Victim of Financial Fraud?
Investment Fraud Attorney Investigating Securities and Financial Schemes
Manipulating financial markets by committing fraud poses a serious threat to investors. Those affected by this type of fraud could then experience devastating financial losses and depreciated business values. In addition, there is the expense of paying for any necessary investigative services.
Financial fraud comes in many different forms. The Federal Bureau of Investigation (FBI) stated that there is an increasing number of new, fraudulent types of financial misconduct developed each year.
Our commercial litigation attorneys know that the outcome for victims of investment fraud is always devastating. This is the case regardless of the type of scheme involved. Each investment fraud attorney at our firm has pursued individual claims as well as class action lawsuits for financial fraud cases.
What are Types of Financial Fraud Schemes?
Whether you are investing in a college savings plan, pension fund, retirement account, private company, financial institution or commodities, you may be at risk of suffering from financial fraud. According to the FBI, common securities and commodities schemes include:
- Investment FraudThis category of financial misconduct involves the sale or supposed sale of financial instruments. This means any type of tradable asset or contractual right to gain/give money. Typical investments that may be fraudulent often present would-be victims with low to no-risk investment opportunities, guarantee that the investor will gain returns that may be overly consistent, have complex strategies in their investment plans or have unregistered securities. Professional and private investors, hedge fund managers and others who you consult with about your investments could be perpetrating investment fraud. There are several types of investment fraud, such as:
- Ponzi Schemes
- Affinity Fraud
- Pyramid Schemes
- Prime Bank Investment Fraud
- Advance Fee Fraud
- Commodities Fraud
- Market ManipulationWhen the price of shares artificially inflates due to false or deceptive sales practices, investors may become victims of market manipulation. It may include releasing dishonest public information. This financial scheme is often referred to as “pump and dumps”. While those who perpetrate the fraud acquire illicit gains through this misconduct, shareholders suffer financial losses. This scheme occurs when scammers rapidly buy low-trading stocks, which makes the stock artificially gain value. Then, they quickly sell the investments back at the increased price. This ultimately hurts the other investors when the price plummets due to market manipulation.
- Broker EmbezzlementIf brokers directly steal from their clients by doctoring or forging documents, transferring or trading without authority to do so or breach their fiduciary responsibility, their clients may be the victims of broker embezzlement.
- Late-Day Trading
Financial fraud often involves the sale or purchase of securities after the regular trading market has closed for the day. These after-hour actions can allow traders to illegally benefit from the closing price of stocks as well as gain knowledge about upcoming market changes.
Find an Investment Fraud Attorney to Help You with Financial Fraud
The commercial litigation attorneys at the law firm of Colson Hicks Eidson represented a wide variety of clients, from Fortune 500 companies to minority shareholders, in legal actions against those responsible for fraudulent financial losses.
There is a marked difference between making a poor investment and being the victim of investment fraud. Do you think you or your company were the victims of one of the many types of securities and commodities fraud? Our law firm provides a confidential consultation to discuss your potential financial misconduct claim. Contact us today.