with knowledge of fiduciary duties owed by investors, anti fraud, brokers and brokerage firms was brought in to opine on any breach in the standard of care.