Any serious investor knows that investing money and assets is all about taking risks and hoping that the investment will work out as planned. But the truth is, things don’t always turn out like we would want them to.
Anyone can suffer an investment loss and while sometimes it’s just sheer bad luck, other times, it’s often negligence, or worse, investment fraud.
The upturn is that investors can quickly recover their losses through compensation, but only if you follow the set legal protocols. Unfortunately, not many investors are well familiar with the laws governing investment fraud and find themselves in situations where even the smallest of errors could result in further losses.
This is where an investment fraud attorney steps in.
What Does an Investment Fraud Lawyer Do
An investment fraud lawyer is responsible for handling cases alleging that someone or an organization broke the law and defrauded another party. Such cases are often handled through FINRA arbitration or a court of law if escalated further.
Investment fraud can mean anything from highly technical manipulations to more subtle scams such as pyramid schemes, unregistered securities, or price manipulation.
It’s worth pointing out that the government has employed lawyers who work for several government-backed agencies.
These lawyers are tasked with keeping a watchful eye on the financial markets and holding to account those who break the law. However, their priority lies in serving the general American public and not personal interests such as investment recovery.
For that, you need an investment fraud lawyer working in the private sector to represent you if you were defrauded by a person or business that owed you a lot better.
That said, let’s walk you through five case scenarios where an investment fraud lawyer could prove more than useful.
1. When You Lost Money Because of Bad Advice
If you lost a serious amount of money because a broker, securities firm, or financial advisor gave you bad advice, there’s no need to despair. You can still recoup your money with the help of an investment fraud lawyer.
An investment fraud lawyer can help you prove that you were misled and that your investment funds were mismanaged unlawfully. The lawyer will analyze your case with intricate detail and identify where the fraudulent activity happened.
Whether you have invested in commodities, mutual funds, bonds, or any other kind of securities, you must speak with an investment fraud lawyer. Without their experience or expertise, it is going to be virtually impossible for you to recover your lost investment.
2. Elderly Financial Fraud
When adults become older, they get more and more isolated hence why elderly financial fraud is perhaps the most common of elder abuse today.
It is defined as the unlawful use of financial assets owned by an elderly person where the perpetrator compels an elder to use their financial assets in a way that only benefits the perpetrator or authorises consent to allow the perpetrator control of the elderly’s funds.
Unfortunately, fraudsters target the elderly because they usually have investments, savings, and pension funds. That’s why an investment fraud lawyer is so invaluable in such cases.
The lawyer can help identify signs of elderly financial fraud before the fraudsters make away with the money as well as help the elderly recoup their money. Alternatively, an investment fraud lawyer can also discuss future plans with the elderly regarding their money by helping them draft a will to direct what happens to their money after they’re gone.
3. Beneficiary Abuse and Exploitation
If you happen to be a beneficiary of a trust or will but are not receiving your inheritance, then you need to get in touch with an investment fraud lawyer to help you.
The acting fiduciary is legally obligated to act in your best interests, regardless of what personal feelings or opinions they might have. However, this doesn’t stop executors and trustees from violating their duties.
It could be intentional or personal ignorance of their duties but nevertheless, you need an investment fraud lawyer to help you go after the fiduciary who is not honoring their obligations to you as a beneficiary.
4. Lose Money From a Ponzi Scheme
Although a lot of people are familiar with ponzi schemes and that they are a form of investment fraud, not many understand how they work. It is precisely why so many of them lose money through ponzi schemes.
Ponzi schemes are often very complex investment fraud cases, and investors rarely realize they are part of the scheme at all until the operator runs off with their money or is charged with securities fraud.
As a ponzi scheme victim, you will need legal representation. As much as securities regulators and law enforcement agencies play a big part in helping ponzi scheme victims get justice, none of them will prioritize the victims getting back the money they’ve lost.
5. Market Manipulation Fraud
Market manipulation can be understood to be the artificial raising or lowering of commodity or stock prices. For instance, a company’s stocks can be pushed higher or lower through techniques such as false rumors or giving inaccurate information to reporters.
Government authorities consider market manipulation to be a very serious offense. Therefore, if you know, or even suspect, that you made a poor investment decision as a result of market manipulation, you need to hire an investment fraud attorney to help you file a legal claim if you want to try and recoup your money.
The Bottom Line
As you can see, investment fraud exists in a wide range of different forms. If you have been the victim of negligence or fraud, you must consult with an investment fraud attorney who can review the circumstances of your case in detail.
All in all, it’s only natural to be reluctant about spending more money if you’ve lost a lot of it already to investment fraud. But if you want to hold the fraudsters responsible or even possibly receive compensation for your losses, an investment fraud lawyer might be just what you need.
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