Any investor could become a victim of securities fraud, including middle-class families who work with a financial advisor toward retirement or other financial goals. You don’t have to be a millionaire investor to fall prey. Securities fraud can happen to anyone.
Whether you’ve lost your life savings to someone you trusted or suffered a substantial loss related to misrepresented investments, you could have a legal case. Call Roberts Markland, LLP at (713) 630-0900 to discuss with an experienced securities fraud attorney about your case.
What is Securities Fraud?
Securities fraud is any method of lying about crucial information that is used by investors to make a decision about an investment. Take, for example, a stockbroker giving a potential investor fake information that makes a stock look more profitable than it is. The investor is more likely to invest based on this information. The stockbroker committed securities fraud by lying about the potential profit to be made off of that stock since the broker makes money off of those investments.
Securities fraud and all of its subtypes are defined by the Securities Exchange Act (1933 and 1934). There have been subsequent additions and additional laws like the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 that address new versions of securities fraud that may not have been explicitly covered, as well as providing updated legislation on securities fraud for the modern-day. The general idea behind these laws is that stockbrokers (and their counterparts in other fields) must provide accurate information and representations about investments. It is to protect investors from being fooled into making bad investments so that financial advisors can turn a profit. In essence, they have to provide good information about investments so that they profit from investors making good investments.