Alternative Investment Loss Attorney

The costs of investment fraud effect everyone.

High risk sometimes means high reward, but if your alternative investment results in a loss, you may need an attorney to help you pursue the lost funds. Alternative investments, including venture capital, hedge funds, private equity, and real estate can be highly profitable but represent a substantial risk in an investor’s portfolio. If you experienced financial losses related to an alternative investment due to a broker’s negligence or fraudulent actions, the attorneys at Erez Law are here to help.

Benefits of Working with an Alternative Investment Loss Attorney

The world of alternative investments is highly complex and volatile. Despite their risk, investors pursue alternative investments because of the possibility of significantly higher returns that exceed those of traditional investments. Although the risk of loss exists for any investment, an alternative investment loss attorney will examine whether your broker breached their professional duties through negligent or fraudulent behavior. If your broker engaged in such misconduct, you may be able to recover your financial losses.

Types of Legal Representation Offered by an Alternative Investment Loss Attorney

Investors sometimes turn to alternative investments to diversify their portfolios, which can provide more opportunities for brokers to engage in misconduct or securities fraud, resulting in financial losses for their investors. Our firm will work to hold these brokers accountable for our clients’ losses.

The alternative investment loss attorneys at Erez Law have a thorough understanding of the financial services industry and understand how investment losses can occur. We break down what is a highly specialized industry to examine how your broker may have mishandled your portfolio and whether any misconduct occurred. We will then advise whether you have a case to pursue.

An alternative investment loss attorney can assist you with matters involving the following:

The Recovery Process

Time is money, and the longer you have to wait to recover your financial losses due to broker misconduct or fraud means missed opportunities to pursue other investments. However, the recovery process and amount of recovery depend on the circumstances of each case. In alternative investment loss cases, the amount you may recover is based on the actual losses and commissions associated with the broker’s misconduct. You may also be able to pursue the related costs for bringing an investment claim, such as court or arbitration costs. At Erez Law, we have the skill to analyze your investment losses to determine what may be recoverable.

Overview of the Legal Process and Timeline for Recovering Losses

We will review your portfolio and any written agreements, along with all correspondence with your investment firm or broker, to determine whether there is actionable misconduct. Examples of such misconduct include:

  • Misrepresenting facts about your alternative investments
  • Providing inappropriate or unsuitable advice for your portfolio or risk tolerance
  • Failing to act in your best interest
  • Trading without your prior authorization
  • Failure to determine alternative investments are appropriate for you
  • Excessive trading which is not in your best interests to generate commissions

If we find that the investment firm or broker has engaged in negligent or fraudulent misconduct that directly correlates with the financial losses you sustained, we will advise you of your legal options to pursue the recovery of those losses.

Whether you can file a lawsuit or are required to arbitrate your claim depends on your written agreement with the broker or firm. Many agreements contain an arbitration clause that requires the matter to be heard before an arbitration board, such as the Financial Industry Regulatory Authority (FINRA).

If your agreement requires you to proceed with FINRA arbitration, you will initiate the action by filing a claim. The firm or broker has an opportunity to respond with an answer. An arbitration panel will be selected. Much like in a court of law, pre-hearing conferences will be conducted, and discovery requests and responses will be exchanged. Discovery is the process whereby each party can request the information the other party possesses concerning the client relationship and financial dealings.

A hearing will be set before the arbitration panel. Each side may have expert witnesses testify on their behalf. A final decision, which is binding on the parties, will be rendered. Although this process is typically much faster than litigating the matter in court, you could expect it to take as much as a year or eighteen months before a final decision is issued.

Importance of Evidence and Documentation

Because the investor has the burden of proving the broker’s misconduct or fraud, you must have the necessary evidence to demonstrate that the broker’s behavior resulted in your losses. This is a highly fact-sensitive inquiry that often involves the meticulous review of:

  • Financial records and account statements
  • Disclosures provided by the broker
  • Agreements with the financial services firm
  • Correspondence, including emails, between you and the broker

Our firm has extensive experience handling alternative investment losses, including those related to alternative assets and pension funds. We can evaluate whether you have an actionable claim by carefully reviewing and analyzing your portfolio and supporting documentation.

Steps Involved in Pursuing a Claim, Such as Arbitration or Litigation

If you are a victim of broker misconduct or securities fraud and we determine that you have an actionable claim and can pursue your financial losses, we will aggressively pursue recovery on your behalf. Following our investigation, we will attempt to negotiate a settlement without the need for litigation.

Because the timeline for initiating your claim against the broker or firm by lawsuit or through arbitration can vary, it is imperative to contact an alternative investment lawyer as soon as possible after the discovery of your financial losses. They will ensure all deadlines are met so you do not waive your right to recovery.

At Erez Law, we have represented victims of all types of investment fraud. Because of our experience handling alternative investment assets and losses, we are uniquely suited to help you pursue your alternative investment claim against a financial institution or broker who engaged in misconduct or fraud. Contact us today for a free consultation.