Securities Fraud FAQs

Attorneys Answer the Most Common Securities Fraud Questions

Compiled by our securities fraud attorneys, this page provides answer to the most commonly asked questions regarding investment fraud and stock broker negligence claims. The answers contained herein will apply to most general investment fraud questions; for specific answers regarding your personal circumstances, please contact our firm to receive a free securities fraud case review. Simply complete our online contact form or use the chat feature to contact the firm; one of our attorneys handling national investment fraud claims will contact you personally to discuss your case in detail.

What is investment fraud?

Investment fraud occurs when a stock broker, investment firm, or financial advisor misrepresents an investment. Without full information about the associated risk, the investor may lose money unexpectedly.

Who can file a securities fraud claim or initiate FINRA arbitration?

Any investor who has sustained financial losses they believe may be linked to securities fraud may be eligible to file a claim.

Does it cost anything for you to review my case?

We will always listen to your circumstances and give you our analysis of your case without any cost or further obligation.

How do I know if financial losses are the result of securities fraud?

It is normal to feel embarrassed by an investment loss and to blame oneself. The loss may not have been your fault. Trust your gut if you think fraud may have played a role in an unexpected financial loss. Here are some common signs your stock broker may have been negligent in handling your investments: Securities Fraud Lawyer

The losses you have sustained are in excess of the risk you had agreed upon.
You detect a trend of excessive trades or suspect unauthorized trading.
You stock broker stops returning calls or will not directly answer questions about the financial loss.

How much will it cost to file an investment fraud claim or a securities fraud FINRA arbitration case?

We will represent all persons involved in investment fraud claims or FINRA arbitration on a contingency basis, meaning there are never any legal fees unless we win compensation in your case. For a free no-obligation consultation please fill out our short online contact form and one of our attorneys handling securities fraud claims will contact you to answer any of your questions.

Aren't most securities claims filed as class action lawsuits, which recover only small, symbolic settlements?

Securities claims are typically subject to the FINRA arbitration process. In cases where many investors have been subject to a similar scheme or fraudulent investing practice by a particular stockbroker or firm, claims may be consolidated for efficient processing. However, the level of compensation awarded is always dependent on the specific details of each case.

We're not the type of people who sue; do we really need to file a lawsuit?

If a member of your family has lost investments as a result of securities fraud, your family's financial security may be threatened. Losing what you have worked to build over time can set you back from long term financial goals such as building a college fund or saving for retirement. If you or your family have suffered losses related to securities fraud, filing a claim against the broker or investment firm is the only way to recover what is rightfully yours. Furthermore, your claim sends a message to the broker that investor misconduct will be punished, perhaps preventing future acts of securities fraud. Unfortunately, in all too many cases it is only the fear of arbitration and large settlements that makes a company become a better corporate citizen.

How much time do I have to file an investment fraud claim?

Most states have securities fraud time limits; however, the majority of all persons having sustained losses related to investment fraud will fall within those time limits if they contact an attorney in the near future. For specific time limits for your claim, please fill out the form at right and one of our attorneys will contact you as quickly as possible, usually within the hour.