Security and Investment Fraud

When you trust a financial institution with your hard-earned savings, you expect safety and growth. Transparency is non-negotiable; you deserve to know exactly what is happening with your investments. Sadly, dishonest brokers and advisors sometimes abuse this trust, leading to devastating financial consequences. Losses can stem from many causes, including bad advice, conflicts of interest, or outright fraud. If you or a loved one has suffered due to security or investment fraud, you need the help of a skilled legal professional.

At Mountaineer Law Group, we have years of expertise in banking and investment fraud cases. Our team is dedicated to fighting for your rights and working to recover your lost funds.

Different Types of Security and Investment Fraud

Investment fraud covers a wide range of misconduct by brokers that can drain your savings and retirement funds. Here are some common examples of how this happens:

Bond Frauds

Bonds are debts issued by companies or governments to raise money. Advisors often market these as safe options for those needing fixed income. However, scams can wipe out an entire portfolio. Even during economic downturns, many people have been devastated by these schemes, finding themselves in financial ruin. A Morgantown criminal lawyer can help assess if you have been a victim of such a scheme.

Breach of Fiduciary Duty

Brokers act as the bridge between buyers and sellers. They are supposed to negotiate contracts without letting personal interests get in the way. Whether they are in real estate, insurance, or securities, brokers have a legal duty to help clients make informed choices. When they ignore this duty, it crosses into fraud. If you have lost money because a broker failed their fiduciary responsibilities, our Morgantown DUI attorney and fraud team can help you seek recovery.

Churning and Excessive Trading

Imagine your broker constantly pushing you to trade stocks, risking your security account just to generate commissions. This practice, known as churning, harms your financial health and is a fraudulent activity you should not accept.

Failure to Supervise: Protecting Your Investments

Every legitimate investment group must have strict rules to supervise its advisors and brokers. These professionals are responsible for reviewing your portfolio to ensure trades match your goals and risk tolerance. If a group’s negligence leads to your loss, it is a clear case of fraud. Consulting a Morgantown criminal lawyer is a wise step if you suspect supervision failure.

Investment Fraud and Misconduct

You should be able to trust your broker implicitly with your money. Unfortunately, some prioritize their own gain, leaving clients with significant losses. This misconduct often leads to investors losing money in schemes like:

• Non-traded real estate investment trusts: These are hard to sell and can lock up your money for long periods.
• High-risk junk bonds: These carry a high risk of default, endangering your capital.
• Ponzi schemes: These scams promise high returns but pay existing investors with money from new ones, eventually collapsing.
• Structured notes: These complex products may look appealing but often hide significant risks.
• Unsuitable variable annuities: Retirees are sometimes pushed into buying these, even if they don’t fit their financial needs.

If you have been pushed into these schemes, a Morgantown DUI attorney from our group can review your legal options, as our expertise extends across various areas of law including fraud.

Margin Trading

A dishonest advisor might encourage you to buy stocks with borrowed money, a practice called margin trading. This is high-risk and generates big commissions for the broker, even if you don’t put up more cash upfront. If an advisor fails to warn you of the risks, leading to financial harm, they may be liable.

Omissions or Misrepresentation by the Broker

Brokers have a duty to explain every detail of an investment, including risks and terms. If they leave out crucial information or misrepresent the facts, and you lose money as a result, it constitutes fraud. A Morgantown criminal lawyer can help determine if omission played a part in your financial loss.

Overconcentration of Assets

Diversification is essential for managing risk. Good brokers look at your age, finances, and risk tolerance to build a balanced portfolio. If a broker ignores this and puts all your money into just a few investments, it may be considered fraud.

Preferred Securities

In a crisis, preferred securities might not provide the income you expect, acting more like common stocks. They often miss out on price increases but still suffer from drops in value. If they fail to deliver expected value due to misrepresentation, you may need legal help.

REIT Issues

Real Estate Investment Trusts (REITs) invest in real estate and are supposed to distribute 90% of returns to shareholders. They offer access to property portfolios but come with risks. If a broker’s negligence causes you to lose promised returns, contacting a Morgantown DUI attorney is necessary to file a claim for recovery in Pennsylvania.

Selling Away

When a broker sells securities that their group hasn’t approved, it is called “selling away.” This is fraud. Both the broker and their group can be held responsible for these unauthorized sales.

Unauthorized Trading

Unauthorized trading happens when a broker makes trades in a non-discretionary account without your permission. This is a common form of fraud, often linked to churning to generate commissions at your expense.

Variable Annuity Issues

Advisors often pitch variable annuities as great retirement plans, but they can be risky for older investors. High annual costs (sometimes over 3%) and steep penalties for early withdrawal can make them unsuitable. If you were sold an unsuitable annuity in Berks County or surrounding areas, our team can help.

Seek Help From a Morgantown Security and Investment Fraud Lawyer

At Mountaineer Law Group, our experienced Morgantown criminal lawyer team understands the complexities of investment fraud. We handle these cases with the diligence required to help you recover your financial losses. Contact us today at (304) 381-3656 for a complimentary consultation to discuss your situation.