Ohio Securities Fraud Attorney

Investors trust their financial advisors to give them accurate and reliable information. The relationship an investor has with their broker-dealer is one of the most trusting relationships an individual will form. When an investor experiences a major financial loss, it can be hard to know whether they are the victim of natural market fluctuations or broker misconduct.

If you suspect you have been the victim of investment fraud, contact Wolper Law Firm. Our Ohio securities fraud attorneys can investigate your case and determine whether you may be entitled to recovery of your losses.

Understanding Securities Fraud

Many people have an investment portfolio, even if they are not actively involved in its oversight. A 401(k) account, for instance, is an investment portfolio that takes money you earn now and invests it into various securities (like stocks, bonds, options, etc.) These investments may be present by the brokerage that handles your employer’s 401k program, or you may adjust the investments on your own.

Securities fraud occurs when a financial advisor (like a broker or broker-dealer) gives a person false or misleading information that causes them to make a financial decision that results in a loss. Accompanying the investor’s loss is a gain or benefit for the financial advisor.

Investors may have little or no knowledge of securities, how they work, and the laws that govern investments and their procurement. Fraudulent advisors prey on this lack of knowledge and explicit trust in an attempt to line their own pockets.

An Overview of Ohio Securities Laws

As an investor in Ohio, you are protected by laws at both the state and federal levels. Several agencies are responsible for investigating fraudulent securities activities.

• Division of Securities. The Ohio Securities Act makes securities fraud illegal in the state of Ohio. The Ohio Division of Securities protects investors and consumers by enforcing these laws.
• FINRA. The Financial Industry Regulation Authority is a self-regulating authority that oversees broker-dealers. FINRA handles arbitration between investors and brokers and helps enforce securities laws.
• SEC. The Securities and Exchange Commission (SEC) is a federal agency that regulates the securities industry, enforces securities laws, and protects investors nationwide.

Securities fraud is illegal at the state and federal levels, and an experienced securities fraud attorney can help you understand your options for seeking restitution and holding those responsible accountable. It is not uncommon to not know if you’ve been defrauded. Some examples of securities fraud help understand the full scope of fraudulent activity.

Examples of Securities Fraud Cases in Ohio

Ohio investors should be aware of the broad scope of investment fraud scenarios that exist, and understand how to avoid them.

In December of 2024, a Huron man was charged with 23 counts of investment fraud when his company, Coast to Coast Chill, Inc. misappropriated investor funds to pay other investors and the the company owner. The owner, Garry Savage, Sr., was also charged with omitting material facts from investors concerning investing their funds in a company that would build a facility to produce self-chilling beverage cans.

In another case of investment fraud in October 2024, two men were sentenced for attempted securities fraud by manipulating their company’s stock between 2016 and 2019. According to court documents, the men used call rooms, shell companies, and unlicensed “stock brokers” to pump up the price of their stock while simultaneously manipulating unsuspecting investors to purchase it at a “steep discount.”

Not all securities fraud involves the investment of money in the stock market. Security instruments like promissory notes may also be manipulated. In September of 2024, Ohio resident Tom Mitchell Manning was charged with the issuance of fraudulent promissory notes worth over $640,000. In addition, the notes were never correctly registered with the Division of Sales in Ohio.

Tips for Protecting Yourself From Securities Fraud

The best way to avoid being defrauded is to only work with licensed, reputable broker-dealers. FINRA’s Ask and Check process is an effective method for avoiding potential fraud and outlines steps to take to verify the background details of investments and investment professionals.

Here are a few general tips to keep in mind when it comes to avoiding securities fraud:

• Check if the seller is licensed with FINRA, the SEC, and your state securities regulator. If not, they are not qualified to sell you any type of security.
• Find out if the investment is registered with the SEC. If it isn’t, ask why.
• If an investment seems too good to be true (i.e. small investment with the promise of a fast and massive return), it is likely fraudulent.
• Investments that come with high-pressure sales pitches and seem too aggressive for you may be fraudulent or dangerous.

What to Do If You Think You’ve Been Defrauded in Ohio

Signs you may have been defrauded include unauthorized transactions, sudden drops in the value of your investment, or difficulty contacting your broker. If you think you’ve been defrauded, there are several steps to take to protect yourself and your interests.

• Collect your evidence. You’ll need copies of your bank and/or credit card statements, financial records, and all correspondence to and from your broker-dealer to present to an investigating agency.
• Report the fraud. In the State of Ohio, you can report the fraud to the Ohio Division of Securities or SEC. Reporting a suspected fraud can be done online through the Division’s website.

While reporting fraud is crucial to protecting both yourself and other investors, a state regulator rarely reimburses investors for their losses. Hiring an investment loss attorney can give you the best chance to recover your damages.

Why Do I Need an Attorney for Securities Fraud?

Investment fraud is often highly complex. If you think you’ve been defrauded, a securities fraud attorney can bring the expertise necessary to thoroughly investigate investment professionals or firms and uncover evidence of misconduct. An attorney can also help you navigate your options for recovering your losses, whether through FINRA arbitration or litigation, and guide you through the process.

No matter which avenue you choose, your attorney will act as your staunch personal advocate, ensuring your interests are protected at all times.

Speak With an Ohio Securities Fraud Attorney Today

The best time to hire an Ohio securities fraud attorney is as soon as you are concerned you may have been defrauded. Wolper Law Firm can help you identify whether you were defrauded, report the fraud to the appropriate agency, and assist you with the collection of evidence needed to file your claim. Contact us today for a free consultation.