Securities Fraud Lawyers in Michigan
Are You a Victim of Securities Fraud in Royal Oak?
Securities fraud, also known as stock fraud or investment fraud, occurs when a stockbroker 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 & How Does It Apply to You?
Stockbrokers owe a duty of care to all of their customers. This means they must disclose all important information regarding potential investment purchases. Stockbrokers 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 stockbroker or investment advisor intentionally made a false statement to you, that you relied on such statement, and then you 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 securities fraud attorney in Michigan who knows the law is imperative.