If there is any one characteristic that is required to be a successful stockbroker or insurance agent, it is the gift or ability to put people at their ease and get on the inside with clients so as to gain their trust and confidence.  A common way to do this is for the broker or agent to get involved social activities associated a sporting event, church activity, charity party, or the like.  The presumption in this context is one of good fellowship and apparently close friendships can arise in which the client may truly believe that the broker or agent has become a close personal friend or ally.   Sadly, there have been countless times throughout history when this tactic has merely been a ploy to make a sale or recommendation of some dubious or unscrupulous project or investment scheme, that later spells financial disaster for the victim.   From a legal standpoint, a broker or agent who has ostensibly entered into a social friendship with an investor probably has an even higher duty of honesty and fair dealing owing to the friendship than would be the case if the client were a stranger.  Financial harm caused by dishonest or unsuitable investment advice would in this case be recoverable through appropriate legal proceedings, even if the friendship may not.

Call us at 1-800-306-6010 or contact us online.