Security and Investment Fraud

Security and Investment Fraud Lawsuits and How a New Castle Criminal Lawyer Can Help

When you entrust your hard-earned money to a financial institution, you rightfully expect both its security and growth. Transparency is key, as you deserve to have all the details about your investments at your fingertips. Unfortunately, some unethical stockbrokers and investment advisors exploit this trust, leading to devastating financial setbacks. Factors such as unsuitable financial advice, conflicts of interest, and outright fraud can contribute to these losses. If you or a loved one has fallen victim to investment or security fraud, seeking the assistance of a skilled criminal lawyer can make a significant difference.

At Logue Law Group, we bring years of experience and expertise to handling cases involving investment and banking fraud. Our dedicated team of attorneys is committed to working tirelessly to recover the money you’ve lost.

Types of Security and Investment Fraud

Bond Fraud

Bonds, often portrayed as safe investments for fixed-income investors, are debt instruments used by companies and governments to raise capital. However, fraudulent schemes involving bonds can obliterate your entire investment portfolio. For example, during economic downturns, many fell victim to fraudulent bond schemes, leaving them financially devastated.

Breach of Fiduciary Duty

Brokers act as intermediaries between buyers and sellers, and they are obligated to act without personal interest, negotiating contracts solely in your best interest. This applies to all types of brokers, including real estate brokers, security brokers, insurance brokers, and mortgage brokers. When a broker neglects this legal duty, they enter the realm of fraud. If you’ve suffered losses because of this, a New Castle criminal lawyer can help you recover your investments.

Churning and Excessive Trading

Does your broker push you toward excessive trading? Churning is a deceptive practice where brokers engage in unnecessary trades to generate higher commissions. This tactic can be devastating to your financial security and health. Such actions should never go unchallenged.

Failure to Supervise Investments

Reputable investment groups must implement strict rules to oversee their financial advisors and brokers. This includes regular reviews of your portfolio to ensure trades align with your objectives and risk tolerance. If you’ve experienced losses due to your broker’s negligence, it constitutes fraud. That’s why you need to seek help from a New Castle DUI attorney for the best assistance.

Investment Fraud and Misconduct

It’s essential that your broker prioritizes your financial interests. Sadly, some brokers put their personal gain first, causing you to lose money in fraudulent schemes, such as the following examples:

• Non-traded real estate investment trusts (REITs): These investments frequently lack liquidity, tying up your funds for extended periods.
• High-risk junk bonds: Bonds with significant risk often come with a high chance of default.
• Ponzi schemes: These illegal schemes promise sky-high returns but rely on funds from new investors to pay older ones, creating an unsustainable cycle.
• Structured notes: Seemingly attractive, these hybrid securities often entail complex terms and hidden risks.
• Unsuitable variable annuities: Retired or elderly investors may be pressured into purchasing these products, which typically do not align with their financial goals.

Margin Trading

When financial advisors suggest purchasing stocks with borrowed money, known as margin trading, they may fail to properly disclose the accompanying risks. This can lead to significant financial harm while increasing commissions for the broker.

Omissions or Misrepresentations by Brokers

Your financial broker has a fiduciary duty to explain every aspect of your investment, from the terms and clauses to the associated risks. If they fail to disclose this critical information, it could result in fraud, leaving you with losses that should have been avoidable.

Overconcentration of Assets

Diversification is vital when managing risk and maximizing returns. Factors such as age, financial status, and risk tolerance must be considered. When brokers ignore these elements and concentrate investments in a limited number of avenues, this negligence can border on fraud.

Preferred Securities

Though initially appearing to behave like bonds, preferred securities often act more like common stocks during market crises. This means they may not yield the stability or income investors expect.

Real Estate Investment Trust (REIT) Issues

A Real Estate Investment Trust (REIT) offers investors a way to access real estate portfolios with annual returns distributed as dividends. When negligence by your broker leads to failed returns on a REIT investment, a New Castle DUI attorney may help you seek monetary recovery.

Selling Away

If brokers sell unapproved private securities or solicit the sale of such investments, both the organization and the broker may be held accountable for fraud.

Unauthorized Trading

Unauthorized trading involves brokers using a non-discretionary investment account without the investor’s explicit permission. This often coincides with churning, which is designed to inflate broker commissions at the expense of the client.

Variable Annuity Issues

While financial advisors may present variable annuities as good retirement plans, they come with high annual fees (exceeding 3%) and hefty penalties for early liquidation. This makes them unsuitable for elderly or high-risk-averse investors. And the best way to do that is to hire a New Castle criminal lawyer right away.

Seek Help From a New Castle Criminal Lawyer

When it comes to investment fraud, having the right legal guidance is crucial. At Logue Law Group, our experienced New Castle criminal lawyers have the expertise and diligence to help you recover your financial losses.

Contact us 844.PITT.DUI today for a complimentary consultation and take the first step toward protecting your financial future!