Claims Examples
Brokerage Services Liability
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A bank employee provides investment advice to an elderly customer who allows him to purchase securities on her behalf. When the securities do not perform well, family members sue the investment advisor and the bank for negligence in rendering investment advisory services. |
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A bank works with a securities firm to provide brokerage services to its customers through a dual-employee arrangement. The bank relies upon the securities firm to supervise the activities of the broker. The broker changes the mailing addresses on several accounts to a post office box, embezzles funds from these accounts and then mails false statements to the customers to hide the missing funds. Upon discovery of the fraudulent activity, the defrauded customers sue the bank for negligent supervision. |