{"id":424,"date":"2025-07-17T17:07:25","date_gmt":"2025-07-17T17:07:25","guid":{"rendered":"https:\/\/altamarinoprod.wpenginepowered.com\/?post_type=practice-area&p=424"},"modified":"2025-08-29T18:29:57","modified_gmt":"2025-08-29T18:29:57","slug":"breach-of-fiduciary-duty","status":"publish","type":"practice-area","link":"https:\/\/www.altlawfirm.com\/es\/legal-services\/breach-of-fiduciary-duty\/","title":{"rendered":"Breach of Fiduciary Duty"},"content":{"rendered":"
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Top Question Asked<\/p>\n <\/div>\n <\/span>\n

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Is breach of fiduciary duty the same as fraud?<\/p>\n <\/div>\n

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No. Fraud requires proof of intent to deceive or mislead. Breach of fiduciary duty can occur without intent when a broker or firm fails to act in the client\u2019s best interests, violates loyalty obligations, or withholds material information needed for informed decisions.<\/p>\n <\/div>\n <\/div>\n <\/section>\n\n\n

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A fiduciary duty is a legal obligation that requires a broker or adviser to act with undivided loyalty, putting the client\u2019s interests first in every decision. <\/strong><\/p>\n

For brokers and investment advisers, that duty includes making suitable recommendations under FINRA Rule 2111, meaning advice that matches the client\u2019s objectives, risk tolerance, and needs. Whether advice is given in writing, in conversation, or through a series of actions, brokers and advisers must ensure that any recommendation is suitable and in the client\u2019s best interest under both fiduciary standards and FINRA Rule 2111. Breaches of this duty often cause substantial financial harm, and investors have the right to pursue claims in FINRA arbitration to recover those investment losses.<\/p>\n

When a broker makes a recommendation that serves their own financial interest, ignores the client\u2019s profile, or conceals conflicts of interest, they violate that fiduciary duty. At Altamirano PLLC, our fiduciary duty lawyers in New York represent investors nationwide in holding brokers, advisers, and the firms that employ them accountable for self-dealing, unsuitable recommendations, excessive or unauthorized trading, and other misconduct that breaches the duty of loyalty and care. Firms that fail to prevent such misconduct can be held liable through FINRA arbitration, the primary forum for resolving securities arbitration claims against brokers and brokerage firms.<\/p>\n <\/div>\n <\/section>\n\n\n

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David L., Milwaukee<\/div>\n <\/div>\n
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\u00abI was sold a large number of bonds that turned out to be a deeply flawed investment product. I trusted my former financial advisor because he held himself out as a fiduciary and assured me he would act in my best interest. When he recommended the bonds, he claimed they were safe because they were backed by life insurance policies.<\/p>\n

After the investment failed and proved worthless, I searched online for information and discovered Attorney Jorge Altamirano\u2019s record of success settling FINRA complaints against the brokerage firms whose representatives sold these bonds. I contacted him, and he filed a FINRA arbitration claim against the brokerage firm. He attained a settlement that exceeded my expectations. I am very grateful for the work Attorney Altamirano did on my behalf.\u00bb<\/p>\n <\/div>\n <\/div>\n <\/section>\n\n\n

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<\/span>Examples of Breach of Fiduciary Duty<\/span><\/h2>\n

Breach of fiduciary duty often occurs in combination with other forms of broker misconduct. Common patterns include:<\/p>\n