Customer Reviews

Does Your Broker Owe You Money?

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1 star:		(4)

 

 

The financial services industry, especially its retail brokerage arm, operates at a level of training, competency, and ethical imperative that would be unacceptable in any other profession. It is a sad fact that most retail brokers are completely ignorant of the basics of financial economics; it is as if the average doctor had never taken courses in basic anatomy, pathology, and pharmacology. At any one time, millions of clients are receiving advice that is profoundly misinformed, as well as a gross conflict of interest, and suffer accordingly.

Dan Solin has produced a valuable resource for anyone who have been damaged in this manner. It focuses largely on the arbitration process; it is the best description of its mechanics that I have seen. This book is a must for any retail brokerage customer.

Mr. Solin's book is an indispensable guide to anyone with a brokerage account. For those who suspect wrongdoing on the part of their broker, this book is a roadmap to getting their money back. For investors looking to become better informed, Mr. Solin draws back the curtain on how Wall Street works revealing hidden costs and conflicts of interest that are rarely, if ever, disclosed by brokers.

As a twenty year veteran of Wall Street and as a secutities arbitration attorney, I can say without reservation that Mr.Solin's in depth analysis of broker behavior is right on target. This book is a must read for anyone with a brokerage account as well as any attorney who is new to the complex field of securities litigation/arbitration.

Congratulations to Mr. Solin for providing a much needed guide to uncovering and preventing broker fraud.

...you should read this book. If not, Dan Solin's book, DOES YOUR BROKER OWE YOU MONEY? is an excellent primer for those wanting to understand the 'inside skinny' of the brokerage business, responsibilities of brokers, alternatives to aggreived investors and possibilities for recovery if damaged.

I've been in the litigation consulting game (as a consulting and testifying expert) for close to a decade now, primarily in securities, and can say that Solin's book is the first book I've run across bringing all the pieces together in a cogent manner. While other books are out there and new ones arriving daily, Solin's book stands out as the cream of this crop. {Solin, a plaintiff's attorney, has been in the game for 30+ years. There will be and are many who will think this is his personal soapbox to drum up more business. I fervently disagree. Solin presents a solid, fact-based picture of many of the misdeeds inflicted by unscrupulous brokers. There is very little fluff here.}

Solin walks the reader through most aspects of a relationship with a broker as well as identifying the "warning signs" within the relationship for any investor to observe. In the first chapter, "Your Broker Just Might Owe You Money," Solin describes the 'chatter' many brokers use to market themselves and pick off unsuspecting investors. He then goes on to describe areas of broker fraud and NYSE/NASD/SEC violations, which he details in later chapters.

If there is one chapter I would strongly suggest most retail investors read and reread, it is Chapter 4, "Unsuitability: What's a Good Investment Strategy for You?" By and large, most lawsuits I've consulted/testified in have allegations of unsuitable investments. Simplisticly, unsuitability can be defined as a broker's disregard for an investor's risk tolerance and investment objectives. This disregard is primarily manifested in recommendations from a broker to buy a stock considered outside the risk paramters and investment objectives. For instance, many retired individuals have an IRA or 401(K) account with a broker. In most cases, these accounts are very conservative and thus, have a risk profile of 'conservative' and investment objectives to match (i.e. 'safety of principal' and 'income' are the primary investment objectives). An unsuitability claim would arise if a broker induced/encouraged/suggested a stock considered outside these parameters, say, ones fitting the 'growth' profile or 'aggressive growth' profile. In any event, this practice, particularly during the "Bubble" was prevalent as many investors wanted to participate in the market boom and were easy prey to rougish brokers.

In later chapters, Solin describes the lawsuit process, which is actually an arbitration process. Significantly all investors, when signing their new account papers with a brokerage house, agree to binding arbitration to settle disputes as opposed to having their dispute heard state or federal court. The arbitration process is simpler, quicker (in most cases), and less formal...but don't be mistaken, it is still a lawsuit and the stress and high intensity is still omnipresent. Solin does an excellent job of describing the process beginning with contacting an attorney and ending with the arbitration panel's decision. Within these chapters, Solin describes those investors wishing to "go it alone," filing a suit without an attorney. Solin gives this a fair level of play, which I admire in an attorney however, he strongly suggests (and I stronlgy concur) that anyone seeking compensation under a securities lawsuit hire the best attorney one can find.

Finally, Solin provides an excellent glossary and bibliography, one that should be used for future reference.

After reading this book, I easily rate this book 5 stars for it's clear and concise explanation, one appealing to the leity and professionals alike. Several reviews of this book describe Solin as a "talking head" or the champion of those not wishing to take responsibility for their own actions. While there is credence in the fact that many investors, while losing their proverbial shirts, are solely responsible for their losses, there are many, many investors who have been duped and even defrauded by their brokers and brokerage houses (remember the 4/28/03 SEC settlement with the 10 large brokerage houses?). Contrary to these reviewers, I believe Solin gives fair play to those responsible for their own losses and those not responsible. In any event, in my practice, I have no interest in frivolous cases and reject cases lacking merit. Inasmuch as I didn't find Solin's book unconscionable, I don't believe it to be fodder for the attorney lobby.

A very good read.

Dan Solin has provided a very nice primer with detail to the person who is wondering if they lost money due to the market or due to their broker.When the market meltdown began in March 2000, the bad habits and unrestrained greed of unprofessional brokers became as transparent as handi-wrap. The customers who were lured into unsuitable investments due to the way in which commissions were paid is exposed for what it is in this book.
Whether trying to recover losses for mutual funds or simple stock transactions, Dan Solin hits the mark and provides plenty of illumination on an otherwise private and hard to understand business. This is a must read for anyone who is beginning to invest or trying to determine how to recover monies lost in the meltdown.

Several years ago, as a summer intern in a large financial services company, I was given the opportunity to attend an Investment Advisor (Broker) training seminar. The experience was an eye-opener. The entire class was devoted to lead generation, not sound investing techniques. Those with some prior sales experience shared with others their methods of obtaining the names of wealthy (potential) clients. Among the methods included was slipping the receptionist at the local country club a twenty dollar bill for the club registry. On and on this went, with no discussion of investing fundamentals.

For many years in the 1990's, the knowledge that many brokers were, at best, modestly informed salesmen was confined to industry insiders and experienced investors. Dan Solin aims to bring this understanding to a wider audience, having worked with those who have either been swindled, misled, or simply given very poor investing advice. From reading this book, my impression of Mr. Solin is that he has simply had enough.

The book combines three main components - 1.) An overview into the conflicts inherent in the broker-client relationship and how these conflicts often hurt the retail investor 2.) A summary of Modern Portfolio Theory and its implications for the average investor and 3.) A discussion of avenues available to investors who believe they have a claim against their broker and/or brokerage firm. The writing is very accessible and conversational, and Mr. Solin writes as if he is very eager for the reader to grasp this information.

For many, parts of this book will be a review. However, this is the first book I have seen that provides an explanation of the theoretical underpinnings behind indexing (passive investing), uses this theoretical framework to question the value of many broker offered services, and then offers the investor options if his or her accounts have been abused or improperly handled. And writing the book off as the author's attempt to generate more business is too convenient, too pat an answer. I think that his preferred outcome is to educate, partly so that he won't have to hear about retirees having their money stolen by predatory brokers.

In short, an excellent primer for individual investors.

This is just a phenomenal book for individual investors working with brokers or financial advisors. These professionals have conflicts of interest that create opportunities to act unethically and illegally toward their clients. Individual investors may be uneducated about investments and entrust their money to these professionals. This can end in tragedy for individual investors who do not know how the business of investing works.

The author makes investors aware that they can recover losses when their rights have been violated and their trust broken. Most people are not aware of this. This book covers topics such as selecting a broker, brokerage fraud, mutual funds' conflicts of interest, arbitration, and settlements. People work so hard for their money, and it is sad to see them lose it. This is a great book for individual investors.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

Most investors in the stock market lack the sophistication to really understand what their broker is doingor not doingwith their hard-earned money. If brokers are not well- trained in how to serve their clients and/or theyre more focused on lining their pockets rather than their clients pockets, investors can lose their shirtsand then some. When their world crashes around them, these troubled people go to professionals like Daniel Solin.

During this painful time, investors learn what they should have known long before. Sometimes they can recoup some of their losses, sometimes not. Understanding the playing field before suiting up means a considerably better chance at winning the game (or at least playing well). Solin teaches readersin page after high content pagewhat brokers do to damage their clients. Unconditional trust in your broker may not be the wisest move. The potential for fraud is rampant. Youll learn about churning, frontrunning, unauthorized trading, and a host of other malpractices that create risks beyond the market itself for the unwitting investor.

Solin is a trial attorney with over three decades of experience. He has recovered millions of dollars for investors who have been mistreated by brokerseven those employed by well-known and respected brokerage firms. He doesnt always win, so readers should not get the idea that Solin is some sort of guardian angel. The good, the bad, and the ugly are presented in stories and case studies, with the outcomes explained. Reading this book will help you protect yourself. An educated buyer is a wiser and safer buyer.

The book is almost a page-turner, but not quite. It wasnt written to be a fun read. Youll probably want to do some highlighting, some page-turning, and some note-taking. As a result of using this book as an educational tool, youll be better equipped to ask questions, to insist on certain information, to protect yourself just a bit better than the average guy or gal with money in the market.

A glossary, index, and solid explanations of risks and arbitration make this book a valuable resource.

This was a terrific read, especially for a "business" book. It explains in simple, interesting terms all sorts of concepts that are essential for understanding how markets work and how to manage risk. For the first time I understand that investing in the market, done properly, can mean "risk management" and steady growth for my savings, not some "get rich quick" gamble that could bankrupt my retirement.

I have very little experience as an investor, however, I always believed a reputable broker would be a good resource for investment planning.

This book was a real eye opener. It clearly explains how the interests of even the most prestigious brokerage houses are at odds with their clients' interests. It exposes the myth that the broker can give you an "edge" because of his experience, his research or his "inside" information. While I found the section dealing with recovering losses interesting, prevention is much more important to me.

The real revelation for me was how easily I could devise a low cost AND effective investment strategy without using a broker. I don't want to sue anyone. Thanks to Mr. Solin, I don't think I'll ever be in that position.

This is an extremely valuable guide to an investor's rights. Mr. Solin's book is comprehensive but easily understandable. It clearly lays out investors' rights vis a vis their brokers, and it helps investors evaluate whether their losses were the result of broker misconduct or ommissions. It is a must-read for anyone with a brokerage account.

This book is an excellent resource for the average investor. It is packed with information delivered in a fashion that is easy to understand and absorb. As pointed out in the book, people spend more time and energy planning a two-week vacation than they do selecting an investment advisor, broker, or whatever title they choose to use. This is an indispensable guide for any investor to understand what type of advisor has your best interests in mind, what types of questions to ask to find that out, and what type of portfolio is suitable for most investors. I believe any negative comments have got to be written by bad brokers who don't want people to gain any insight into unethical practices. Good job, Mr. Solin!