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Churning | Excessive Trading | Securities Investment Fraud

Churning occurs when a financial advisor buys and sells investments, such as stocks, in your account for the sole purpose of generating excessive commissions. The act of churning is a breach of the advisor’s duty to recommend suitable investments and investment strategies and is considered to be a form of securities fraud. If you did not intend for your account to be actively traded, but have discovered that there is a high volume of buying and selling in the account, you may be a victim of churning.

A variation of churning, referred to as “twisting,” also occurs in annuity sales. Twisting involves the buying and selling (or surrendering) of annuities in order to generate commissions. Because of the large surrender charges that often apply to annuities, twisting can be very detrimental to an investor’s portfolio.

If you feel that your financial advisor may have churned your account, please feel free to contact us to learn about your rights.

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