North Carolina Securities Fraud Attorney

If you have been taken advantage of by a broker, financial advisor, or other securities trade gone wrong, there may be help available. Misleading claims, false accounting, impossible promises, insider trading, and other kinds of inappropriate financial practices may qualify you to take legal action with the help of a securities fraud law firm. Filing a securities fraud lawsuit or FINRA arbitration claim can help you recover your missing funds as well as ensure that others are not taken advantage of in the same way.

At Wolper Law Firm, our North Carolina securities fraud attorneys are versed in both state and federal regulations and are committed to fighting for investors’ rights. If you believe that you have been the victim of securities fraud, contact us today for a complimentary consultation.

How Does Securities Fraud Work?

Securities fraud encompasses a wide array of activities meant to mislead investors for profit. Some common securities fraud schemes include:

• Ponzi schemes and pyramid schemes
• Late day trading
• High-yield investment fraud
• Advance fee schemes
• Embezzlement
• Making unsuitable recommendations to investors
• Pump and dump schemes
• Churning
• Hedge fund fraud

While types of securities fraud vary, they often share red flags. These include brokers who use pushy sales tactics, call or email customers unsolicited, or offer too-good-to-be-true investments. Brokers might also be unavailable for questions, purposefully provide oblique information, fail to provide documentation for unregistered securities, or disappear suddenly once money has been entrusted to them.

Understanding North Carolina Securities Laws

The North Carolina Securities Act, as well as chapters 78C and 78D of the North Carolina General Statutes, governs fraud and deceit involving the sales and purchases of securities in the state. The North Carolina Securities Division keeps records of complaints made about broker-dealers, investment advisors, and commodity dealers. It also provides resources for investors to look up securities registration and history.

Securities fraud in North Carolina is punishable as a Class H felony, regardless of the amount involved in the scam. Under federal law, the penalty for conspiracy to commit securities fraud is a maximum of five years in prison and a $250,000 fine, or twice the gross gain or loss from the fraud, whichever is greater. A securities fraud lawyer can advise you about what kinds of federal and state laws most closely apply to your situation.

What Are My Options for Recovering Losses Due to Securities Fraud?

While you can file a complaint with the North Carolina Securities Division, doing so does not help you recover stolen funds. For that, you will need the help of a securities fraud attorney. Some possible avenues for recovery with your lawyer include:

• Filing a lawsuit under the North Carolina Securities Act: The North Carolina Securities Act makes it illegal for any person in connection with the sale or purchase of a security to make untrue statements, employ schemes or artifice to defraud, or omit material considerations.
• Filing a lawsuit in federal court: Under SEC Rule 10b-5, it is illegal for a financial professional to deceive their client or misrepresent material information with respect to the sale or purchase of a registered security. Rule 10b-5 also preserves the right to private action. This means that a person who has been harmed by misleading or fraudulent securities trading practices may be able to file a lawsuit in federal court to recover damages. However, they must file within two years of discovering the fraud and within five years of when the fraud took place.
• Becoming part of a class action lawsuit: When a group of investors share a common defendant, they may be able to collect damages and hold the party responsible for the fraud accountable through a class action lawsuit. Not every party in a class action lawsuit has to have been defrauded using precisely the same mechanisms or to the same extent. However, by bringing one large, shared claim against a defendant, class action plaintiffs can pool resources to stand up to a large brokerage firm, bank, or other financial institution that has been consistently taking advantage of their clients.
• Pursuing a FINRA arbitration claim: FINRA arbitration is a popular avenue for recovery as it may take less time and resources to pursue than a lawsuit. However, FINRA arbitration does not carry all the same rights as a lawsuit. The discovery process is significantly shortened, a claim will be presented in front of randomly selected industry arbitrators instead of a judge, and there is no possibility for an appeal. For this reason, it is important to work with a skilled attorney before attempting FINRA arbitration, as mistakes made due to inexperience or omission cannot be remedied after the fact.

What Does a Securities Fraud Lawyer Do?

A securities fraud lawyer can help you build the most compelling claim possible to recover some or all of your stolen funds. They can help you explore whether or not your best path forward is through filing a securities fraud lawsuit, joining an existing class action claim, or pursuing FINRA arbitration. Working with a securities fraud attorney can also help hold bad actors accountable and create a record of their misdeeds. A securities fraud lawyer will:

• Review all paperwork regarding your claim, including signed contracts, exculpatory clauses, waivers, and arbitration agreements
• Help you gather, sort, and present compelling evidence
• Ensure that your claim is filed appropriately and in the correct jurisdiction
• Spot potential other elements of financial fraud that the layperson might miss
• Represent you in court or in front of arbitrators, when applicable
• Act as a trained negotiator in support of your claim
• Fight for your maximum possible compensation

How Do I Choose the Best Securities Fraud Attorney in North Carolina?

Not every attorney can handle a securities fraud case. This is a complex area of litigation that can involve both federal and state regulations. Additionally, securities fraud involves minute attention to detail and an in-depth understanding of standard accounting practices, evolving financial industry regulation, as well as the law. A good securities fraud lawyer should have a grasp of the technical elements involved in the securities market as well as have earned professional accolades as a trained negotiator and legal advocate.

Before hiring any securities law firm, read their reviews or client testimonials. You may also want to research their qualifications or ask if they are a member of any professional organizations dedicated to securities law. Choosing the right securities fraud attorney can make a significant difference in your case. It is never a decision to be taken lightly.

Have You Been Defrauded? Talk to a North Carolina Securities Fraud Attorney Today

Wolper Law Firm has a 99% success rate pursuing investment fraud cases on behalf of our clients. Our attorneys’ attention to detail, valuable courtroom experience, as well as trained legal acumen help us aggressively prosecute the perpetrators of securities fraud schemes. We have a proven track record as legal advocates, protecting investor interests and winning back their stolen funds. For a complimentary consultation, contact us today.