A fraud investment lawyer represents clients hurt by investment fraud and negligence or anyone who has suffered an investment loss. Fraud investment can cost someone his/her IRA savings, college fund for children, retirement money or even pension plan provided for employees. Under such trying circumstances, the investor suspects the financial advisor, stock broker, or insurance agent or someone who has made them invest the hard earned money. It is in this context that professional hand of an experienced legal representation becomes imperative for the investor.
While exploring such investment frauds, one can come across several reasons and factors that are responsible for turning investor dreams into nightmares:
- Questionable and suspicious practices by those involved in the sectors of investment, banking, brokerage and corporate arenas play a major role in causing investors to suffer economic pain.
- Corporations indulging in overly aggressive and fraudulent accounting practices are also a cause for such investment frauds.
- In a system where commission and financial gains thrive, some stockbrokers with conflicting allegiances recommend the investor to invest in stocks that they themselves feel are poor choices.
Once an investor has lost money due to fraud, there are two ways by which a fraud investment lawyer helps them recover their monies.
- Lawsuit or arbitration.
- Criminal prosecution.
In the US, there are several federal statutes available to fraud victims, depending on the type of fraud perpetrated.
Skills required of a fraud investment lawyer
- A fraud investment lawyer should be talented, aggressive and a professional in every way.
- A fraud investment lawyer should have strong legal capabilities. He/she should be well-versed in complex business transactions, financings and litigations, wide variety of business and securities matters. Legal matters should be handled with highest level of competence.
- The fraud investment lawyer should be a seasoned strategist and should be able to navigate around the negotiating table as well as the courtroom.
- A fraud investment lawyer should be able to provide prompt personal attention and impeccable legal services, capable of handling settlement negotiations, mediations, arbitrations and litigations. The lawyer should understand that his/her investor client is in distress and needs individualized attention and treatment. The fraud investment lawyer should appreciate that the client has spent many years earning and accumulating the money they have invested and should be dedicated to help them recover it.
- Experience is an extremely important factor in determining which fraud investment lawyer would be the most helpful in cases of claim or dispute. He/she should have sufficient practice that involves representing individuals and businesses who have suffered financial losses due to fraudulent investment schemes sold by unscrupulous or inept investment promoters, stockbrokers, investment advisors or insurance salesmen.
- The fraud investment lawyer should be a reliable and experienced securities litigation attorney. He/she should be able to provide professional stewardship and consideration for the client's finances and security of investment. Mismanagement, mishandling and misconduct on the part of these professionals tell significantly on the client's investment security. It can also destroy the clients' trust.
- A good investment fraud lawyer always works to learn the rules and regulations that govern the behavior of investment industry professionals. It is essential for an investment fraud lawyer to understand the industry and its representatives to enable determine the merits of the claim or dispute of the investor client.
- A fraud investment lawyer should have public service motto as an integral part of himself/ his firm. A fraud investment lawyer should take the onus onto himself/herself to educate the public and other lawyers about investment fraud, elder fraud and elder law.
Scope for a fraud investment lawyer
On many occasions, the investors do not notice the arbitration clause in their account forms and this clause has important ramifications. The limitation of available avenues of recourse open to the dissatisfied investor is not understood by the investor at the time of investment. It is only many months' later that they realize that they have been misguided.
Sometimes an arbitration process is set forth as this is quicker and less expensive than court action. Under all or any of the above circumstances, the services of a talented and aggressive legal professional become important for the common man to recover the losses.
Tips for the investor to protect against investment fraud
- Do not go by unsolicited financial advice. This is a simple method to gain the investor's confidence by which the advisor earns fees and commissions by investing the other person's money.
- Ensure that the firm/person is legitimate and confirm that the financial advisor is registered or of good standing.
- A stock broker or a brokerage firm can be liable to the investor if the investor has sustained losses in the stock market based upon investments that just were 'unsuitable recommendations'. It is imperative that the stock broker or other investment advisor is chosen after careful consideration.
- Sometimes an investment would sound 'too good to be true'. It probably is. There are several unscrupulous companies who try to entice investors with promises or returns as high as 50 or even 500 %.
- It is always advisable never to divulge personal financial information like credit card account or bank account numbers or balances over the telephone unless and until one is sure that the caller is not bogus but legitimate.
- Always insist and read the printed prospectus carefully before any investment is made.
- It is always sensible to consult ones' attorney, accountant or financial advisor to explain the terms of investment.
- Insist on receiving regular statement and monitor the activity in your account regularly.
- It is better to keep records relating to one's investment including notes of conversations one have had with brokers, salespersons, financial advisors and others.