Have you been the victim on securities fraud in New York City? Are you looking for a fraud lawyer? Then read our guide for tips on finding the best attorney for you…
Unfortunately the lure of illicit profit obtained by fraud from someone else’s investment has made securities not so secure for many investors. A securities fraud attorney is frequently called upon to recoup as much as possible from the perpetrator of securities fraud on behalf of the victim of the fraud. Additionally, securities fraud is a serious enough offense to warrant both civil and criminal punishments.
Investments and securities are useful tools for people who wish to put some money away and watch it mature into a nest egg that can be of benefit to the investor or help out a family member in need. In simple terms the word “securities” applies to both stocks and bonds. A stock refers to a share, or percentage, in a company’s profits and assets. A bond refers to monies loaned to a company or issuer of a bond. It is understood that eventually bond monies will be fully repaid to the party who made the loan – typically with an agreed upon amount of interest.
Types of Fraud
Securities fraud typically involves an act by an individual or corporate entity that is intended to manipulate the participation of investors in a financial market through willful concealment, or distortion of information. Financial markets thrive on and react to various types information.
Securities and Exchange Commission regulations define the following activities as securities fraud:
• Trading using information that is not available to the general public. Also called insider trading.
• Intentionally keeping inaccurate books or presenting false information. Generally defined as accounting fraud.
• Promulgating misleading or untrue information about a company, or its securities, to investors or to the public. Often called misrepresentation.
The primary mission of the SEC is to bolster investor confidence by disseminating information on companies and securities to the public. Additionally it monitors the securities market and conducts investigation into indications of atypical market activity. The foundation on which the activities of the SEC rests is found in the Securities Act of 1933 and the Securities Exchange Act of 1934. The spirit of those statutes still governs how the SEC operates today.
Standards That the SEC Enforces
If one sells or exchanges securities one must conduct their business with integrity and fairness. Such business relationships are built upon trust. Any client or customer should be able to count on reliable information at all times.
Firms that offer investment services need to be forthcoming and utterly transparent regarding the ongoing status of their business and the investment products they are offering to the public. Any investor has the right to expect to be able to assess the information about such products or services accurately and to be able gauge the potential for loss or gain that such an investment product may pose.
Are You a Victim of Securities Fraud?
If you suspect that you have been defrauded by an investment broker or other individual who has violated your trust or SEC standards you should seriously consider employing the services of a securities fraud attorney. Ideally the services of a securities fraud lawyer will help you recoup as much as 66 percent of a bad investment and your securities fraud attorney will only collect a fee for their services after your funds have been recovered.