Reverse Churning
- Financial Advisor Negligence
- Breach of Fiduciary Duty
- Misrepresentations and Omissions
- Investment Fraud
- Unsuitability / Unsuitable Investments
- Churning/Excessive Stock Trading
- Reverse Churning
- Unauthorized Trading
- Over Concentration Investment
- Failure to Supervise
- Variable Annuity Fraud
- Private Placement
- What is a Real Estate Investment Trust (REIT)
- Ponzi Schemes
- Elder Abuse
Reverse Churning
Reverse churning occurs when a financial advisor places a client’s money into a fee-based advisory account to rake in management fees and then performs little or no actual management from that point forward. Over the past decade many financial advisors have moved from commission based compensation to fee-based advisory accounts. If the financial advisor offered little, or no, on-going advice related to the account, the client may have a viable claim for reverse churning.