Stock broker Scott Brooks of San Clemente, California has been sued by a customer who alleges “negligence, misrepresentation, breach of contract, breach of fiduciary duty.” Brooks was previously involved in a customer dispute that resulted in a damage award of $523,300. Mr. Brooks has been registered with Newbridge Securities Corporation since 2007.
Negligence
Stockbrokers have a duty to recommend suitable investments and investment strategies to their clients. A recommendation is only suitable if it comports with the client’s investment objectives, risk tolerance, investment experience, investment time horizon, liquidity needs, and income needs. Together these considerations form the investor’s unique “investment profile.” The duty to recommend suitable investments cannot be disclaimed through risk disclosures or waivers.
Breach of Fiduciary Duty
Fiduciaries owe their clients duties of honesty, loyalty, care, and disclosure, and must act in the best interest of their clients. A breach of fiduciary duty occurs when the fiduciary violates the trust and confidence reposed by the client.
Misrepresentations and Omissions
There are a multitude of state and federal statutes that make it unlawful to mislead and defraud investors in connection with the purchase or sale of securities. The best known of these laws is Section 10(b) of the Securities Exchange Act of 1934, which is a federal statute. Each of the 50 States has its own set of securities laws, known as “blue sky” laws. Many States have modeled their blue sky laws on the Uniform Securities Act, which contains a variety of different civil liability provisions relating to misrepresentations and omissions.
Need Assistance?
If you have suffered investment losses as a result of the malpractice or misconduct of Scott Brooks, our experienced team of securities attorneys may be able to assist you in recovering some or all of your losses. Call us toll-free at 888-607-4819 for a free consultation or email us through our “Contact” page to schedule a free consultation.
