It has been discovered that many large brokerage firms had secret agreements with different mutual fund families. The mutual fund fraud went down like this: Business as usual where brokerage firms would advertise and promote limited mutual fund families calling them either preferred families of mutual funds or recommended families of mutual funds.

The bad news is that brokerage firms misrepresented you the investors by touting these specific mutual fund families due to better mutual fund performance and returns as the reason for promoting them. When in reality, the reason for promoting these mutual fund families was because those families paid extra incentives back to the brokerage firms.

Are you the victim of mutual fund fraud? Do you have a mutual fund lawsuit? Failure to disclose to investors specific payback arrangements of preferred mutual fund families to the exclusion of other fund families regardless of the investors’ particular need is considered mutual fund fraud. It’s an objectionable trading practice that rises to a higher level of abuse when the firm not only knows that it’s intentionally carrying out deception.

If you are the victim of mutual fund fraud, contact a mutual fund lawyer about your losses and to find out what your legal options are. We are happy to evaluate your situation as you may be eligible for a mutual fund fraud lawsuit.