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What Is Securities Fraud?

For investors, there are countless opportunities to make additional income. However, numerous risks can exist when investing your money, threatening your financial stability. Unfortunately, securities fraud exists, and it impacts countless individuals each year when brokers betray the trust investors place in them.

As litigation attorneys, we want to help you understand what options you have to protect yourself. We’ll help you identify the possibility of securities fraud, as well as explain your legal options if it happens to you. Below, you’ll learn about the following:

  • Warning signs of securities fraud
  • What to do to avoid securities fraud
  • How a lawyer can help you if you’ve been affected

If you need help with complex securities litigation, call our firm at (239) 319-4434 today.

Warning Signs of Securities Fraud

Some actions encompassing securities fraud include investment fraud, breach of fiduciary duty, disputes with financial institutions, FINRA (Financial Industry Regulatory Authority) arbitration, and more. It’s important to recognize where the process may go wrong, including looking out for the following:

  • Be aware of offers and investments that are too good to be true.
  • Stay cautious of brokers who are pressuring you extensively to invest.
  • Beware of investments that are unsolicited and ones of which you don’t have knowledge.
  • Look out for requests from brokers or sellers for personal information, including credit card info.

One important step you can take if a broker or advisor approaches you is to perform a broker check with the FINRA website. Working with a trusted broker can give you peace of mind, but if you find a broker with a history of Ponzi schemes, pyramid schemes, advanced fee schemes, or other acts of securities fraud, avoid working with that broker.

What to Do to Avoid Securities Fraud

If you intend to invest money or trust someone with your financial investments, it’s important to understand the opportunities presented to you. It’s also crucial to protect yourself from a seller or broker who is looking to take advantage of your vulnerability. Here are some things you can do to avoid securities fraud:

  • Do your research regarding investment advisors, brokers, broker-dealers, financial advisors, and insurance companies.
  • Check with regulators to determine if the person you’re working with has any past reports or a history of securities fraud.
  • Don’t believe everything a broker, advisor, or seller tells you, and make sure you’re looking at the investment on your own.
  • Get a copy of your records and request written information about the prospectus, annual report, and offerings to understand your investment options better.

Before you invest a significant amount of money, speak with a trusted advisor to determine if it’s right for you. Even if you trust your broker, sellers can be devious in their opportunities, and it makes it difficult to understand what’s best for you.

How a Lawyer Can Help You If You’ve Been Affected

If you suspect you’ve been a victim of securities fraud, make sure you report it. You can file a complaint with the Securities and Exchange Commission and speak with a lawyer to help you understand your legal options to hold the broker or seller accountable.

At Vernon Litigation Group, we are here for you during some of the most complex cases. We have a long history of representing clients in securities fraud litigation, and we’re not afraid to take on those who put profits over people.

Our Naples litigation attorneys litigate, arbitrate, and negotiate when you need us most. We have a powerful team capable of taking on the largest financial institutions and those who protect them. When your rights are at stake, we go above and beyond because we genuinely care about you.

Call our firm today at (239) 319-4434 and learn more about your rights and options moving forward.

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