Securities Fraud

Securities fraud is a practice that induces an investor to make a purchase or sale decision on the basis of false or misleading information. Such practices are violations of federal securities laws.  Securities fraud, also commonly known as investment fraud, stockbroker fraud, and stock fraud, frequently result in huge monetary losses. In general, securities fraud comprises of deceptive practices in the stock and commodity markets and happens when investors are enticed to part with their investment money based on false statements.

Generally, the main component in securities fraud is deception, usually in stock market transactions. Companies may engage in stating false information on financial statements, insider dealing, outright stealing, and many other scams or investment tricks.  To learn more about the types of claims that may be brought against stockbrokers, click on the links below:

Types of Claims Against Brokers

Some Tips to Safeguard Yourself Against Securities Fraud:

One of the most important things you can do in life is protect your financial security.  A good step in the right direction is to know a few basic fundamentals about investing and create a financial investment plan. It is important to educate yourself about your investments no matter how much money you have. There is no assurance that you will make money in the stock market, but you should have an idea of your risk tolerance and always make sure your stockbroker is respecting it.  Losing exorbitant amounts of money in investments isn’t necessarily “just how it is.”

Secondly, avoid unregulated investments like private placements and hedge funds as these investments are high-risk investments suitable only for the experienced and sophisticated investors capable and prepared to bear the high risks and possible losses. Additionally, avoid complex financial investments because the more complex an investment is, the higher the risk and the easier it is to deceive. If you don’t fully understand how an investment works, don’t invest in it.

Lastly, if you suspect that you have lost money through brokerage fraud, misconduct, or mismanagement, please contact Forman Law Firm today for a confidential Free Case Evaluation. Call us at (866) 597-2221, email info@formanlawfirm.com, or fill out and submit our online “Contact Us” form.