Investing in a reputable business can be an easy way to achieve your financial goals. But unfortunately, the number of fraud cases in investment is increasing rapidly, which can result in substantial losses and ruin your financial future.
In fact, from 2020 to 2022, there was a tenfold increase in the financial losses suffered by people over 60 years in the United States due to investment scams. And seniors who fell victim to these scams reported losses exceeding $990 million, a stark contrast to the roughly $98 million reported in 2020.
So, if you have been a victim of investment fraud or suspect that you may be involved in a fraudulent scheme, you might need the help of an attorney from a reliable firm like My RIA Lawyer.
And in this guide, we’ll shed light on what a securities lawyer is and how they can help you with investment fraud cases. Keep reading to explore more!
What is a securities lawyer?
A securities lawyer is a legal professional who specializes in the laws and regulations governing the securities industry.
This industry is regulated by various federal and state agencies, such as the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the state securities commissions. And securities lawyers are well-versed in the regulations set by these organizations.
They can represent various parties involved in the securities industry, such as issuers, brokers, dealers, investors, regulators, and litigants.
How can a securities lawyer help you with investment fraud cases?
One of the most important roles of a securities lawyer is to help investors who have been defrauded or harmed by fraudulent or negligent conduct in the securities industry.
A securities lawyer can help you with investment fraud cases by:
- Evaluating your case and determining your legal options
- Gathering evidence and conducting discovery to prove your claims
- Negotiating with the other party or their counsel to reach a settlement
- Seeking compensation for your losses and damages in court
Types of cases a securities lawyer can help you with
Now that you know what a securities lawyer is and how they can help you, let’s take a look at the types of investment fraud cases they can help you with.
Ponzi schemes
A Ponzi scheme is a fraudulent investment scheme where the operator pays returns to existing investors from new investors’ money rather than from legitimate profits.
The conviction and sentencing of the American investment adviser Bernard Madoff in 2009, where he received a 150-year prison term for committing 11 federal crimes related to a $65 billion Ponzi scheme, significantly raised awareness among investors about this form of fraud.
If you find yourself trapped in a Ponzi scheme, a securities lawyer can recover your losses by identifying the operator and their accomplices and filing claims against them.
Pyramid schemes
A pyramid scheme is another potential fraudulent investment scheme where participants recruit new investors and receive commissions or fees based on the number of recruits rather than on the value of the service offered.
It often involves a low-quality or nonexistent product or service that serves as a cover for the recruitment activity and normally collapses when the recruitment slows down or stops – leaving most participants with no income or product.
Again, a securities lawyer can help you with participating in class action lawsuits or mass arbitration proceedings to recover damages.
Insider trading
Insider trading is a practice where someone trades securities based on material, nonpublic information that gives them an unfair advantage over other investors.
The information can come from various sources, such as corporate insiders, employees, consultants, analysts, lawyers, accountants, or hackers.
The Insider Trading & Securities Fraud Enforcement Act of 1988 (ITSFEA) was a significant U.S. legislation designed to strengthen the penalties for insider trading and to improve the SEC’s (U.S. Securities and Exchange Commission) ability to detect and prosecute those who commit securities fraud, including insider trading.
A securities lawyer can help you leverage the strict laws surrounding insider trading to recover any potential losses.
Affinity fraud
In this type of investment fraud, the operator targets members of a specific group, such as a religious, ethnic, professional, or social group.
The operator exploits the trust and loyalty that members have within the group and often uses respected leaders or influencers within the group to endorse or promote the scheme.
The most wicked part is that this scheme can involve any type of investment fraud, such as Ponzi schemes, pyramid schemes, pump-and-dump schemes, or unregistered securities.
And sometimes, it can be a mix of multiple frauds, making the case extremely complex and something that can be handled only with the help of an experienced lawyer.
Final words
The rise in investment fraud cases clearly highlights how important it is to seek professional assistance in such matters.
If you have unfortunately fallen victim to investment fraud, a trusted and experienced securities lawyer can play a crucial role in recovering your losses and holding wrongdoers accountable.
No matter which type of fraud you’re dealing with, a securities lawyer has the expertise to guide you through the legal process and help you pursue justice. Just make sure to hire someone experienced, such as an attorney from My RIA Lawyer in Atlanta.