Every year, innocent investors lose millions of dollars to fraud perpetrated by unscrupulous brokers, financial advisors, and the firms that employ them. These investors lose retirement nest eggs, emergency savings, and the wealth earned over a lifetime of hard work. If you’ve been the victim of investment fraud, you need to learn about your legal options. An experienced New Jersey investment fraud lawyer can help.
At Erez Law, PLLC, our attorneys have earned a national reputation for tireless advocacy on behalf of the victims of investment fraud. For more than 20 years, we’ve been dedicated solely to the pursuit of justice for investors, achieving a 99% success rate and more than $175 million in compensation for investors. It’s a track record that has prepared us to take on misconduct at a variety of levels, from individual brokers to the largest firms on Wall Street.
If you have suffered investment losses due to securities fraud, don’t wait another day to begin pursuing the financial compensation you deserve from those who defrauded you. Turn to Erez Law, PLLC, for a free evaluation of your securities fraud case. A New Jersey investment fraud lawyer from our firm can walk you through your legal rights and help you demand the money you are owed.
What Is Securities Fraud?
Securities fraud involves conduct that recklessly or intentionally induces an investor to transact in securities based on inaccurate or misleading information offered by the defrauding party. This is often at odds with the investor’s strategy and leads to financial losses. Securities fraud can be committed by various parties, including stockbrokers and brokerages, financial institutions, investment advisors, and companies that issue securities. Fraud can result in regulatory oversight, criminal prosecution, and civil litigation brought by wronged investors.
Signs You May Have Been the Victim of Securities Fraud
Common signs that you may have suffered investment losses due to securities fraud include:
- Your broker, financial advisor, or the company you invested in stops returning your calls or emails, stops posting press releases, or removes their public presence.
- Your investment statements are contradictory or inscrutable.
- An investment experiences a dramatic drop in value over a short period of time.
- An investment continues to lose value despite the broader market climbing.
- Financial results regularly fail to meet publicly announced expectations.
- Important information regarding an investment is not disclosed to you.
- You are assessed tax liabilities for investments that are purportedly losing money.
Every investment involves risk, so these signs do not necessarily mean that you have been the victim of fraud. However, if you see these signs — particularly if you see several of these signs — you should talk to a New Jersey investment fraud lawyer who can further investigate your situation and determine your next steps.
How a New Jersey Investment Fraud Attorney Can Help You
If you suspect you have been the victim of securities fraud, a New Jersey investment fraud attorney from Erez Law, PLLC, can help you by:
- Conducting a thorough review of the facts and circumstances of your investor fraud case, reviewing all available evidence to build a case showing that you were defrauded
- Identifying the party or parties that can be held responsible to compensate you for your losses
- Calculating the full extent of your financial losses from the investment or securities fraud
- Filing formal complaints with government and regulatory agencies
- Pursuing maximum compensation on your behalf
Common Types of Securities Fraud Cases Our Firm Helps With
The investment loss attorneys of Erez Law, PLLC, have extensive experience representing investors in securities fraud cases that arise from:
- Hedge fund fraud – Hedge funds are private investment funds in which money is pooled from multiple investors and managed according to an investment strategy. Misconduct among hedge fund managers can put investors at risk.
- Junk bond fraud – Junk bonds refer to subprime corporate bonds or bond funds, which are typically a high-risk investment due to the likelihood of default.
- Oil and energy investment fraud — This typically involves failing to disclose all material information regarding the risk and volatility of investing in oil and energy.
- Ponzi scheme fraud – A Ponzi scheme is an illegal enterprise in which an investment fund pays previous investors from money obtained from new investment, with new investors lured in with promises of market-beating returns.
- Preferred shares of stock fraud – Preferred shares of stock may not be a suitable investment, or brokers may not explain the related risks.
- Private placement fraud — This type of fraud involves startups and non-public companies that fail to disclose material information, such as the company’s metrics or conflicts of interest.
- Variable annuity investment fraud – Variable annuity funds are financial instruments that pay investors income that is calculated according to the fund’s performance.
- Stockbroker fraud and misconduct — This covers a broad range of behavior, including making investment recommendations or choices on behalf of a client that either fail to serve the client’s interests or that are intended to benefit the broker to the client’s detriment.
- Elder financial fraud — Many unscrupulous investment professionals target the elderly in the belief that they will not be able to discern fraud or take action if it is discovered.
- EB-5 Immigrant Investor Program fraud — This concerns fraudulent exploitation of foreign nationals seeking EB-5 visas, which allow them to become lawful permanent residents after they have made investments in U.S. companies that support hiring and economic growth.
What Is the Securities Fraud Statute of Limitations?
Federal law and state securities law set time limits for how long investors have to file lawsuits seeking compensation from those who defrauded them. These time limits are known as statutes of limitations. In addition, the Financial Industry Regulatory Authority (FINRA) limits the amount of time defrauded investors have to file a securities fraud claim.
Due to the complex nature of these claims, you should speak to a New Jersey investment fraud lawyer as soon as possible to determine a timeline for pursuing the financial compensation to which you are entitled.
How Much Are Securities Fraud Attorneys’ Fees?
At Erez Law, PLLC, we understand the financial pressure you may face after being the victim of securities fraud. For this reason, our firm handles investment fraud cases on a contingency fee basis. This means you will not need to pay anything upfront to hire our firm. Instead, we are only paid a fee when we recover compensation in your investment dispute. You may also be able to request fee shifting under certain circumstances, which requires defendants in a fraud case to pay the legal fees and costs of the plaintiffs.
Resources for New Jersey Investors
New Jersey investors who have suffered from securities fraud can turn to resources such as:
- New Jersey Bureau of Securities – This state agency oversees the issuance and transaction of securities within New Jersey.
- New Jersey Division of Consumer Affairs – This state agency investigates claims of violation of consumer protection laws.
- New Jersey Uniform Securities Law and Regulations – This state law governs securities within New Jersey.
- FINRA – The Financial Industry Regulatory Authority is a private self-regulatory agency for the financial industry that oversees its member institutions and professionals.
- U.S. Securities and Exchange Commission – This federal agency is responsible for enforcing U.S. securities laws and regulations and overseeing the national securities industry.
Although these resources can help you investigate your claims of securities fraud, government and private regulatory agencies often have limited resources for helping you recover compensation for the losses that you have suffered. That makes it important to also talk to a New Jersey investment fraud lawyer about the steps you can take to pursue financial recovery.
Talk to Our New Jersey Securities Fraud Attorneys Now
If you’ve been the victim of investment fraud, contact Erez Law, PLLC, today for a free, confidential consultation with our New Jersey securities fraud lawyers. Our legal team can help you pursue financial recovery for your losses and hold those responsible for the fraud accountable for their actions. We represent investors in Newark, Jersey City, Paterson, and throughout New Jersey.