Massachusetts Securities Fraud Attorney

Securities fraud encompasses a wide variety of efforts to intentionally mislead investors. While no two scams are exactly alike, a Massachusetts securities fraud attorney can help connect the dots between how you were misled and the financial consequences that followed. By putting together a strong case, you may be able to recover a percentage of your stolen or defrauded funds with a securities fraud claim.

Many people do not realize the full scope of options available to them after they have been scammed or defrauded. If you need help understanding any element of securities law as well as putting the pieces in place for a successful claim, contact Wolper Law Firm today. Our attorneys have a 99% success rate in representing our clients and recovering stolen funds.

How Our Massachusetts Securities Fraud Attorneys Can Help Defrauded Investors

At Wolper Law Firm, our focus is on helping you recover and rebuild after a significant financial loss. Securities fraud takes its toll on your finances, your family, and your sense of trust. You might have lost your savings or a sizable sum, be hesitant to continue investing, or feel like you were taken advantage of by someone you put your faith into. Our attorneys can help you pursue the best path forward, advocate for you to recover the maximum amount of funds, as well as advise you about any additional accounts that may be at risk from the scam. Furthermore, we can help you reclaim your sense of agency and control over your own finances by holding a bad agent accountable for the harm they’ve done.

Our Massachusetts securities fraud attorneys may be able to bring a successful securities fraud claim through:

• Federal court judgment: We can present your securities fraud lawsuit before a federal judge versed in financial fraud law. A successful judgment often results in high damages against the defendant as well as enforceable legal action for recovery. Not every case is eligible for federal action, but when applicable, this path can bring the most significant source of relief for victims.
• Class action lawsuits: By joining a class action lawsuit, groups of investors who have been defrauded can share legal costs as well as the recovery amount. This is an option for customers, affinity groups, and members who have been victimized by a broker-dealer, advisor, or company that they have in common.
• FINRA arbitration claim: Outside of the courtroom, a FINRA arbitration claim is a popular avenue after an investment scam. FINRA arbitration is more streamlined than a securities fraud lawsuit, making it an appealing option for investors. However, FINRA board decisions are binding and do not involve the option for an appeal. For this reason, among others, it is especially important to work with a qualified securities fraud lawyer from the start on your claim. Mistakes in FINRA arbitration can cost you any chance of recovery.

Understanding the Massachusetts Securities Law

Massachusetts securities are regulated by both state and federal laws. The SEC investigates violations of federal statutes and regulations such as the Dodd-Frank Act and the Securities Act of 1933. Meanwhile, the Massachusetts Securities Division enforces the Massachusetts Uniform Securities Act as well as other Massachusetts securities regulations​.

The Massachusetts Uniform Securities Act prohibits any device, scheme, or artifice to defraud investors. Like its federal component, it also governs material omissions or misrepresentations about securities. Additionally, under Chapter 110A Section 201, broker-dealers must register with the Massachusetts Securities Division in order to lawfully sell securities.

The Massachusetts Securities Division offers information and assistance to investors looking to research the legitimacy of financial opportunities. In addition, through its RICE section (Registration, Inspections, Compliance and Examination), the securities division performs inspections of financial professionals for compliance with state and federal regulations.

What Are the Elements of a Securities Fraud Claim in Massachusetts?

Like in other areas of law, a successful securities fraud claim must connect the dots in order to prove liability. It is not enough to show that you have lost money from an investment. The market’s volatility is an understood risk of any investment. Instead, securities fraud elements include all of the following:

• Misrepresentation: Most securities fraud claims rely upon misrepresentation, false statements, or omissions. Perhaps you were convinced to purchase a new life insurance policy that you do not qualify for, or you were told to send large sums in order to cover “advance fees” or upfront costs for a timeshare that does not exist. You might have been promised an investment couldn’t lose or that there was only a limited time window to buy. Any of these may be misrepresentations about the actual facts of the opportunity.
• Materiality: Misrepresentations must be material in order to qualify for a securities fraud claim. Materiality can be understood as a detail that is relevant and important enough to change your mind. Examples might include hidden fees, high interest rates, past history of fraud, or other concealed or misstated details.
• Scienter: In securities fraud law, scienter is intent to defraud, mislead, or manipulate an investor. Under SEC Rule 10b-5, broker-dealers who lose clients’ money must have acted with scienter, or knowing, in order to be held accountable for the loss.
• Reliance: An investor must have relied upon information provided by their financial advisor or broker-dealer in order to bring a claim in federal court.
• Damages: The loss that the investor suffered must be directly linked to the misinformation or material omission provided to you by the dealer. This connection is necessary in order to bring a claim for damages.

Your securities fraud attorney will work to connect the dots on all of these elements in order to bring a successful securities fraud claim. You must be able to illustrate causation between all of these elements in order to hold a broker-dealer liable for the harm done in a securities fraud lawsuit.

Alternatively, in a FINRA arbitration claim, you may be able to prove that your broker-dealer breached their suitability duty to you as a client. FINRA hearings have a lower standard of proof than in federal court, but they can bring relief to some harmed investors. In a FINRA claim, you will need to show that a registered financial professional violated FINRA Rule 2111 by failing to perform an analysis of an investment’s suitability before recommending it to you as their client. The three-pronged test for suitability is:

1. The representative must have a reasonable basis to believe the recommendation is suitable for at least some investors, i.e., that it exists and is not in itself fraudulent.
2. The representative must have a reasonable basis to believe that the recommendation is suitable for that customer based on the customer’s own investment profile, i.e. that it is in their interests given their age, goals, investment experience, and more.
3. A representative who has the power to make trades from their client’s account must determine that the trade is not excessive in light of the client’s profile, i.e. that the amount is adequate and in line with their investment abilities and goals.

Common Securities Fraud Claims in Massachusetts

There are many different types of securities frauds, and they can affect anyone in Massachusetts. First-time home buyers, growing families, retirees, small business owners, veterans, and immigrant groups are some of those commonly targeted by bad broker-dealers. Some of the most common frauds include:

• Affinity fraud schemes: Church groups, temples, mosques, team sports, AA, veteran’s groups, and neighborhood associations can all be victimized by financial scams. Affinity fraud preys upon shared connections in order to access new victims, who are more likely to trust other members of the group or those in leadership roles. Whenever you receive a recommendation for an investment, be sure to check its legitimacy by doing your own research or seeking out professional advice before sending money.
• Ponzi and pyramid schemes: These scams involve paying out investors solely from new buy-ins, as well as pressuring new members to join. Ponzi schemes may appear profitable for a time by paying dividends from their own pool of money instead of by generating any actual returns. Once the scam runs out of money or new targets, it collapses in on itself.
• Churning: Churning is making excessive trades in your account in order to generate fees or commissions for your broker.
• Selling unregistered securities: Securities in Massachusetts must be registered with the Massachusetts Securities Division. The sale of unregistered securities or from unregistered brokers is a crime.
• Market manipulation: Late-day trading, bid rigging, advancing the bid, pump and dump schemes, insider trading, wash trades, spoofing, layering, and more are all examples of attempts to manipulate the price of a security. Any efforts to mislead investors or to create a false impression of supply and demand may be considered market manipulation.

Contact Our Massachusetts Securities Fraud Attorneys Today for a Free Consultation

At Wolper Law Firm, our proven track record in handling securities fraud cases stems from our legal acumen, conscientious attention to detail, commitment to our clients, and years of experience in the field. If you need help with a securities fraud claim in Massachusetts, contact Wolper Law Firm today and find out how we may be able to help.