Legal Question in Investment Law in Massachusetts

Investment Loss

I met with My financial advisor about 6 months ago He was suppose to swap my investment into another account per his suggestion.He said the economy wasn't going to do well this up and comming year so he suggested an account that would protect my investment.It was not an aggressive one.With this particular account he said if you lose money over time ..At the time of withdrawal you will get back the origional amount invested . I told him great, Yes make the change into this account. I just found out he never did and now I have lost a considerable amount of money. Is he or his firm responsible for my loss. He said he got behind in paperwork. I believe he forgot to make the transaction. He doesn't believe he is to be held accountable for my loss. I do. who is right? What can I do.


Asked on 3/08/08, 3:18 pm

2 Answers from Attorneys
Edward Wiest Edward R. Wiest, PC

Re: Investment Loss

As a general matter, failure to execute a transaction "ordered" by a customer permits the customer to recover damages from a financial services firm and its representatives sufficient to put the customer in the position he or she would have been in had the transaction been completed properly. The amount of damages available and the forum in which relief may be sought, of course, depends on the details of the transaction.

Please call me directly if you wish to discuss this problem in more detail.

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Answered on 3/08/08, 8:31 pm
Mark Tepper Mark A. Tepper P.A.

Re: Investment Loss

Failure to execute a customer order is a violation and the advisor may be liable. In my opinion, falling behind in paperwork is not a good excuse. Please call me to discuss.

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Answered on 3/10/08, 2:53 pm


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