investment fraud

3 Ways to Recover from Investment Fraud

Jan 20, 2020

Being the victim of investment fraud can be a catastrophic hit to you, your family, and your plans for the future. The money you have worked hard for your entire life can be taken away in an instant. Indeed, one of the best examples of how devastating the impacts of investment fraud can be is the Bernie Madoff case. Bernie Madoff perpetrated a Ponzi scheme that was based on nothing but his charm, his reputation, and the goodwill of his investment firm. As shocking as it may seem, Madoff was able to keep up a billion-dollar investment fraud Ponzi scheme for decades. The red flags were there, but the kind of power he wielded on Wall Street, allowed him to keep suspicion from the Securities and Exchange Commission (SEC) at bay. Once the Great Recession hit, however, Madoff was unable to keep up the façade. And, with surprising calmness, Madoff turned himself in, took responsibility for his massive financial crimes, and stated that he always knew the day would come when the authorities would put him in jail. Devastation from Madoff’s Actions The real tragedy, however, was not Madoff’s descent into the criminal punishment that always awaited him, but the victims left in the wake of his massive fraud. Many believe that Madoff only defrauded investors who either were too wealthy to really be hurt by Madoff’s crimes, or should have known that on some level that he was nothing but a fraudster. That, however, is far from the truth. In fact, many of Madoff’s clients were people of limited means or solidly middle-class individuals. At his sentencing, victim after victim told the court of their poverty solely because of Madoff’s crimes. There was a retired police officer who put all of his life savings into a Madoff account and was left with nothing. There was an elderly gentleman who did not know how he was going to pay for life-saving treatment for his illness without the money he invested with Madoff. And, there are thousands of other stories like that. Investor fraud lawyer Melanie Cherdack understands the plight of those who are victims of investment fraud. She has “seen it all” when it comes to the schemes that investment brokers use to defraud their clients. So, if after reading this article you want to learn more about whether you need an investment fraud lawyer for your current situation, then we invite you to contact us today on our online contact form, or by calling 888-768-2499. We are the investment fraud lawyers who will be leveling the playing field for you. Now, let us get to the 3 ways you can recover investment losses if you were the victim of fraud. 1. Mediation or Arbitration FINRA – the Financial Industry Regulatory Authority – the public/private organization that creates a forum for investors to recover damages from fraud, allows for a number of dispute resolution avenues. To be qualified to use the services of FINRA, the alleged occurrence or event forming the basis of the fraudulent act must have happened within the last six years. If that is the case, then you may want to file an arbitration with FINRA. Compared to going to court, arbitration can be a less costly, easier, and faster option to […]

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