Security and Investment Fraud

Security and Investment Fraud Lawsuit and How Washington Security and Investment Fraud Lawyer Can Help

At Logue Law Group, our skilled Washington PA criminal lawyers are dedicated to assisting individuals who have fallen victim to deceitful stockbrokers and investment advisors. When entrusting your hard-earned money to a financial institution, you rightfully expect both safety and substantial growth. Unfortunately, some unscrupulous individuals take advantage of this trust, resulting in devastating financial losses.

We understand the importance of complete transparency and keeping you informed about your investments and their future. Whether it’s unsuitable financial advice, conflicts of interest, or outright fraud, numerous factors can contribute to such losses. When faced with a situation like this, seeking legal assistance is crucial.

Different Types of Security and Investment Fraud

With years of experience in handling cases related to investment and banking fraud, our team at Logue Law Group will tirelessly work to help you recover the money you’ve lost. Investment fraud comes in various forms, including bond frauds. Even during the recession, countless individuals fell victim to these scams, leaving them financially devastated.

Bond Frauds

Bonds serve as essential debt instruments utilized by companies and governments to raise capital from investors. While financial advisors and brokers often present these investments as secure options for fixed-income investors, fraudulent schemes can devastate your entire portfolio. Even during times of economic downturn, numerous individuals have fallen victim to these scams, enduring significant financial hardships.

Breach of Fiduciary Duty

Brokers act as crucial intermediaries, facilitating transactions between buyers and sellers with the utmost responsibility and impartiality. Whether it be real estate brokers, commodity brokers, security brokers, insurance brokers, or mortgage brokers, each is bound by legal obligations to guide parties towards well-informed decisions. However, when a broker neglects their fiduciary duties, crossing into fraudulent territory, you may find yourself in need of our Washington PA DUI lawyer to help recover your losses.

Churning and Excessive Trading

Imagine this scenario: your broker incessantly urges excessive trading in the stock market, placing your security account at risk and undermining your financial well-being. This practice in itself constitutes fraudulent behavior that should not be tolerated.

Failure to Supervise: Safeguarding Your Investments

Any reputable investment firm or organization has a duty to establish and uphold stringent rules and regulations for supervising their registered financial advisors and brokers. These brokers bear the responsibility of regularly monitoring your portfolio, ensuring that your trades align with your investment objectives and risk tolerance levels. If your broker’s negligence results in financial losses, it is a clear case of fraud.

Investment Fraud and Misconduct

When it comes to your finances, placing trust in your brokers is paramount. Unfortunately, some brokers prioritize self-interest, leaving clients vulnerable. This deceitful behavior often leads to investors losing their money through various schemes, including:

• Non-traded real estate investment trusts: Illiquid investments that tie up funds for extended periods.
• High-risk junk bonds: Investments with a considerable chance of default, putting your hard-earned money at risk.
• Ponzi schemes: Promising extravagant returns, these fraudulent operations rely on new investors’ money to pay off existing ones, creating an unsustainable cycle.
• Structured notes: Appearing attractive, these hybrid security products often conceal complex terms and hidden risks.
• Unsuitable variable annuities: Elderly or retired investors may face pressure to purchase these products, which may not align with their financial goals.

Margin Trading

One dubious tactic employed by fraudulent financial advisors is margin trading. This strategy allows brokers to generate substantial commissions without requiring upfront investments from their customers. Unfortunately, the risks associated with margin trading are often downplayed or omitted, leading to severe financial consequences.

Omissions or Misrepresentation

Financial brokers have a fiduciary duty to fully disclose all aspects of an investment, including terms, clauses, and potential risks. When brokers fail to provide this critical information, resulting in financial loss for investors, their actions can be considered fraud.

Overconcentration of Assets

Diversification is essential for managing risk and maximizing returns. Responsible brokers consider crucial factors such as age, risk tolerance, and financial status to make informed investment decisions. However, when brokers ignore these factors and concentrate assets in a limited number of investments, it raises concerns of fraudulent activity.

Preferred Securities

During market crises, preferred securities may exhibit behavior resembling that of common stocks, failing to deliver the expected income. Unlike common stocks, these securities often miss out on upward price appreciation while remaining vulnerable to potential declines. Ultimately, they may fail to generate the anticipated value.

REIT Issues

A Real Estate Investment Trust (REIT) is a company that ties its assets and investments to real estate projects, distributing 90% of returns as dividends to shareholders annually. Investing in a REIT offers access to a portfolio of properties that individual investors may not typically consider. However, if a broker’s negligence results in a failure to deliver promised returns, it may be imperative to consult a Washington security and investment fraud lawyer to pursue monetary recovery.

Selling Away

When a broker sells or solicits the sale of unapproved private securities, it constitutes fraud. Both the organization and the investor can hold the broker accountable for these actions.

Unauthorized Trading:

One prevalent form of investment fraud is unauthorized trading, where a broker uses a non-discretionary investment account without the proper permission of the investor. This type of fraudulent activity may also involve churning, a practice aimed at generating higher commissions for the broker at the expense of the investor.

Variable Annuity Issues

While investment advisors often tout variable annuities as a reliable retirement plan, they pose significant risks for elderly investors. These risks arise from high annual costs that can exceed 3% and substantial penalties imposed when the investor opts to liquidate the annuity prematurely.

Seek Help From Washington Security and Investment Fraud Lawyer

At Logue Law Group, our experienced Washington PA criminal lawyers understand the importance of handling investment fraud cases with utmost expertise and diligence, ensuring the recovery of financial losses. Contact us today for a complimentary consultation.