How to Identify Securities Fraud

Most of our clients come to us after having lost a significant portion of their life savings to investment fraud.

After such a devastating loss, many investors wonder what they can do differently next time to avoid falling victim to securities fraud. Our firm has put together this guide to help educate the public about avoiding investment fraud, and to give investors a better chance of spotting investment fraud before having to experience the negative results of stockbroker fraud.

Unsolicited Offers

Many fraudsters solicit investors via unprompted means, including mass emails or Internet postings touting their fraudulent offerings. If you come across an offering in a mass email or online posting for which you are unable to find additional financial reports from third parties, the offering may be fraudulent.

Guaranteed Returns

Any offering made with guarantees of returns could be investment fraud. These promises could be either guarantees of high returns or guarantees of consistently scheduled returns. If an equity investment is promised to provide returns at a certain rate despite normal market fluctuations it could be a Ponzi scheme and you could have cause for concern.

Secretive Practices

If obtaining clear information about your investment is difficult, including investment contracts, account statements, proof of the investment’s registration, or proof of the seller’s security licensing, the seller may be attempting to conceal an improper scheme, such as a Ponzi scheme.

Pushy Salespeople

Brokers or advisors should not pressure you into making immediate decisions about your investments. High-pressure tactics can be used to perpetrate investment fraud. Even with legitimate investment opportunities, they are improper.

Account Discrepancies

The broker’s activity in your account may not be in keeping with your instructions, and unauthorized trades, missing funds may exist, as well as high risk investments. Discrepancies could be evidence of churning, selling away, negligence or other types of investment fraud.

Experience & Knowledge You Can Trust

When choosing a securities attorney, longstanding history and experience in the field is as important as being ahead of the curve. Goodman & Nekvasil is firmly grounded in both worlds, with our promise of good faith and trust built-in to how we do business. If you are interested in hiring Goodman & Nekvasil for your securities law claim, contact the firm today for a free consultation.

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