Securities Fraud: What Do Investors Need to Know?
As an investor, it’s quite probable that at some point in your career, you’ll suffer investment losses, big or small. Sadly, one of the biggest risks come from those you should be able to trust: your financial advisor and brokerage firm.
While many can be trusted, more cannot, and you’ll need to keep a careful eye on your accounts to protect yourself. Read on to learn more about securities fraud and how to recover your investment losses.
Common Types of Investment Fraud
Securities fraud encompasses a wide variety of schemes that occur within the financial industry. Both financial advisors and institutions can be held accountable when a scheme costs an investor a considerable amount of money. Some common types of investment fraud seen by the Financial Industry Regulatory Authority (FINRA) include:
- Ponzi schemes
- Insider trading
- Unsuitable recommendations
- Lack of portfolio diversification
- Unauthorized trading
- Churning (also called excessive trading)
- Failure to supervise
If you have suffered investment losses due to any of the previously mentioned types of misconduct or fraud, or another broker scheme, reach out to a securities fraud lawyer for help with your complaint.
The Investment Recovery Process
In cases of securities fraud, a liable broker or brokerage firm could face not only penalties from the U.S. Securities and Exchange Commission (SEC) but could also be ordered by FINRA to compensate the wronged investor for their losses.
You’ll need to file a FINRA arbitration complaint first. If you’re granted a hearing, both parties will plead their case, similar to how court proceedings might go. The arbitrators will then review the evidence and make a decision as to whether the broker is responsible for your losses, and if they are, how much you should be compensated.
Reach Out to a Securities Fraud Lawyer
If you have been struggling to cope with an investment loss caused by your broker’s misconduct, call a respected securities fraud lawyer at Wolper Law Firm. Call our office at 800-931-8452 or fill out the quick contact form below when you are ready to schedule a free, no-obligation consultation.