Securities fraud occurs in many different scenarios. From simple misrepresentation to Ponzi schemes, our lawyers are prepared to investigate your claims and seek to recover your damages against the appropriate parties. Our former wall street lawyers have handled cases involving many types of investment scams and are experienced in helping investors recover their money against the wrongdoers.
If you or your loved one has lost money in an investment, do not blame yourself. In many cases, investors are victimized by the fraudulent or incompetent actions of the very people with whom they placed their investments and their trust.
If you have lost money in an investment due to the negligence or fraud of your broker or investment professional, it is critical to speak with an experienced, knowledgeable legal counsel. Former wall street attorney Melanie S. Cherdack has that experience. She is a former in-house attorney for a large broker dealer. She leads a team of securities fraud lawyers who represent investors across the United States, Latin America, and the Caribbean.
Some of the more common types of securities violations include:
- Overconcentration: This occurs when too much of one investment or type of investment is purchased in an account. When there is a failure to diversify a customer among different investments, an investor is unnecessarily exposed to risk should something happen to that investment or particular sector. Recently, we have seen this occur with bonds, illiquid investments, structured products or fixed income securities.
- Product Failures: Many complex structured products, notes, investment funds, mutual funds, REITS, and derivative investments such as CDOs and CMOs were created by Wall Street bankers and sold to investors who do not understand the risks. In many cases, the risks of such products are not sufficiently disclosed or the products themselves are improperly marketed. Sometimes a product “blows up” and the investors were not warned.
- Unsuitability: Brokers must recommend investments that are appropriate for the customer’s investment objectives. A common example of this is when a retiree who needs income and safety is put into investments that unnecessarily expose the retiree to the risk of market forces.
- Ponzi schemes: Everyone now knows the name Bernard Madoff and his well publicized Ponzi scheme which used new investor money to pay earlier investors. Ponzi schemes still happen frequently but without as much publicity. Our attorneys have experience in recovering money stolen by ruthless promoters promising big or guaranteed returns in Ponzi schemes.
- Misrepresentation: Misrepresentation may occur when a false statement is made or when a material fact is omitted in the sale of an investment. A broker must ensure that the client understands what is being sold and the risks associated with that sale.
- Churning:Churning occurs when a broker engages in a large number of transactions in order to raise his or her commission fees to the detriment of the investor.
- Risky Investment Strategies: The use of options, futures or commodities have inherent risks and require special licensing, expertise and experience on the part of the broker and a sufficiently sophisticated investor. Similarly, the use of excessive margin or leverage as an investment strategy also involves significant risk and may not be appropriate for the average investor. Subjecting an investor to such risky strategies may be the result of inappropriate conduct by the broker.
Our investor fraud law firm will look closely at the circumstances behind your losses and work tirelessly to maximize your recovery. Melanie S. Cherdack and her team have substantial experience representing investors in arbitration and litigation. When you hire our firm, you will have an experienced attorney — not a paralegal or other staff member — evaluating your claim and working directly on your case. We pride ourselves in communicating with our clients and making sure you understand your rights and the
progress of your claim every step of the way.
Contact Melanie S. Cherdack
Our Miami, Florida, securities fraud attorneys offer a free consultation to discuss your losses. Call 305-349-2336, toll free at 888-768-2499 or complete our contact form to schedule your free initial consultation.