Security and Investment Fraud

Security and Investment Fraud Lawsuit and How a Kittanning Security and Investment Fraud Lawyer Can Help

Protecting Your Investments

When you entrust your money to a financial institution, you expect it to be safe and to grow steadily. Transparency is key; you deserve to know about your investments and their future. Sadly, some unethical stockbrokers and investment advisors exploit this trust, leading to significant financial losses. These losses can stem from poor advice, conflicts of interest, or outright fraud. If you or your loved ones have fallen victim to such deceitful practices, reaching out to an experienced Kittanning DUI lawyer is crucial.

At Logue Law Group, we bring years of experience in tackling investment and banking fraud cases. Our dedicated team of Kittanning criminal lawyers is committed to helping you recover your lost funds.

Different Types of Security and Investment Fraud

Investment Fraud

Investment fraud involves various types of broker misconduct, each capable of draining your savings and retirement income. Below are a few common examples:

Bond Frauds

Bonds, often considered safe investments for fixed-income investors, can be subject to fraudulent schemes. Companies and governments issue these debt instruments to raise capital. Despite their perceived safety, fraudulent activities can devastate your portfolio, as witnessed during the recession when many individuals faced financial ruin.

Breach of Fiduciary Duty

Brokers, acting as intermediaries between buyers and sellers, must prioritize clients’ interests. Whether they are real estate, commodity, security, insurance, or mortgage brokers, they have legal obligations to guide informed decisions. When brokers disregard their fiduciary duties, they engage in fraudulent conduct. If this happens to you, our Kittanning DUI lawyer can assist in recovering your losses.

Churning and Excessive Trading

Imagine a broker pushing excessive trading, endangering your account and finances. This fraudulent strategy is unacceptable and jeopardizes your well-being.

Failure to Supervise

Reputable investment Logue Law Groups must implement strict rules for supervising their registered financial advisors and brokers. These professionals should regularly review your portfolio, aligning trades with your objectives and risk tolerance. Negligence leading to losses indicates fraud.

Investment Fraud and Misconduct

With your hard-earned money at stake, trust in brokers is vital. Unfortunately, some prioritize their interests, leaving clients vulnerable to schemes like:

• Non-traded Real Estate Investment Trusts (REITs): Lack liquidity, tying up your funds.
• High-Risk Junk Bonds: Carry default risks, endangering your money.
• Ponzi Schemes: Promise high returns using new investors’ money, unsustainable and risky.
• Structured Notes: Attractive but involve complex terms and hidden risks.
• Unsuitable Variable Annuities: Retirees may be pressured into ill-fitting products.

Margin Trading

Unscrupulous advisors may suggest buying stocks with borrowed money, called margin trading. This high-risk strategy benefits brokers through hefty commissions, even without upfront customer investments. Failing to disclose risks can cause financial harm.

Omissions or Misrepresentation by the Broker

Brokers have a fiduciary duty to explain every investment aspect, including terms and risks. Failing to do so can constitute fraud if investors lose money due to negligence.

Overconcentration of Assets

Diversification mitigates risk and maximizes returns. Responsible brokers consider age, risk tolerance, and financial status when making decisions. Ignoring these factors and concentrating assets in limited investments can be fraudulent.

Preferred Securities

During market crises, preferred securities may behave like common stocks, lacking expected income. Unlike common stocks, they miss upward price appreciation and face potential declines, failing to generate value.

REIT Issues

Real Estate Investment Trusts (REITs) invest in real estate projects, distributing returns as dividends. Investing in REITs offers access to diverse properties. Broker negligence resulting in failed returns may warrant consulting a Kittanning DUI lawyer for monetary recovery.

Selling Away

Fraud occurs when brokers sell unapproved private securities. Both the organization and investor can hold brokers accountable.

Unauthorized Trading

Unauthorized trading involves brokers using non-discretionary accounts without permission. This fraud can also involve churning, generating higher commissions at the investor’s expense.

Variable Annuity Issues

Investment advisors present variable annuities as sound retirement plans, but they pose risks for elderly investors. High costs and penalties for premature liquidation create financial challenges.

Seek Help From a Kittanning Security and Investment Fraud Lawyer

At Logue Law Group, our skilled Kittanning criminal lawyers handle investment fraud cases with expertise and diligence, ensuring financial loss recovery. Contact us 844.PITT.DUI today for a  complimentary consultation.