Skip Navigation
Team
overview

What is Securities Fraud?

Do you think you may have been a victim of securities fraud? What are your rights as an investor and what duties does your broker owe to you? How do you know if you have been defrauded by your stockbroker or investment advisor? What can you do about it, if you have been subjected to stockbroker fraud? You will find information at this web site which will assist you in addressing these questions and others which may arise in connection with improper investments and stockbroker/customer disputes.

Most investment losses are the result of market forces, trends and factors which have nothing to do with securities fraud. Stockbrokers do not have a crystal ball and they are not guarantors of investments. But if your losses have been the result of wrongful action or fraud, you ought to know because you may be able to do something about it and recover your losses. The information at this site will hopefully assist you in distinguishing between frivolous claims and claims with merit, sour grapes and securities fraud. Finally, this site should help you understand the securities arbitration process and which claims may be appropriate or eligible for arbitration.

Have you been the victim of bad investment advice?

Did your stockbroker recommend risky investments without explaining the risks?

Did your stockbroker make trades without your understanding or authorization?

Did your stockbroker excessively trade your account?

Securities investing and trading is carefully regulated by rules and laws for the protection of public investors. The violation of these rules, particularly through various deceptive actions and schemes to cheat or take advantage of investors, is commonly known as securities fraud. If you believe that you may have been a victim of securities fraud, you have certain rights which you should be aware of, rights which may provide you an opportunity to recover your losses from your stockbroker or brokerage firm.

Most investors who have been defrauded do not know what happened to their investments until it is too late. But even after the losses have occurred, the law provides a mechanism for investors to recover their losses which were caused by a stockbroker's misrepresentations or abuse of the account.

Federal and state laws provide a legal remedy for defrauded investors to recover their losses. Investors may also be entitled to compensation for the loss of income that their investments should have been generating, interest on the losses and legal fees.

A procedure has been established for the resolution of stockbroker/customer disputes in an efficient and economical manner through arbitration. Stockbrokers and brokerage firms are subject to binding arbitration of complaints regarding customer accounts. This provides the opportunity for defrauded customers to present their claims before an impartial panel of arbitrators whose decision will be binding on all the parties.

Stockbrokers and brokerage firms have certain obligations and duties to their customers. And investors have a right of recourse if their account has been abused or if they have been defrauded by an investment advisor. An investor who believes that he or she may have been the victim of an unscrupulous stockbroker should consult with an attorney to learn more about their rights under the circumstances. Additional information may be obtained through links in this web site, which is intended for general information purposes only.

If you invest in securities (stocks, bonds, options, limited partnerships, mutual funds, certain commodities, etc.) and you have experienced problems with your investments, your stockbroker or investment advisor, you may be a victim of securities fraud. Most investment advisors and stockbrokers are honest, decent individuals who follow the rules of the securities industry and provide a valuable service to the public. However, unfortunately there are some unethical and dishonest investment advisors, and there are some brokerage firms that do not supervise their brokers and accounts as carefully as they are required.

The material is presented here in a manner intended to be accessible to typical investors in order to provide basic information which people ought to be aware of in dealing with their investment advisors and brokerage firms. Hopefully, a better informed investor will be better able to protect himself, evaluate what has happened in an account, and have some idea what might be done about it. All investors should be aware of their rights in order to better protect themselves and to have a higher level of awareness of the standards to be expected in an investment relationship. Many stockbroker/customer disputes might be avoided by a better informed investor going into the relationship with his eyes open and knowing his rights.