Chicago Failure to Diversify Lawyer

Did Your Stockbroker Put All Your Eggs in One Basket?

Different segments of the market get “hot” at different times, and there are always new products and packages. You should not be tempted to invest too heavily in one category or any particular security — and your brokerage firm or financial advisor should certainly know better.

Did you suffer significant investment losses because your investment firm channeled your assets too narrowly? I am an experienced securities lawyer who worked for two decades for the Illinois Securities Division and the Financial Industry Regulatory Agency (FINRA). I have helped clients obtain compensation from investment firms for over-concentration or failure to diversify.

Located in Chicago, I represent investors in securities arbitration, mediation and litigation in northeast Illinois and northwest Indiana, and throughout the United States. Contact my office to schedule a free initial consultation.

Illinois Investment Over-Concentration Attorney Handling Claims Nationwide

My law practice, John C. Barlow, Esq., Attorney at Law, focuses on plaintiff representation in stockbroker misconduct and securities fraud. My background as an enforcement attorney for the Illinois Secretary of State and a staff attorney and Associate Vice President and Regional Director at FINRA Dispute Resolution Inc. (formerly the NASD) enables me to identify inappropriate asset allocation and over-concentrated investments.

  • Failure to diversify refers to the overall investment strategy. A competent and scrupulous brokerage will recommend a mix of investments across many categories of products and securities: stocks and bonds, cash and commodities, domestic and international, etc. The balance of conservative and higher risk securities should align with the client’s goals, finances and risk tolerance. Failure to diversify can be considered negligence.
  • Over-concentration is a deliberately heavy investment in one company, one industry or one type of security. This high-risk strategy is not appropriate for most investors, and often the brokerage (or rogue broker) is motivated by the bigger commissions from risky securities. Having “all your eggs in one basket” can result in heavy losses in a short time.

Brokerage firms have a strong fiduciary duty to each client’s best interests. This includes a legal obligation to monitor client accounts and rein in “cowboy” stockbrokers who take unwarranted and unauthorized risks with other peoples’ money.

Contact Chicago Failure to Diversify Attorney John Barlow

To schedule a free initial consultation, contact me online or call me at (312)214-3365. I take most securities claims on a contingent fee basis, charging attorney fees only if I recover compensation for your losses.