In the last few years, investors have been plagued by an increasing amount of investment fraud. The carelessness and/or fraudulent practices of investment advisors and stockbrokers have cost individuals thousands of dollars in damages.
If you or someone you know has been the victim of investment fraud, it is important to seek the early help of a qualified consumer fraud attorney who can evaluate your case and inform you of your legal rights. Please contact us today to speak to an attorney FREE of charge.
Common Types of Investment Fraud Claims
There are various ways in which an investment advisor, financial planner, or stockbroker can defraud a consumer. Some common types of investment fraud claims include, but are not limited to:
- Unsuitable investment recommendations - A broker has a duty to make recommendations that are relevant to the consumer's needs, risk tolerance, and investment objectives. If a broker or investment advisor intentionally makes unsuitable decisions, they may be committing investment fraud.
- Misrepresentation or omission of facts - Occurs when a broker neglects to inform a consumer of the risks associated with their investments. Under federal and state laws, even an estimate or opinion offered by brokers may be considered fraudulent misrepresentation. Furthermore, a broker must legally tell a consumer the whole truth about a possible investment. Omitting facts is a form of investment fraud.
- "Churning" - Occurs when excessive trading (buying and selling securities) is done to obtain more commission or to benefit the broker instead of the investor. You must prove that a broker churned your account by producing evidence of excessive trading.
- Unauthorized investments - This type of investment fraud occurs when a broker makes trades with a client's funds without permission. By law, a broker must obtain the permission of the consumer for all trades.
- Over concentration of portfolio - This occurs when a broker concentrates a large portion of a client's funds into one investment or type of investment that significantly increases the risk of loss.
Filing an investment fraud claim
If you are a victim of investment fraud, you may be eligible to recover your financial losses. Don't hesitate to contact a qualified consumer fraud attorney. Under state and federal laws, all investment fraud claims are subject to a statute of limitations, which sets a deadline for the amount of time a consumer has to file a lawsuit. You may forfeit your legal rights if you fail to act in a timely manner.
In many cases of investment fraud, numerous people like you have experienced the same type of damages caused by an unscrupulous investment professional. Under these circumstances, a consumer fraud class action lawsuit can be pursued to help all the victims of a similar investment fraud action obtain compensation for their losses.
Please contact us today to learn more about investment fraud or to speak to an experienced attorney who can protect your rights and maximize your interests.