Investment fraud lawyers represent investors who have suffered losses due to broker misconduct, financial advisor negligence, or securities fraud. At Erez Law, our attorneys pursue recovery through FINRA arbitration, AAA and JAMS proceedings, and state and federal litigation on behalf of clients nationwide and internationally.
A financial advisor or broker holds a position of trust. When that trust is violated through unsuitable recommendations, unauthorized trades, or outright fraud, the losses often reach well beyond a single account. Retirement plans, education funds, family trusts, and decades of careful saving may all be affected.
With 20+ years of experience, $300 million recovered, and a 99% success rate, our firm brings the preparation and resources needed to take on the largest brokerage firms in the industry.
Why Investors Investment Fraud Attorneys from Erez Law
Selecting an investment fraud lawyer is one of the most consequential decisions an investor makes after discovering misconduct. Brokerage firms evaluate the law firm on the other side of every claim, and that assessment influences how the case is treated from the first filing through resolution.
A Firm Focused Entirely on Investment Fraud
Erez Law handles one type of case: investor claims against brokerage firms and financial advisors. This singular focus means every resource, every strategy, and every hour of preparation goes toward recovering investment losses. Our attorneys do not divide their attention across unrelated practice areas.
A Track Record Built in the Hearing Room
Our firm has recovered $300 million for investors with a 99% success rate. These results reflect an approach grounded in preparation, not volume. We have represented claims against some of the largest brokerage firms in the country, including Merrill Lynch, UBS, Morgan Stanley, Wells Fargo Advisors, and LPL Financial.
Trial-Ready from Day One
Every case is prepared as though it may proceed to a full hearing. That means aggressive, discovery-driven investigation from the outset: reviewing account records, identifying supervisory failures, building a damages model, and preparing for cross-examination. Brokerage firms and their defense counsel recognize when the opposing side is ready, and that recognition shapes settlement discussions.
Nationwide and International Representation
Our attorneys represent investors throughout the United States, Puerto Rico, and internationally, including clients across Latin America. We handle FINRA arbitration, AAA and JAMS proceedings, and state and federal litigation, choosing the forum that serves each client’s interests.
Contingency Fee Structure
Erez Law works on a contingency fee basis, meaning no attorney fees are owed unless we recover for you. Clients are responsible for case-related costs, and the contingency fee is calculated before deducting those costs. Every case begins with a free, confidential consultation.
Bilingual Support
Our team serves clients in English and Spanish. International investors may also reach us via WhatsApp at 305-336-8068 (text only).
How Does Investment Fraud Happen?
Investment fraud does not always look like a dramatic scheme. In many cases, it starts with a trusted advisor making recommendations that serve the broker’s interests rather than the client’s. The misconduct may be subtle at first, and losses can accumulate before the investor recognizes a pattern.
Unsuitable Investment Recommendations
Brokers and many financial advisors must follow rules that require recommendations to fit a client’s risk tolerance, goals, and time horizon, depending on the type of account and relationship.
A suitability claim arises when the advisor disregards these factors. For example, a retiree placed into high-risk speculative products or a conservative investor steered toward volatile alternative investments may both have grounds for recovery.
Churning and Excessive Trading
Churning occurs when a broker engages in frequent buying and selling primarily to generate commissions. The activity benefits the broker’s compensation while eroding the investor’s account value through transaction costs. Trading patterns, turnover ratios, and commission-to-equity ratios often reveal whether activity crossed the line from active management into excessive trading.
Unauthorized Trading
Trades made without the investor’s authorization, such as in a non-discretionary account or outside the scope of any trading authority, may constitute unauthorized trading. This includes transactions placed outside the scope of a limited trading authorization or in direct contradiction to the investor’s stated instructions.
Misrepresentation and Failure to Disclose
Brokers have an obligation to provide accurate, complete information about the investments they recommend. Misrepresentation occurs when material facts are distorted or omitted. Common examples include understating risk, overstating projected returns, or failing to disclose conflicts of interest, fees, or the illiquid nature of a product.
Overconcentration
A properly managed portfolio reflects diversification appropriate to the investor’s goals. Overconcentration occurs when a disproportionate share of the portfolio is allocated to a single security, sector, or product type, exposing the investor to avoidable risk.
Selling Away
Selling away occurs when a broker participates in a securities transaction outside the brokerage firm’s oversight, often involving investments not approved by the firm and not properly disclosed for firm review. These transactions may involve unregistered securities or private placements that bypass the firm’s compliance oversight, leaving the investor with limited protections.
Ponzi Scheme Losses
Ponzi schemes use funds from new investors to pay returns to earlier ones, creating the illusion of legitimate performance. When the scheme collapses, investors face devastating losses. Our investment fraud lawyers pursue recovery from the brokers, firms, and custodians who facilitated these schemes.
Many investment and security fraud cases we have handled include:
Which Investment Products Are Frequently Involved in Fraud Claims?
Certain investment products appear more frequently in fraud and misconduct claims than others. The complexity, illiquidity, or commission structure of these products may create incentives for brokers to recommend them regardless of suitability.
- Variable annuities: Complex insurance-based products with high fees, surrender charges, and tax implications that may be unsuitable for many investors, particularly seniors.
- Alternative investments and private placements: Illiquid, high-risk offerings often sold with limited disclosure. Investors may have difficulty accessing their funds or obtaining accurate valuations.
- Oil and gas investments: Tax-advantaged energy programs that frequently involve speculative risk and limited transparency. These products are a common source of claims from retirees and conservative investors.
- Hedge funds: Pooled investment vehicles with limited regulatory oversight and restricted redemption terms that may expose investors to undisclosed risks.
- Junk bonds: High-yield, high-risk debt instruments that may be marketed as income-producing without adequate disclosure of default risk.
The presence of these products in a portfolio does not automatically indicate fraud. However, when they were recommended without proper disclosure or to investors for whom they were unsuitable, a claim may exist.
Where Investment Fraud Claims Are Filed
Most investor disputes against brokerage firms proceed through FINRA arbitration rather than court. This is because brokerage account agreements almost universally include a pre-dispute arbitration clause.
FINRA Arbitration
The Financial Industry Regulatory Authority (FINRA) administers the primary dispute resolution forum for claims between investors and broker-dealers. Under FINRA Rule 12200, a member firm generally must arbitrate when a customer requests arbitration, and the dispute relates to the firm’s business or its registered representatives.
Our investment fraud lawyers at Erez Law have handled thousands of FINRA arbitration cases. We prepare every claim from day one as though it may proceed to a full hearing, because that level of preparation is what drives outcomes at every stage.
AAA and JAMS Arbitration
Claims against registered investment advisors or parties not subject to FINRA jurisdiction may proceed through the American Arbitration Association (AAA) or JAMS. These forums have their own procedural rules and fee structures. Our attorneys represent investors in all three arbitration forums.
State and Federal Courts
In limited circumstances, investment fraud claims may be pursued through litigation. Court may be appropriate when the claim involves parties outside FINRA’s jurisdiction, when statutory remedies are available, or when the arbitration clause is unenforceable.
Our firm evaluates each case to determine the appropriate forum for each case and advise our clients on their options.
Current Investment Fraud Investigations
Currently, the investment loss attorneys at Erez Law, PLLC are investigating a number of brokers, brokerages, hedge funds, and investment firms for their role in securities fraud and investment losses. Some of these include:
- Easterly ROCMuni Losses
- David Lerner Brokerage Firm
- Northstar Financial Services (Bermuda)
- Steepeners/Structured Products
- Conservation Easements
- Northstar Healthcare Income REIT
- UBS Yield Enhancement Strategy (YES)
- GPB Capital Holdings
- REIT Investment Loss
- GWG Holdings Inc.
- See All Current Investigations
The investment fraud attorneys of Erez Law have the depth, resources, and personnel that other securities fraud law firms – both large and small – don’t possess. Find out if you have a case against your broker by calling Erez Law or filling out our online contact form to get in touch. A dedicated investment fraud lawyer of our team will return your call and collect more information about your situation. Our consultations are always free, confidential, and protected by the attorney-client privilege.
How the Investment Fraud Attorneys at Erez Law Build Cases
Brokerage firms and their defense counsel evaluate the law firm on the other side of every claim. Investors represented by proven, trial-ready attorneys receive different treatment at the negotiation table and in the hearing room.
At Erez Law, our case-building approach reflects a “no stone unturned” methodology grounded in discovery, evidence, and preparation.
Account and Trading Analysis
Every case begins with a detailed review of account statements, trade confirmations, and transaction histories. This analysis identifies patterns of misconduct, quantifies losses, and establishes the factual foundation for the claim.
Discovery and Document Production
FINRA’s discovery process requires brokerage firms to produce account records, internal correspondence, compliance files, supervisory records, and communications related to the investor’s account. Our attorneys know which documents to request, how to interpret compliance files, and where to find the evidence that drives case value.
Damages Calculation
Quantifying investment losses requires financial analysis. The appropriate measure of damages may include net out-of-pocket losses, market-adjusted losses, well-managed account comparisons, fees and commissions paid, and interest. Our team works to present a clear, defensible damages model for each claim.
Hearing Preparation
Our attorneys prepare for hearings with the same rigor applied to trial preparation. This includes witness preparation, exhibit organization, opening and closing argument development, and cross-examination strategy. Brokerage firms and their counsel recognize when the other side is ready for a hearing, and that recognition influences settlement discussions.
Who Do Investment Fraud Lawyers Represent?
Erez Law represents a broad range of investors and entities affected by broker misconduct and securities fraud.
- Individual investors who lost money due to unsuitable recommendations, unauthorized trading, or misrepresentation
- Retirees and seniors whose retirement savings were placed in high-risk or inappropriate investments
- Trusts and estates managed by fiduciaries who failed to protect beneficiary interests
- Pension plans affected by advisor negligence or fraud
- Family partnerships and family offices with complex, multi-account relationships
- Ultra-high-net-worth individuals targeted for large-scale misconduct
- International investors harmed by U.S.-based brokers and brokerage firms
Our attorneys represent clients throughout the United States, Puerto Rico, and internationally, including investors in Latin America. Our team is equipped to handle claims in English and Spanish.
FAQs for Investment Fraud Lawyers
Most brokerage account agreements contain a mandatory arbitration clause that requires disputes to proceed through FINRA. In limited circumstances, claims may be filed in state or federal court. An investment fraud attorney reviews the account agreement and advises on the appropriate forum.
FINRA has a six-year eligibility rule that may bar claims based on when the key events occurred. State and federal statutes of limitations may impose shorter deadlines depending on the claim type. Consulting with an investment fraud attorney promptly helps preserve the ability to pursue recovery.
Useful evidence includes brokerage account statements, trade confirmations, account opening documents, risk disclosure forms, written correspondence with the broker, and notes from investment discussions. Internal brokerage firm documents obtained through discovery often provide the strongest proof of misconduct.
You can look online for a securities fraud attorney. However, don’t pick the first firm you see. Perform thorough research into their credentials, client reviews, and ratings from legal organizations. Schedule a consultation and gather as much information as possible from the person you meet. You should also ask around for referrals from people you trust, such as friends or family.
Erez Law works on a contingency fee basis, meaning no attorney fees are owed unless we recover for you. Clients are responsible for case-related costs, and the contingency fee is calculated before deducting those costs. We offer a free case review to evaluate potential claims.
Market losses alone do not create a claim. However, when a broker’s misconduct amplified losses beyond what a properly managed portfolio might have experienced, the excess losses may be recoverable. Market-adjusted damages calculations help isolate the portion of losses attributable to misconduct.
What Damages May Be Recovered in an Investment Fraud Case?
The damages available in an investment fraud claim depend on the facts of the case and the forum in which it is filed. Potential categories of recovery include the following.
- Net out-of-pocket losses: The difference between the amount invested and the amount recovered.
- Market-adjusted losses: Losses measured against what a properly managed portfolio might have earned during the same period.
- Fees and commissions: Excessive or undisclosed charges paid as a result of the misconduct.
- Interest: Pre-judgment or post-judgment interest on the losses sustained.
- Attorney fees and costs: In some cases, the arbitration panel may award attorney fees to the prevailing party.
- Punitive damages: Available in limited circumstances where the misconduct was particularly egregious.
A securities arbitration lawyer evaluates the facts of each case to determine which categories of damages apply and how to present them.
Investment Fraud Claims Require a Different Kind of Preparation
Most investors filing a FINRA arbitration claim are doing it for the first time. The brokerage firms that defend these claims are not small operations. They retain experienced defense counsel, maintain institutional knowledge of arbitration strategy, and have significant resources at their disposal. The preparation investors bring to the other side of the table matters.
Erez Law has tried over 50 cases to award in FINRA arbitration and secured the largest sanctions award in FINRA arbitration history against Morgan Stanley. That hearing room experience informs how we build every case, whether it resolves through settlement or proceeds to a panel decision.
Call 305-728-3320 or toll-free 888-840-1571 for a free, confidential case review. Hablamos Español. International clients may reach us via WhatsApp at 305-336-8068 (text only).