California Investment Fraud Lawyer

Bad actors are pervasive in the financial industry, and as a result, many investors’ losses occur not because of downturns in the market or poor performance of the companies they invest in, but because of manipulation committed by financial advisors or advisory firms. A California investment fraud lawyer can represent investors who were injured by fraud, breaches of fiduciary duty, unsuitable investments, churning, and other financial wrongdoing.

Individuals invest in financial securities such as stocks in order to save for retirement or to achieve future goals. It is understandable to trust financial brokers, advisers, or other professionals with this money you have worked hard for so that your legacy might be built and protected. These investments can be complex, and these professionals should conduct themselves with your interest in mind.

Unfortunately, some individuals may be dishonest or operate in a way to defraud you and cause you to lose your monetary assets. The investment fraud attorneys from Rosenberger + Kawabata can help you discover the truth of the matter.

What Is Investment Fraud and What Are the Common Cases We Handle?

Investment fraud, otherwise known as securities fraud, is the phrase used to refer to the intentional misconduct or reckless behavior which can lead a trusted investor to make a transaction based on misleading information or false information regarding your potential investment. It can result in the loss of your money, as their behavior usually involves some kind of illegal or predatory practices.

This kind of fraud may be committed by many different kinds of providers offering financial services such as stockbrokers, brokerage firms, and even investment advisors. If you believe that you have been the victim of investment fraud, this could lead to criminal prosecution and civil liability claims against the individuals guilty of committing fraud.

Our office has recovered millions of dollars on behalf of clients. Contact us if you believe you have incurred investment losses as a result of wrongdoing by your financial advisor. Our securities fraud practice areas include:

• Suitability and Breach of Fiduciary Duty: When individuals hire broker-dealers or investment advisers, these parties owe certain duties to the investors who have hired them and their services. The law requires these parties to recommend the purchases or sales of securities only in cases where those transactions are appropriate for the goals of the individual investing.

  When an investment adviser engages in theft or other unethical practices such as failing to diversify, they may be held liable for a breach of fiduciary duty in litigation regarding securities and can be found in violation of certain state or federal laws.

• Failure to Diversify: In California, investment brokers are required to diversify a client’s portfolio. If they do not, they could be placing you at financial risk. In some cases, a broker might focus on securities that pay them higher forms of compensation. If your broker has too many investments that can be considered high-risk, it can make them liable for any losses that may occur.
• Failure to Supervise: Brokerage firms are required by law to supervise all the activities of their registered employees. These firms owe it to the individuals who placed trust in that firm for the health and safety of their investments to ensure that their employees are acting in the interests of their clients.

  When an employee of the brokerage firm violates the law by engaging in behaviors such as churning or excessive trading, and the firm fails to reasonably keep their employee from acting on this behavior, the firm may be held liable for the investor’s financial losses.

• Unauthorized Trading: This can occur when an investment advisor or broker-dealer, without the knowledge or written consent of the investor, makes sales, purchases, or otherwise exchanges securities in that client’s portfolio. This can cause investors to lose huge amounts of money and place them at financial risk. In these cases, you may be able to hold the financial professional accountable for your losses.
• Selling Away: It is illegal for an investment advisor or broker-dealer to be involved with the sales, purchase, or exchanges of securities that are not approved or actually offered by the firm. As it stands, a brokerage firm actually has a legal duty to prevent this kind of unethical and unlawful behavior, and if they have failed to do so, they can be held responsible for any financial losses you suffer.
• Churning (Excessive Trading): Churning is an illegal move made by a broker who takes part in any unnecessary or excessive trade in your account so that they can reap the benefits of higher commissions. Unfortunately, many brokers can come up with a reason that sounds professional for why this “strategy” is actually a good idea for your portfolio. However, you can hold them accountable for this action.
• Broker Theft: Broker theft can occur when your investment advisor or broker-dealer steals funds from your portfolio after coming into possession of your portfolio in a legal manner. This can happen by selling away, or the unauthorized sale of your assets, borrowing money or taking part in unauthorized trading of your assets or funds within your portfolio in order to gain higher commission payments.
• Real Estate Investment Trusts (REITs): REITs, is a security which can be traded like a stock but does not let investors sell shares or redeem these shares for a large amount only to then turn around and charge high fees. However, investment advisors or brokers usually receive high commissions for selling a non-traded REIT and, in many cases, can and will put their own financial interests above the interest of their clients.
• Private Placement Investments: In California, a private placement is a way for a company to sell its securities to a limited number of investors without having to go through a public offering. However, a broker or advisor can ignore these rules and sell you a risky private placement so that they can collect a large commission for themselves.
• Junk Bonds: A junk bond is a term used for corporate bonds issued by businesses or companies with poor credit, which can cause them to be a much higher risk when involved in your portfolio. This fraud can include companies who make inaccurate or inadequate disclosures or can involve fraud when junk bonds are purchased by bond funds.
• Ponzi Schemes: The term “Ponzi scheme” refers to any illegal behavior or conduct perpetrated by an investment advisor or broker-dealer that uses new investment money to pay earlier investors their distributions or dividends. This new money is usually attracted to the fund through misrepresentations regarding the amount of money available or via fraudulent promises.
• Elder Abuse: In some cases, older individuals can become targets for unethical investment practices if they have large investments or high-valued assets. This can happen, most specifically, in cases where an individual comes into a large sum of money through inheritance but has never before been in charge of familial finances. If a senior individual has been taken advantage of by their investment advisor or broker, a claim may be filed.
• Trading Restrictions: If a firm places a trading restriction on your ability to be involved in certain securities with the knowledge that this could negatively impact you and your investments and breach their good faith owed to you as their client, you may be able to file a claim against them with the assistance of the attorneys at Rosenberger + Kawabata.
• Best Execution: This rule requires that in any transaction of securities in a client’s portfolio, your broker or investment advisor must use reasonable diligence to ensure the correct market for the security is involved and to buy and sell in such a market will work out in your favor and financial interest.
• Boiler Rooms & Cold Calling: Small brokerage firms sometimes will call individuals, especially seniors, misrepresenting themselves, telling the individual receiving the call that they should make certain investments that are not actually in their financial interest. If this individual does make the investment, it can set off a series of losses that were solicited by the broker, and the broker can be held liable for their predatory behavior.
• Insurance Fraud: An insurance agent owes you certain duties when they are hired. Unfortunately, in some cases, these duties can be breached or ignored. If you have been sold more insurance than you actually need, you have the right to take legal action against your insurance agent and their agency, and it is important that you work closely with an attorney who can present a compelling case in your interest.

How the Attorneys from Rosenberger + Kawabata Can Help You

If you have experienced financial or investment loss while under the advice of a broker-dealer or investment advisor, the attorneys at Rosenberger + Kawabata can help. We have the resources and experience necessary to take the following actions in your case:

• Investigate any facts or circumstances involved in the case that may help uncover evidence of securities or investment fraud
• Calculate the financial value of your losses, such as the loss of value in your investment
• Determine which party or parties are liable for the losses you have suffered
• Explain to you your legal rights and avenues for a claim, including the pursuit of a formal complaint or filing a legal claim for compensation
• Fight for you to receive the maximum amount of compensation you deserve

Leading Signs You May Be the Victim of Investment Fraud

The financial market can be a volatile place, prone to change and upheaval, and so you might simply assume that the poor performance of your portfolio is due to this fact rather than the misconduct of your broker. However, there are certain signs of securities fraud you should be on the lookout for if your portfolio is performing exceptionally poorly. The most common signs of securities or investment fraud can include the following:

• Many of the investments your broker has recommended are losing money
• Your broker is being pushy or using techniques to pressure you to invest a large sum very quickly
• You find that you have investment statements missing or are seeing mistakes on the records you are sent
• There are many transactions on your investment records that you did not authorize
• Your broker refuses to answer your questions, pick up the phone, or becomes otherwise difficult to communicate with
• Your broker begins to recommend investments that do not align with your financial goals or anticipated risk
• You discover that there is money missing that cannot be accounted for, or your broker cannot explain the reasoning behind
• You see unexpected and large losses in your portfolio even when the market is performing well

If you have experienced any of these signs or behaviors, it’s time to contact the attorneys at Rosenberger + Kawabata, who can review the details of your investments and discover any suspicious behavior, misconduct, or fraud on the part of your investment advisor or broker-dealer.

What Is the Law for Securities Fraud in California?

In the state of California, the state attorney general has the ability to bring civil law enforcement actions against advisors or brokerage firms under the state’s securities and commodities laws. This can be done in order to protect investors from fraud, misconduct, or other unlawful practices. Violations can be investigated under law by the Securities Unit of the Corporate Fraud Section.

What Is the Sentence for Securities Fraud?

When an individual is found guilty of committing certain forms of securities fraud under state and federal law, they can face a wide range of severe penalties. These penalties can include substantial fines, lengthy jail time lasting years, probation, and, in some cases, having to pay restitution to their victims for the financial losses they caused.

What Is the Securities or Investment Fraud Statute of Limitations?

Under California law, an individual may bring forward a securities or investment fraud claim anywhere from one to five years after the crime has taken place, depending on the exact nature of the case. This time limit is called a “statute of limitations” and if the time passes before a claim is brought forward, the courts will most likely not hear the case.

How Much Can an Investment Fraud Attorney Charge?

It can be difficult to offer an exact number as to how much a securities or investment fraud attorney might charge for their services as each case is different, and the amount of finances involved can vary. Often, the same factors will impact these fees, including the complexity and duration of the case, the assets and financial value involved in the case, and the attorney’s own experience level.

Speak with a Trusted Investment Fraud Lawyer Today

If you believe that you or someone you love is the victim of investment or securities fraud in California or nationwide, the dedicated and trusted attorneys at Rosenberger + Kawabata can help. We believe that you do not deserve to be treated this way and your hard-earned money should be handled with care and respect. Allow us to support you during these uncertain times and hold the responsible parties accountable for their actions. Contact our offices today.