New York Investment Fraud Lawyer

New York Investment Fraud Attorney

When you decide to put your trust in a financial advisor or stockbroker, you are putting your financial security in their hands. You are putting your faith in their ability to provide you with a significant return in an ethical way. Regrettably, that doesn’t always happen. Sometimes, your broker may totally mismanage your investment, lie about growth, or even commit outright fraud. If this happens to you, you should reach out to a New York investment fraud lawyer for help.

When you find out that your investment is gone or, worse, is at the center of fraudulent activity, there are steps you should take to not only try to recover that investment but to hold the broker responsible for their actions. The legal team at Rosenberger + Kawabata can provide you with peace of mind that your case is being handled by the right people. We can help you discover the truth of what happened to your investment.

What Is Investment Fraud?

Investment fraud, also known as securities fraud, occurs when a registered financial advisor, such as a stockbroker or even an entire brokerage firm, engages in gross misconduct or reckless behavior with an investor’s money without their knowledge or consent. This misconduct often leads to the loss of the initial investment through illegal activity. If discovered, the broker can face criminal penalties on top of civil liability claims. A good lawyer can help you decide.

Different Warning Signs of Investment Fraud

It may not be immediately obvious that your broker is fraudulent and looking to scam you out of your money. However, there are many different potential signs that you can look out for that could point to a scam. Recognizing these signs can help you avoid a serious financial mistake before it begins. Otherwise, you’ll need an investment loss attorney. Here are some possible warning signs of investment fraud that you should watch out for when you are looking to invest:

• High-Pressure Tactics: When it comes to a sales pitch, the higher the urgency, the higher the likelihood that you are being taken for a ride. You should never be pressured into making a quick purchase at a seemingly low price. You may even be told that you could triple your investment, but only if you invest right away. The last thing scammers want you to have is time to think about what you are doing.
• Big Promises: Another important tactic to watch out for is the guarantee of an exorbitant return on your investment. If something sounds too good to be true, there’s a strong chance that it probably is. If someone is promising you that they can multiply the profits of your investment quickly without a sound business model or any further explanation, it’s most likely a get-rich-quick scheme.
• Evasive Answers: Typically, brokers seeking to take your money and invest it fraudulently are not going to have any real answers for you when it comes to how they are going to make you money. They don’t want to answer your questions because they can’t. They may respond to your questions with questions of their own. Don’t trust a broker who cannot answer simple questions about your own investment.
• Inside Information: One common trick that fraudulent brokers and con artists will use to try to lure you into a shady situation is claiming that they have inside information or a hot tip that no one else is aware of, and they are here to pass this incredible opportunity on to you. Never invest your money on the promise of some rumored tip that has no basis. You may never see that money again.

FAQs About Investment Fraud Law in New York

Can You Take Legal Action Against Someone for Investment Fraud?

Yes, you can take legal action against someone for engaging in investment fraud in New York. You may only succeed in your case if you have a significant amount of evidence against the responsible party and a very strong case against them. If you and an investment fraud lawyer can prove that you were conned into investing your money based on a false promise, you may be able to seek reimbursement for damages.

What Can You Do If You Are a Victim of Investment Fraud?

There are many things you can do if you discover you are a victim of investment fraud. First and foremost, you should stop paying any more money to the fraudster. Gather every relevant document you can find that demonstrates how much money you have lost and who you gave it to. Then, you should report the fraud to the Securities and Exchange Commission (SEC) and contact an investment fraud lawyer to start building a case for financial recovery.

What Are the Most Common Types of Investment Fraud Schemes?

Some common types of schemes include:

• Ponzi Schemes: A scam where investors are repaid by the funds given by newer investors. It’s built on a lie, and no one ever sees their money back.
• Pyramid Schemes: A pyramid scheme includes a team of investors recruiting more investors to work for them. Investors pay money for products that they recruit people to sell for them.
• Internet Schemes: The internet is full of potential scams looking for vulnerable investors.

What Is the New York Securities Fraud Law?

The New York securities fraud law is known as the Martin Act. It grants the attorney general the power to investigate and prosecute any fraudulent activity related to the sale or purchase of securities and to seek criminal or civil action against the fraudsters. Through this act, the attorney general can ensure those who seek to commit investment fraud are held accountable.

Reach Out to an Investment Fraud Lawyer Today

When you invest your money, you expect your financial security to be treated with respect. When someone defrauds you and manipulates your investment for their own gain, it’s understandable to want justice. At Rosenberger + Kawabata, we can help you build a substantial case against the person who took advantage of you. Contact us to speak to someone on our team about how we can help your case.