how to recover losses from investment fraud

How to Recover Losses from Investment Fraud?

Dec 9, 2019

Investment fraud can be hard to detect, and once detected can reveal significant financial losses to you. That is what makes investment fraud so insidious. The wrongdoing is not always obvious, and the results can be substantial. Indeed, investment fraud can come in various forms that are not always easy to recognize when you are a victim.  While there is outright fraud such as non-existent investments or strategies, fake investments, and Ponzi schemes, there are also things that look like legitimate investments that are also types of investment fraud. Those include: Misrepresentations or Omissions. Fraud may occur when an investment client is not fully and fairly informed about the major aspects of an investment strategy or a particular investment. Churning. It can be fraud for a financial advisor to engage in transactions, trades, or other account activity simply to generate more commissions. Unauthorized Trades. An advisor may be guilty of fraud if he or she uses discretion without a client’s permission in order to engage in trades that are not approved by the client. Inappropriate Investments. A finding of fraud is possible when an advisor suggests or agrees to an investment strategy that is not proper based on the client’s age, financial situation, or risk tolerance.   Once you learn that you are a victim of fraud, however, the next question is whether you are able to recover those losses based on the fraud.   In this article, we will discuss one way in which you can recover some of those losses that are the result of investment fraud. Of course, if you have additional questions about your own circumstances after reading this article, we welcome you to contact us today on our online contact form, or by calling 1-888-768-2499. We are the investment fraud lawyers who can help you.    FINRA Arbitration As a general rule, if you are a customer of a FINRA member brokerage firm (most well-known firms are FINRA members) you are required to arbitrate your claim before the Financial Industry Regulatory Authority, or FINRA.  What is FINRA?  FINRA is a self-regulatory organization that regulates broker-dealers in the United States. The mission of FINRA is to: Provide investors with basic protections;  Ensure that securities sellers are tested, qualified, and licensed;  See that securities advertisements are truthful and not misleading; and  Make sure that securities products sold to an investor are suitable for that investor.   Who is Eligible for a FINRA Arbitration? With regard to FINRA arbitration, FINRA provides a forum to arbitrate matters at a relatively low cost for customers of member brokerage firms who have been wronged. To be eligible for a FINRA arbitration, the case must involve an investor and an individual or entity registered with FINRA, and the occurrence or event giving rise to the claim must have happened within the last six years. This occurrence or event does not mean the date of purchase but may be actions such as actively concealing the fraud, continued misrepresentations or continued purchases, or misstatements of value on monthly statements within the past six years. An investor must arbitrate at FINRA if there is a written agreement between investor […]

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