Well versed in FINRA and FTC regulations, the Business Trial Group attorneys have extensive experience helping clients recover losses sustained by securities fraud. Our contingency-fee model means that you’ll have our undivided attention every step of the way, without the burden of hourly fees. If we don’t lead your case to a successful resolution, you won’t pay anything.
Investments always pose a risk, but when deliberate fraud has occurred, we can help you recover your losses. Our attorneys have deep expertise in complex securities arbitration and broker misconduct disputes.
Many people rely on brokers to make informed choices about where and when to invest. Investment advisors are regulated by FINRA, the Financial Industry Regulatory Authority. This government agency investigates allegations of misconduct, negligence and fraud in the securities arena.
Any individual, business or investment fund can become the victim of fraud. When a broker or securities advisor misleads you through deceit or negligence and you suffer losses as a result, you have grounds to file a claim. Here are some of the most common fraud schemes that lead investors to file a lawsuit.
“When your investments and savings are on the line, you should choose a securities arbitration attorney with the requisite experience and securities industry knowledge needed to combat the brokerage firm’s ‘hired guns’.” – Attorney Evan Frederick
Ponzi schemes gained notoriety when the Bernie Madoff scandal made national headlines in 2008. This is a highly damaging type of securities fraud that affects investors around the country every year.
In a Ponzi scheme, a broker uses the funds of new investors to provide returns to older investors. Throughout this cycle, the broker is able to convince older investors that their investments are yielding high returns—even though the funds they receive aren’t coming from the investments themselves. The funds are coming from new, defrauded clients.
Many investors also face related pyramid schemes, where the Ponzi scheme is essentially repeated over and over again, fooling older investors by continually recruiting new ones.
Most Ponzi and pyramid schemes eventually unravel on their own, but the damage to investors can be immense. These schemes defraud Americans of billions of dollars per year.
Churning and Unauthorized Trading
Many investment brokers receive a substantial portion of their income from commissions. Commissions are earned with every trade or transaction made on behalf of the investor.
Churning is a type of fraud in which brokers engage in unnecessarily frequent trading on behalf of investors, with the sole purpose of earning higher commissions. Brokers should act in the best interest of the investor at all times; churning stands in clear violation of that principle.
Unauthorized transactions are trades made without the knowledge or permission of the investor. Brokers may execute unauthorized trades for the same reason that they would participate in churning schemes: to maximize their commissions. These transactions are prohibited under FINRA Rule 2010, which governs how trades can be enacted.
The FTC’s antitrust laws are designed to maintain a fair and free market so that businesses can compete on an even playing field and consumers are exposed to a wider variety of options. Here are two of the antitrust violations for which companies and individuals can be liable:
- Price fixing: This type of antitrust violation involves an agreement between at least two competitors. Instead of determining prices independently, the competitors pre-arrange prices that best benefit them financially. This can ultimately have a negative impact on consumers.
- Bid rigging: Bid rigging involves a similar scheme to price fixing. Essentially, competitors work together to pre-determine which firm will ultimately win a bid. In lawful bids, the winning firm should be determined organically.
Corporate Merger Reviews
Navigating corporate mergers is one of the most stressful experiences for businesses and their shareholders. There’s usually a lot at stake, so if you are a shareholder, it’s important to ensure that you have access to all the information to which you’re entitled.
The Business Trial Group represents shareholders of publicly traded corporations when they are denied access to a proposed merger, or when the activities of the merger deliberately disregard shareholder interests.
Why Hire a Business Trial Group Attorney?
In most cases, filing a claim as the victim of investor fraud will lead to arbitration rather than a courtroom trial. FINRA representatives and a judge ultimately determine the result of the claim. The arbitration process typically lasts a little over a year. For many clients it can result in the recovery of losses, or even additional restitution.
The attorneys at the Business Trial Group have the resources and expertise to help you navigate the arbitration process and recover your losses. The only fee we receive is a portion of your judgment or settlement in a successful outcome. If we don’t win your case, you don’t pay.
Contact us confidentially through our no-fee, no-obligation form to discuss your case with a Business Trial Group Attorney.