What Is Securities Fraud?
Securities fraud may take many forms. One of the most common examples of fraud is when financial professionals encourage clients to invest in risky ventures that devalue their assets or act without the client’s knowledge.
In some cases, securities fraud victims may be able to recover some or all of their losses with the help of a securities fraud lawyer.
Call Sokolove Law today at (800) 995-1212 to learn more.
Types of Securities Fraud
Securities and stockbroker fraud happen every day, so it’s important to understand the risks, warning signs, and different types of fraud.
Types of securities and stockbroker fraud include:
- Churning: Engaging in excessive trading in order to generate commissions
- Failure to Execute: Not executing a client’s order in a timely manner
- Inaccurate or Misleading Internal Reports: Misrepresenting of internal financial reports by public companies, which causes shareholders to suffer damages
- Misrepresentation or Omission: Knowingly offering inaccurate, incomplete, or biased information
- Overconcentration: Recommending or failing to diversify a portfolio that is overconcentrated
- Selling Away: Recommending to a client an alternative investment that has not been reviewed, approved, or recommended by the firm
- Unreasonable Rates: Some programs like cash sweep accounts may have lower interest rates that lead to underpaying investors.
- Unsuitable Recommendations: Advising an investor to purchase, sell, or exchange a security that is not suitable given the client’s financial situation and needs
Other types of securities fraud include affinity fraud, internet and social media fraud, Ponzi schemes, and pyramid schemes.
Learn more about the different types of securities fraud and real-life examples of financial advisor scams.
Frequently Asked Questions About Securities Fraud
Below, you will find some common questions we are asked about securities fraud and our answers. If you have additional questions, contact Sokolove Law today.
How do I know if I am a victim of securities or stockbroker fraud?
There are several steps you can take to investigate potential acts of securities or stockbroker fraud if you believe you are a victim.
Those who think they have experienced fraud are encouraged to gather all relevant financial paperwork, check their trade confirmations, review their financial statements, and collect any relevant evidence that fraud may have taken place.
Doing this on your own may seem overwhelming. The experienced securities fraud lawyers at Sokolove Law can do the legwork and help you determine your next steps.
How does this type of fraud happen?
This type of fraud may happen as a result of unsuitable or poor investment advice from an investment broker or advisor.
Victims of potential securities or stockbroker fraud may be eligible to recover some or all of their financial losses through a lawsuit. Call Sokolove Law today at (800) 995-1212 to learn whether you may qualify.
How can I recover my losses?
Eligible victims of securities and stockbroker fraud may be able to recover their financial losses through a lawsuit.
Reach out to Sokolove Law today to get a free legal case review and learn whether you may be eligible.
Work With National Securities Fraud Law Firm — Sokolove Law
For more than 45 years, Sokolove Law has helped people like you get the legal support they need, regardless of race or income. As a national law firm, we have helped people in all 50 states.
When you work with Sokolove Law, you will gain a trusted partner. Our team will help you better understand your situation and guide you through the often overwhelming legal process.
We offer a free, no-obligation legal case review and only collect a legal fee if we are successful in helping to recover some or all of your losses.
Contact Sokolove Law today to start your free legal case review.
