Churning
Churning takes place when a broker or investment adviser engages in excessive buying and selling (trading) of securities in a customer’s account without considering the customer’s investment goals and primarily to generate commissions that benefit the broker. Unfortunately, brokers who engage in churning frequently come up with professional-sounding reasons for why their “trading strategy” is in an investor’s best interests. This can make it hard for an investor to identify that they have become the victim of churning until they have incurred substantial losses.
If you think you may have been a victim of churning, contact the securities fraud attorneys at Rosenberger + Kawabata.