Sadly, many Americans lose their life savings due to fraudulent acts of brokers, brokerage firms, financial analysts, corporate executives, and corporations. Fortunately, if your investment losses resulted from the fraudulent practices of any of these parties, you can take legal action to recoup your losses. You may also be entitled to additional damages including interest and costs associated with litigation of your securities fraud claims.

After the stock market crash of 1929, which led to the Great Depression, important legislation was passed in reaction to rampant unethical securities trading practices. The two important pieces of law passed to regulate the securities industry were the Securities Act of 1933 and the Securities Exchange Act of 1934. Following huge corporate fraud scandals such as Enron in the early 2000's, further legislation was enacted to protect investors, including the Sarbanes-Oxley Act of 2002 and the Private Securities Litigation Reform Act.

Common Types of Securities Fraud Claims

The most common claims of securities fraud include:

• Breach of Fiduciary Duty A fiduciary duty is a legal or ethical relationship of trust and confidence between two or more parties, in which the fiduciary is legally obligated to act in the best interest of their client. A breach of fiduciary duty occurs when the fiduciary acts in a manner contrary to the interests of their client, sometimes to serve their own best interest. In the context of securities fraud, a breach of fiduciary duty may involve any of the following types of illegal acts.
  • Churning occurs when a salesman or broker excessively trades for an investment account to generate commission fees.
  • Misrepresentation or Omission of Information, which has influenced an investor's final decisions regarding their investments, is another common type of securities fraud.
  • Unauthorized Trading is defined by a broker making investment decisions that do not follow regulatory procedures for transactions.
  • Unsuitability is defined as deliberately placing an investor's funds in investments that are not appropriate for their overall investment goals.
• Fraud by deceiving the public regarding the financial status, outlook, or procedures of a corporation;
• Illegal market manipulation; and
• Insider trading, or using inside information to illegally purchase or sell securities for personal gain.

Contact an Experienced Attorney

If you or someone you know have been a victim of securities fraud, contact us immediately for a free no-obligation consultation. Our attorneys at the Pintas & Mullins Law Firm fight aggressively for individuals who lost their savings as a result of securities fraud.

Resource Links

U.S. Securities and Exchange Commission (SEC) Advice on Securities Fraud
Visit this page from the SEC's website for an FAQ on how the SEC handles investor complaints.

FINRA Investor Complaint Center
The Financial Industry Regulatory Authority, Inc (FINRA) is a private organization that has jurisdiction over most brokerage firms and their employees and associates. The organization regulates its members through rules governing their business conduct. Visit this webpage on FINRA's website to learn more about filing a complaint with the organization.