Securities fraud also known as stock fraud or investment fraud occurs when a stock broker or investment advisor encourages you to buy or sell investments under false, inaccurate, or exaggerated information. This false information isn’t always verbal. Sometimes, the false information can be found in the stock broker’s financial statements or in fraudulent reports sent to the federal Securities and Exchange Commission (SEC).
What is a Duty of Care and how does it apply to you?
Stock brokers owe a duty of care to all of their customers. This means they must disclose all important information regarding potential investment purchases. Stock brokers must get your written approval before buying or selling any stocks on your behalf, and the failure to do so is illegal.
Also, the entire investment firm owes you a duty of care to properly supervise its employees and to ensure that mismanagement of your funds is not occurring; the failure to do so is also illegal.
Possible warning signs of Securities Fraud
Determining whether or not your stock broker or investment advisor has committed fraud is difficult, but there are warning signs that you can look for. Some common warning signs include:
-You suddenly lose a large sum of money.
-Your broker refuses to return your phone calls.
-The market is up, but you are continuously losing money.
-Your financial results are very different from the publicly announced expectations.
Proving your Securities Fraud case
Every fraud case must be articulated very specifically or your case could be dismissed. To prove fraud, you must show that your stock broker or investment advisor intentionally made a false statement to you, that you relied on such statement, and then suffered a financial loss as a result. If you are successful, you may be able to recover the money you lost as a result of the fraud. It is important to understand that there are strict notice and time limitations in bringing a securities fraud suit, and having a knowledgeable attorney who knows the law is imperative.
For this reason, you should contact the Law Office of Barton W. Morris, Jr., for an immediate consultation to find out more about your Securities Fraud case. Barton W. Morris, Jr., is dedicated to researching and understanding the subtle nuances of a Fraud charge and takes an aggressive approach in pursuing each and every case.
If you believe you have been a victim of Securities Fraud in the Oakland, Wayne or Macomb County communities of Royal Oak, Bloomfield Hills, Detroit, Warren, Troy or any surrounding area and want the best legal representation, call Michigan Criminal Attorney Barton Morris at (248) 541-2600. Attorney Barton W. Morris, Jr., was recently voted Top Attorney in Metro Detroit for 2012 and 2013. Having conducted multiple dozens of jury trials gives Attorney Barton Morris, Jr., the experience necessary to effectively handle every criminal matter and persuade any jury that the specific elements of your case have been satisfied.