Federal and state laws prohibit deceptive practices associated with the sale of a security. Most commonly, the deceptive practice at issue will involve a false statement by an investment professional or brokerage firm. It may relate to either a particular security or an investment practice. Securities fraud also includes other types of illegal conduct, including embezzlement, theft, stock manipulation, insider trading, false statement of financial reports to auditors, etc. The sale of high risk securities to unsophisticated investors who cannot afford the loss may also constitute securities fraud.
Securities fraud is a serious crime. For the victims of fraud, it is devastating. When securities fraud occurs, an experienced securities fraud lawyer will know how to analyze the case and how to obtain recovery. Often times a brokerage firm will try to avoid responsibility for the conduct of the investment professional in an attempt to avoid responsibility and leave the innocent investor stuck with the loss. An attorney with knowledge of this practice area can help the investor avoid this pitfall and establish a failure to supervise.
If you suspect you are the victim of securities fraud, you should seek help immediately.