Investment Advisor Liability

When you place your money in the hands of a financial advisor or stockbroker, you do more than sign investment documents—you put your trust, your financial security, and your family’s future in someone else’s care. State and federal laws are clear: advisors and brokers have a duty to act in their clients’ best interests, providing sound advice and avoiding conflicts that could harm investors. 

But too often, those responsibilities are ignored. Unsuitable recommendations, unauthorized trades, or negligent portfolio management can wipe out years of savings in a matter of months. The fallout is devastating: retirement plans derailed, businesses set back, college funds depleted, and families left reeling. Investors who have been misled or betrayed by their advisors are entitled to compensation—but the path to justice is rarely simple. Complex regulations, aggressive defense tactics by financial institutions, and the emotional weight of financial loss can make these cases overwhelming without skilled legal help. 

At Timothy D. McGonigle, PC, we stand with investors. For over 40 years, Timothy has represented clients across Los Angeles and California in high-stakes financial malpractice and securities fraud cases. Known as a seasoned trial lawyer, he has secured six- and seven-figure verdicts for clients harmed by the negligence or misconduct of financial professionals. Our mission is straightforward: to restore what was taken from you, hold bad actors accountable, and give you back the confidence to move forward. 

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Investment Advisor Liability Explained 

Investment advisors and stockbrokers must follow strict standards of care. They are expected to recommend investments suited to each client’s risk tolerance, financial goals, and circumstances. They must disclose material facts, avoid conflicts of interest, and obtain consent before executing trades. 

When these obligations are violated, the results can be financially devastating. Mismanagement of investments doesn’t just reduce a portfolio’s value—it undermines the very stability people worked years to build. Whether you’re a professional nearing retirement, a small business owner reinvesting profits, or a family planning for the future, you deserve accountability when negligence or misconduct causes losses. 

Common Forms of Securities Fraud and Misconduct 

We represent clients in a wide range of investment advisor liability and securities fraud claims, including: 

• Recommending unsuitable investments – High-risk products pushed on clients with conservative goals. 

• Negligence – Failing to research, monitor, or act with due care in managing portfolios. 

• Misrepresentation of an investment – Providing misleading information or omitting critical details. 

• Unauthorized trades – Buying or selling without client consent. 

• Lack of diversification – Concentrating investments in a way that increases exposure to catastrophic loss. 

• Churning – Excessive trading designed to generate commissions rather than serve the client’s interests. 

• Excessive use of margin – Leveraging accounts in ways that expose clients to unsustainable risk. 

• Selling away – Recommending investments not approved or overseen by the brokerage firm. 

Each of these practices violates the trust between advisor and investor—and in many cases, violates securities laws designed to protect consumers.  

Strategic Advocacy for Investors 

Investment advisor liability cases are complex. They require not only an understanding of securities laws and FINRA regulations, but also the ability to cut through layers of financial data, contracts, and internal firm procedures. Our firm brings both legal expertise and financial literacy to these matters. 

We investigate thoroughly, working with forensic accountants and financial experts to trace losses back to misconduct. We negotiate strategically, knowing when to push for settlement and when to escalate into litigation. And when trial is the right path, we bring four decades of courtroom experience to bear against even the largest financial institutions. 

Our track record includes substantial verdicts and settlements for clients who thought they had no chance of recovery after devastating financial losses. More importantly, we give clients back something money alone can’t buy: a sense of justice, accountability, and peace of mind. 

Protecting Your Financial Future 

If your stockbroker or financial advisor failed to uphold their duties and you suffered losses as a result, you do not have to shoulder that burden alone. With the right representation, you can recover damages, restore your financial security, and send a message that misconduct will not go unchecked. 

👉 Contact our Los Angeles office today to schedule a confidential consultation with a California investment advisor liability lawyer. We will review your portfolio, analyze the misconduct, and build a strategy to fight for the justice and compensation you deserve.