Securities fraud is a complicated business. This crime is sometimes referred to as investment fraud or stock fraud. In a nutshell, when someone tries to trick an unsuspecting investor into buying or selling stock using fake information. The result is often that the investor loses a lot of money. This is not just wrong but it is against the law. There are a lot of cases of securities fraud in the United States. There were at least 1,639 cases of securities and commodities fraud that were pending in 2014, according to securities fraud attorneys.
The most famous cases in recent memory was of Bernie Madoff. He is said to have been running the largest Ponzi scheme in history. Prior to that he was seen as running one of the most successful investment firms around. He was even chairman of the NASDAQ stock exchange. By the time he was arrested in 2008, he had cost his victim’s almost $20 billion. He is now serving a prison sentence of 150 years. While your case may not be as large as that, it can be a good idea to talk to a securities fraud attorney if you have been swindled out of any money.
A security fraud attorney can help if you have been the victim of fraud but you need the right kind of securities lawyer. For most cases of stock fraud, investors who have been defrauded seek out a securities fraud attorney to manage the resulting arbitration and litigation. The kinds of conflicts that are handled by securities fraud law firms include problems involving shareholders, banks, cases of straight out investment fraud and inter-business conflicts. Because there are different areas where they can work, it is important to get a lawyer with experience in your kind of case
You are not alone and neither was Madoff or his victims. It has been estimated that every year, investors lose billions to stock fraud. There are a few ways a securities lawyer can help you.
- A securities fraud attorney can help keep you from being the victim of fraud. When you have a financial advisor attorney by your side when you made business and investing decisions, they can help you about investments that are fraudulent. A stockbroker fraud lawyer will know what red flags to look for when it comes to investments that may look too good to be true. They may be better able to recognize the signs of potential fraud.
- Securities fraud attorneys can help look into investment companies. If you are looking to work with a new investment firm or are new to investing entirely, a good securities fraud lawyer can be very helpful in doing the proper research and investigation into investment firms so that you can avoid unscrupulous stock brokers who are just looking to defraud investors. Securities fraud attorneys have access to Financial Industry Regulatory Authority (FINRA) records and are able to look into the history of the investment firm you are thinking of investing with.
- The right securities attorney will help you navigate the waters of the arbitration and litigation process. For the most part, the FINRA will be the agency to oversee any arbitration dealing with securities issues. You can also look into alternative dispute resolution. If it is at all possible, you should try to make mediation or arbitration work for you. These methods of resolving disputes is often quicker and yields better results for all of the parties. If you can skip a trip to the courtroom, you should.
- If you need to go to court, you need a good securities fraud attorney. Your lawyer can help you determine what the right course of action is and represent you in court, if you end up there.
- They can help if you have been accused of securities fraud. If you have been accused of defrauding another person, you will also need the help of a good securities fraud lawyer. Now every bad investment is a case of fraud but not everyone wants to accept that fact.
If you are looking to make some new investments, it is better to enlist the help of a securities fraud attorney before you jump in.