Legal Question in Securities Law in Florida

Investment house liability

When an investment firm lets a

broker go do to inappropriate

investing or unscrupulous practices

and does not inform the client of the

bad broker, and the client

unknowingly follows the broker and

sustains huge losses. What is the

liability of the firm for not notifying

the client?


Asked on 9/09/08, 11:58 am

2 Answers from Attorneys
Warren Markowitz Warren R. Markowitz, Esq

Re: Investment house liability

A firm has no affirmative obligation to notify clients of the reason a broker left its employ or association. On the other hand, if you sustained losses at the new firm and the old firm due to the actions of the broker, you can potentially pursue a claim against both and the broker for the actions that caused the loss.

You should contact an attorney to discuss your rights and how to pursue them.

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Answered on 11/12/08, 6:08 pm
Mark Tepper Mark A. Tepper P.A.

Re: Investment house liability

I believe that the firm may be liable for its failure to disclose material information. Contact us directly if you want to discuss this matter further and possibly pursue a claim for damages.

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Answered on 9/11/08, 3:17 pm


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