For investors, being a victim of securities fraud is a highly disastrous situation, as it results in a huge loss of money and erosion of faith in the financial structure. When one becomes a victim to the fraud, he is required to navigate through a complex legal system in order to recuperate his funds; this requires being represented by lawyers who specialize in this area.
Securities Fraud Attorney from Erez Law, PLLC who has a broad specialization in securities litigations in general, assists investors who have sustained losses due to U.S. securities law violations.
Securities Fraud
Misrepresentation, deception, and manipulation of the stock market with the intention to mislead the investor into making a financial decision is termed securities fraud. Misrepresentation of facts, insider trading, Pump and Dump, and Ponzi schemes are a few examples of securities fraud. Professional brokers or brokerage firms, or advisors that are meant to protect the interests of the client, undertake fraudulent activities in some scenarios.
Securities fraud signs include loss of money after no changes were made, trades that were not authorized, high-risk investments that were not intended for the user, information that was meant to be kept confidential, and dealing with fraudulent brokers who guarantee profits and dishonest activities.
Legal Representation
Attempting to recover losses from securities fraud can involve a complicated legal and regulatory system, for which one may need a legal representative. Securities are a mixture of laws and rules that are enforced by different institutions, including the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
An experienced securities lawyer can assist clients with investigating claims, delving into communications and agreements, and locating breaches of fiduciary duty. They can ascertain whether its recommendations were contrary to the interests of its clients, whether the clients were told lies material to the matter in hand, or whether the business had performed less than it should have done.
FINRA
FINRA arbitration is the most common method for resolving problems between investors and brokers, as it enables investors to argue their case in front of impartial arbitrators. The arbitration proceedings are more economical in terms of costs. Nevertheless, one must be ready and have the appropriate level of understanding pertaining to securities laws.
During arbitration, investors are obligated to show proof of any misconduct by the broker or negligence from the brokerage company. Such proof may include demonstrating that the investments made were unsuitable for an individual’s objectives or that the broker disregarded significant risks.
Avoiding Securities Fraud
While there are ways to sue for fraud and seek damages, the ideal is to prevent securities fraud at all costs. Protect yourself by:
- Checking Out Brokers And Firms: Check the credentials of brokers and firms with the help of FINRA’s BrokerCheck.
- Understanding Investments: Never invest in products or schemes you do not fully comprehend. Be wary about high-pressure sales or guarantees of returns.
- Account Statements: Check your investment account statements regularly and report discrepancies or any transactions that you do not recognize.
- Seeking Answers: Any professional talking about investments should clearly articulate and explain any concerns around investment approaches and investment risks associated with an approach taken.
Moving Forward
If there is fraudulent activity, urgent action is necessary. Erez Law, PLLC helps investors who already took losses due to broker fraud or manager misconduct. They are experienced in the area of law, especially in such law as taking border-crossing or cross-national financial arbitration cases.
The law firm has the needed experience and ethics to assist the investor in the pursuit of justice and recovering investment losses. If you are a victim of any form of security fraud, contact Erez Law and request a completely free and confidential legal case review.
