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Securities Fraud Help Center - Mutual Fund Fraud

Did You Know?

The Mutual Fund industry is a 7 trillion dollar industry

There are many ways in which brokers betray their customers through the sale of mutual fund shares and variable annuities. The desire for high commissions also can prompt unscrupulous brokers to sell what are known as Class B mutual fund shares to customers who would have qualified for the price breaks available from Class A shares. Brokers who engage in these and other violations involving mutual funds and annuities are guilty of sales abuses that may subject them to liability.

Mutual Fund Switching

Mutual funds are considered long term investments. Switching possesses some of the same qualities as churning but this scenario does not involve trading as a recurring cycle. Instead, the broker encourages the client to sell a particular group of mutual funds, bonds or possible annuities and repurchases a nearly identical instrument for them in order to generate a large commission in just one or two transactions.

There are times that switching a fund can be a sound move, since most large mutual fund companies have a family of funds, each with different investment objectives. Most fund companies allow investors to swap funds within their group without additional charges. 

How to Establish if You Were a Victim of Mutual Fund Fraud

In order to establish if you were a victim of switching a Securities Fraud attorney can draw a comparison between all mutual funds, bonds and annuities that were sold in your account versus those that were purchased. An attorney can also calculate and disclose any hidden commissions or incentives that were received by the broker of record that the client may not have even been aware of.

CONTACT A SECURITIES FRAUD ATTORNEY IN YOUR AREA

If you believe you have been the victim of fraud, or if you are in need of legal advice or services, or simply wish to speak to an attorney who has successfully handled Securities Fraud Litigation in your state, you may use this Free Online Consultation Form.

There is NO COST or obligation for this service.

 

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Last updated: December 10, 2007