Fraud Lawyers in Florida

Investing in securities can be a great way to secure your financial future; however, it’s important to understand the ways your investments can be mishandled. Understanding the different types of fraudulent activity that can occur is crucial if you plan to invest your money. Making an arrangement with a stockbroker should be carefully considered, as there are many ways that your investments can be mishandled. Stockbroker fraud constitutes a large portion of all lawsuits related to securities, so understanding the different ways your broker could be mishandling your accounts is essential for investors.

You might feel that your investments are unsuitable to your portfolio, over-concentrated in one area or industry, were misrepresented to you (either by purposefully withholding information or presenting misleading information), or that your broker was churning your investments. Churning refers to when a broker trades excessively on your behalf to increase their commissions. Insurance and annuity fraud is often subject to this; annuities, for example, offer some of the highest commissions for stockbrokers, and as such can be misrepresented or sold to investors when it is not in their best interest.

In addition to stockbroker fraud, there are other abuses that regulatory agencies like FINRA & the SEC (Securities & Trade Commission) look out for. Insider trading, fraud and market manipulation also occur in the industry, when individuals privy to certain company information use that information to help theirs or others investments. Investment schemes need to also be considered – these include methods for stealing investor’s money, using misrepresentation and instilling false hope into the investor. A well-known example of an investment scheme is the Ponzi scheme – Where brokers will use the money from new investors to pay their current clients, rather than money generated from the investment. To this end, when the Ponzi scheme is shut down, there isn’t enough real money that can be used to pay back investors. Pyramid schemes are another example of an investment scheme.

Securities violations come in many different forms and carry severe punishments. The process for solving these issues can come in the form of litigation or, more commonly, arbitration, and anyone looking to recover damages from a securities lawsuit should fully understand both options and the prerequisites to filing a claim. If you feel your investments have been mishandled or you may have been subject to securities abuses, it’s important to speak with an attorney who specializes in securities arbitration and litigation. The Hanley Law offer free case evaluations and can help you navigate through your claim.

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