Does Your Broker Owe You Money?: If You've Lost Money in the Market and It's Your Broker's Fault--You Can Get it Back

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 readersyin page after high content pageywhat brokers do to damage their clients. Unconditional trust in your broker may not be the wisest move. The potential for fraud is rampant. Youyll 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 brokersyeven those employed by well-known and respected brokerage firms. He doesnyt 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 wasnyt written to be a fun read. Youyll probably want to do some highlighting, some page-turning, and some note-taking. As a result of using this book as an educational tool, youyll 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.


Retail Investors...IF you think you have a claim...   July 13, 2003
R. Shaff (USA)
8 out of 9 found this review helpful

...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.


Does Your Broker Owe You Money Hits Home   October 14, 2002
A. Daniel Woska (Oklahoma City, OK United States)
6 out of 6 found this review helpful

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.