Investment Fraud: How to Recover Your Lost Investment
Investment fraud is no joke, and unfortunately not as uncommon as you might think. Investment is a sure-fire way to improve one’s financial security and standing in society, but what do you do when you lose all your money due to a financial advisor or a stockbroker that just doesn’t play by the rules. You may find yourself in a financial pickle.
Dealing with investment fraud requires the expertise of investment fraud lawyers. Unlike regular investment lawyers who offer advice on the best property or asset investment strategy, these professionals specialize in fraud cases. Investment fraud lawyers take on specialized cases involving lost money due to brokerage firm misconduct. These attorneys know how to navigate the legal issues to recover your lost investment.
If you believe you have an investment fraud case, you may one want to consider finding an attorney with experience in FINRA arbitration to help you recover your lost investments. Even though you may feel hopeless, there is always a chance you may have a viable case.
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Once you get in touch with an investment fraud attorney suited to your unique case, you will go through the legal process of getting your money back from a fraudulent brokerage firm. The important thing is to take action and get educated! Here is a closer look into the process of recovering your lost investment.
Recover Your Lost Investment With an Investment Fraud Lawyer
We recommend reviewing the recovery checklist for victims of investment fraud on FINRA’s (Financial Industry Regulatory Authority) website. FINRA is a government agency that oversees U.S. broker-dealers. When filing a complaint against an advisor or stockbroker, the attorney you work with will be filling with FINRA.
However, you may not know for sure whether or not you are involved in investment fraud. Advisors may simply brush off your case by saying that markets are unpredictable, assuring you that your losses are expected. Little do you know that these advisors are in on the scheme and are covering for themselves.
Consider seeking impartial advice from a professional investment fraud lawyer. These experts can review your case and determine whether your losses warrant legal action. Should they discover something sinister in your case, they can guide you through the financial recovery process and restore your lost funds.
Types of Investment Fraud
These crooks may take advantage of people’s inexperience and steal their money. Consider the following common investment fraud types to determine whether you are engaged in a scam.
- Securities Fraud: This common scam involves stock, bond, and mutual fund fraud. The scam artists would sell fake securities that offer no protection whatsoever. Such scams are common because scammers selling worthless securities usually have convincing documents. Unsuspecting investors may fall for the scammer’s fabricated paperwork and invest significant funds only to lose them to fraudsters.
- Ponzi Scheme: This scam involves promises of high investor return rates with little risk. Ponzi schemes are like pyramid schemes because they use new investor funds to pay the operation’s earlier backers. For instance, a “company” operating under a Ponzi scheme would collect funds from an investor. They would return these funds to earlier investors. This operation would fail without new investors putting in more money, putting later investors at risk of losing more than they invested.
- Breach of Fiduciary Duty: This case occurs when someone fails to enact their responsibilities regarding their client’s interests. In other words, the brokerage firm that you have invested your money into may have been unable to act responsibly in your best interests. For instance, the firm may have misappropriated the funds you invested into a program that you did not approve.
- Unsuitable Investments: This type of fraud involves stocks or bonds that fail to meet an investor’s goals. For instance, you may require a certain level of risk for your investment. An unsuitable investment would carry a lower risk than what your case needs. Perhaps your assets may be overqualified for your investment.
- Market Manipulation Fraud: Also known as “pump and dump,” this type of fraud involves artificially inflating or deflating a security’s demand. For instance, fraudsters would rig quotes or trades, causing stock prices to rise or fall. The scammers would take advantage of unsuspecting investors by citing this artificial demand to serve their fraudulent activities.
If you suspect that you are dealing with an investment fraud scheme, consider hiring an investment fraud attorney to review your case. You may recover your lost funds quicker if you reach out to a seasoned professional as soon as possible. Plus, specific investment fraud types may take longer to resolve than others, making swift action necessary to get your money back.
When to Hire an Investment Fraud Lawyer
We recommend finding an attorney with years of experience, and someone that you feel you can rely on to help recover your lost funds. Most investment fraud lawyers work on a contingency fee basis, meaning you would only pay for successful services. This means you will only pay legal fees once you win the case and get the fair compensation you deserve. In other words, you can speak to our investment fraud attorneys about your case for free.
A deceived investor can get in touch with an investment fraud lawyer. These professionals can determine whether you are investing in an honest firm or if you have gotten mixed up with an investment fraud scheme.
With a professional investment fraud lawyer on your side, you can obtain the compensation you deserve. Your compensation would recover the funds you lost to the scheme.
If you believe you are a victim of investment fraud, you do not have to give up. There are actionable steps you can take today to help secure your investment as well as your future!
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