Securities Fraud and FINRA Arbitration

What Is Securities Fraud

Securities fraud refers to wrongful practices in the securities industry that aim to deceive investors. This fraud is a serious offense that can lead to substantial financial losses.

If securities fraud has impacted you, you could have the right to demand FINRA arbitration and pursue damages.

The securities fraud plaintiff attorneys with Erez Law, PLLC, understand the complexities of a securities fraud lawsuits. We can help protect you from unscrupulous parties and pursue compensation for your losses.

Contact Erez Law, PLLC today for a free, confidential consultation.

Understanding Securities Fraud: A Brief Overview

Securities fraud encompasses unlawful activities, including misrepresentation, unsuitable recommendations, excessive trading or churning, over-concentration, unauthorized trading, and Ponzi schemes. These deceptive practices can occur in various investment vehicles, such as stocks, bonds, mutual funds, and options.

The perpetrators of securities fraud often exploit investors’ trust and use false or misleading information to induce them into making investment decisions that ultimately benefit the fraudsters. Securities fraud is also committed when investment advisors recommend unsuitable investments or trade primarily for the purpose of obtaining more compensation for themselves rather than considering what is in the best interest of the investor whose interests they are paid to represent. While perpetrators of securities fraud may face criminal prosecution, victims may be entitled to pursue separate civil action to seek compensation for their losses.

The U.S. Securities and Exchange Commission (SEC) regulates the securities industry in the United States. The SEC’s website provides valuable information about securities regulations, investor education, and enforcement actions against fraudulent individuals or entities. Understanding the laws the SEC enforces can help investors navigate the complex world of securities.

The Financial Industry Regulatory Authority (FINRA) is a government-authorized watchdog that oversees all U.S. broker-dealers. FINRA is a not-for-profit organization dedicated to safeguarding capital market integrity with essential support to investors, policymakers, regulators, and other stakeholders. If you wish to sue a brokerage firm in the United States, you must go through FINRA arbitration.

Recognizing Signs of Securities Fraud

Investors should be aware of the warning signs and red flags associated with securities fraud, including:

A simple way to recognize potential fraud is to think of the adage, “If it sounds too good to be true, it probably is.” The Federal Bureau of Investigation (FBI) offers resources highlighting common fraud scenarios and providing guidance on protecting yourself from falling victim to unlawful activities.

The Southern District of Florida United States Attorney’s Office provides updates on recent prosecutions related to securities fraud and other financial crimes. By staying informed about the latest cases, investors can better understand fraudsters’ tactics and take appropriate measures to protect their investments.

Can Securities Fraud Victims Pursue Civil Litigation for Damages?

If you have fallen victim to securities fraud, the exclusive resource for suing brokerage firms for your losses is to participate in FINRA arbitration. It is essential to carefully consider this step and consult with our securities fraud attorneys to assess the merits of your case.

If you are considering taking legal action against a registered investment advisor, there is likely an arbitration clause in your agreement. While this is not technically FINRA arbitration, it follows a similar process and capable legal representation is essential to ensure you have a chance at recovering your losses.

The FINRA arbitration process for securities fraud involves several steps:

  • Filing a statement of claim
  • Selecting arbitrators
  • Gathering evidence
  • Consulting experts
  • Negotiating a settlement
  • Preparing a case for arbitration if a settlement is unlikely

Legal Remedies Available for Victims of Securities Fraud

Victims of securities fraud may be entitled to various forms of compensation. These can include recovering the investment losses suffered due to the fraudulent activities and potentially receiving punitive damages to punish the wrongdoers.

Erez Law: Championing Investor Rights

Taking legal action against securities fraud not only provides a potential avenue for recovering financial losses but also serves as a form of empowerment for victims. By holding the perpetrators accountable, victims contribute to the overall integrity of the financial markets. Pursuing FINRA arbitration can also act as a deterrent, preventing future fraud and protecting other investors from similar harm.

Erez Law, PLLC, is a preeminent trial firm, trying over 50 cases to verdict and achieving exceptional results for over 1,000 clients. Our securities fraud plaintiff attorneys have recovered over $200 million in investment losses. We have the experience, strategies, and resources to help defrauded investors pursue maximum damages through a settlement or verdict.

Contact Erez Law for a Free, Confidential Consultation

While regulatory bodies and law enforcement agencies are crucial in combating securities fraud, investors are also responsible for remaining vigilant. By staying informed, conducting due diligence on investment opportunities, and seeking professional advice, investors can protect themselves from falling victim to fraudulent schemes. Remember, prevention is always better than pursuing legal action after the fact.

However, our securities fraud plaintiff attorneys can guide you through the process of filing a FINRA arbitration for securities fraud damages when the circumstances require it. If you believe you have been a victim of securities fraud, protect your financial interests. Consulting with a reputable securities fraud attorney is a critical first step in understanding your rights and exploring your legal options. You and your attorney can discuss whether participating in arbitration for securities fraud is viable.

Our experienced attorneys work on a contingency fee basis, so you owe no fees unless we win. Contact Erez Law, PLLC today for a free, confidential consultation. Your financial security is worth fighting for.