Security and Investment Fraud

Security and Investment Fraud Claims and How an Erie Criminal Lawyer Can Help

If you’re putting your hard-earned money into a financial institution, you trust it to be safe and grow steadily over time. Transparency is essential, as you deserve to fully understand the nature of your investments and their potential. Unfortunately, some dishonest stockbrokers and financial advisors abuse this trust, leaving investors with devastating losses. These losses often result from factors like unsuitable advice, conflicts of interest, or outright deception. If you or a loved one has been a victim of investment and security fraud, contacting a skilled Erie criminal lawyer should be your first step.

At Logue Law Group, we have years of experience dealing with security, investment, and even banking fraud cases. Our dedicated team of Erie DUI attorneys and criminal law experts is committed to helping you recover your financial losses.

Types of Security and Investment Fraud

Fraudulent practices in investments come in many forms, all of which have the potential to harm your financial standing. Below are some of the most common examples:

Bond Frauds

Bonds, often considered safe investments, are debt instruments used by corporations and governments to raise capital. Fraudulent schemes tied to bonds can result in massive losses, especially for fixed-income investors. During economic downturns, such fraudulent activities have left countless people in Erie County in financial distress.

Breach of Fiduciary Duty

A broker acts as a bridge between the buyer and the seller, helping negotiate contracts with no personal conflict of interest. Brokers such as real estate brokers, commodities brokers, and insurance brokers are legally bound to act in their clients’ best interests. However, when brokers disregard their duties, neglect responsibilities, or act dishonestly, they venture into fraudulent territory. If a breach of fiduciary duty has left you in financial trouble, an Erie criminal lawyer from Logue Law Group can assist in recovering your losses.

Churning and Excessive Trading

Churning occurs when a broker excessively and unnecessarily trades in a client’s account to generate commissions for themselves, often jeopardizing the investor’s financial health. This unethical behavior is a clear violation of the investor’s trust and one that shouldn’t be ignored.

Failure to Supervise

Investment groups in Erie County are obligated to set and enforce rules to supervise registered financial advisors and brokers. These groups must regularly oversee your portfolio to ensure that transactions match your objectives and risk tolerance. If a group fails to monitor its brokers and advisors, resulting in financial losses, it may be considered fraud.

Common Types of Investment Fraud and Misconduct

Fraudulent financial advisors sometimes focus solely on their personal gain, causing serious financial repercussions for their clients. These unethical practices include but are not limited to the following schemes:

• Non-traded Real Estate Investment Trusts (REITs) – Illiquid investments that may tie up your money far longer than anticipated.
• High-risk Junk Bonds – Investments with a substantial risk of default, exposing your funds to undue danger.
• Ponzi Schemes – Fraudulent setups where returns are paid using new investors’ funds, making them unsustainable.
• Structured Notes – Financial products involving hidden risks and complicated terms.
• Unsuitable Variable Annuities – Retirement plans that may particularly harm elderly investors when they don’t align with their financial conditions and objectives.

Margin Trading

Margin trading involves purchasing stocks with borrowed money, recommended by some unethical advisors as a high-risk strategy. By not fully highlighting the risks, these advisors prioritize earning hefty commissions over their clients’ financial security.

Omissions or Misrepresentation

Financial brokers have a fiduciary duty to correctly disclose all terms and risks associated with any investment. Any failure to do so, resulting in financial loss, is grounds for fraud claims.

Overconcentration of Assets

A responsible broker must diversify investments to minimize risk. When brokers fail to account for your age, risk tolerance, and financial status, overconcentration in a narrow portfolio of assets could lead directly to financial harm.

Preferred Securities

Preferred securities may fail to deliver their expected returns during market downturns. Similar to stocks, these securities are prone to price declines but without potential price increases. Investors often fail to see the anticipated value, especially when brokers don’t clearly explain these risks.

REIT Issues

Real Estate Investment Trusts (REITs) allow access to a diverse real estate portfolio, boasting annual returns distributed as dividends. However, negligence on the broker’s part can prevent you from achieving these promised returns. If your investment has gone awry, consult an Erie criminal lawyer from Logue Law Group to file a claim for recovery.

Selling Away

Selling away refers to brokers attempting to solicit or sell private securities to their clients that are not registered with their employer. This practice violates regulations and exposes the broker to legal responsibilities for fraudulent sales.

Unauthorized Trading

When a broker initiates transactions without proper permission in a non-discretionary account, it is deemed unauthorized trading. Such practices often accompany churning and are aimed at increasing commissions at the investor’s expense.

Variable Annuity Issues

Variable annuities may appear to be solid options for retirees but pose considerable risks. Hidden costs that exceed 3% annually and steep penalties upon early liquidation pose serious concerns for elderly investors.

Why You Need an Erie Criminal Lawyer for Investment Fraud

If you’ve experienced financial losses due to unauthorized actions, negligence, or outright fraud, you’ll need legal representation from a professional. At Logue Law Group, our expert Erie DUI attorneys and criminal attorneys take every step necessary to recover your lost funds.

Hire Logue Law Group to Protect Your Financial Future

Investment fraud can disrupt your financial stability. If you or a loved one has been a victim, contact Logue Law Group for a complimentary consultation. Our expert team makes it a priority to address client concerns with expertise, diligence, and compassion.

Don’t hesitate to 844.PITT.DUI to seek help. Your financial recovery begins with legal guidance. Reach out to Logue Law Group today!