Nowadays, securities fraud or investment fraud, such as breach of fiduciary duty, is quite common. Both the investors and brokerage firms can benefit from the services of experienced securities fraud lawyers. Also, people who work in the securities industry, for instance, often find themselves in almost unintentional long terms of employment due to certain incentives. Such terms of employment can lead to industrial disputes and legal action. Essentially, brokerage firms in the securities sector often offer financial advisors huge bonuses and other benefits to encourage them to switch their place of employment.

Such lump sum, up-front payments often come in the form of promissory notes, also referred to as Employee Forgivable Loans. They usually require the financial advisor to stay employed by the brokerage firm for a prescribed period. If the financial advisor does so, the brokerage firm forgives his/her loan. All he/she needs to do is pay the taxes. If the financial advisor chooses to leave the brokerage firm before the agreed-upon period, he/she will need to repay part or all of the loan to the brokerage firm.

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What Do Securities Attorneys or Investment Fraud Attorneys Do?

Experienced securities attorneys are necessary to secure positive outcomes for their clients. The attorneys at Oakes & Fosher are experts in the fine points of securities fraud. We are always ready to provide consultation, securities arbitration, or legal representation for investors in case of broker misconduct and clients. We fight for victims dealing with issues such as:

  • Breach of fiduciary duty
  • Securities fraud
  • Investment losses
  • Investment fraud
  • Ponzi schemes
  • Stockbroker fraud
  • Unauthorized trading
  • White collar crimes

In the battle to hold on to clients, brokerage firms and their employees sometimes resort to inappropriate tactics to smear financial advisors who decide to leave, leading to consequences that can impact careers. Think about the financial advisors who entice their victims to join a Ponzi scheme. Some of them use unauthorized trading practices. The last thing you want to be is a victim of a fake bonds fund, broker misconduct, or stockbroker fraud.

Investors should take a great interest in securities law. This is especially important given the stock market crash, financial scandals, and Ponzi schemes that gripped Wall Street and the securities industry over the past several years. They caused such massive investment losses, and many victims are stead dealing with those losses.

Given the extent of investment losses and harm that can result from securities fraud or investment fraud, securities attorneys are a significant resource for victims. A security lawyer or law firm specializes in complex securities laws and regulations, which often change, applying to financial investments. They can provide investment recommendations to you in person or to your loved one, in addition to helping recover any financial losses from investment fraud.

Signs of Investment Fraud or Breach of Fiduciary Duty

Fraudsters use sharp-looking securities and investment firms with trustworthy facades to instill some confidence in potential victims. They use professionally designed brochures, attractive receptionists, classy office spaces, and impressive websites to create an impression of legitimacy. Some of the warning signs to look out for include:

  • Promises that are too good to be true
  • Extreme pressure to invest
  • Unsolicited pitches from an investment firm or financial advisor
  • Unlicensed financial advisors
  • Being asked to wire money to a personal account or abroad, or to pay via gift or credit card
  • Pitches telling you everyone is buying a certain investment
  • “Risk-free” investments
  • Extremely aggressive marketing actions
  • Fake testimonials and credentials
  • First name, last name validation purposes
  • Promises of no investment loss

Financial Industry Regulatory Authority

Employee forgivable loans are a common source of legal action between brokerage firms and financial advisors. The financial industry regulatory authority, FINRA, plays a huge role in resolving securities fraud, which can sometimes lead to self-regulatory or regulatory investigations. Most of the funding FINRA gets comes from Wall Street, which appears to give the advantage to brokerage firms. Investors engaged in a dispute with their financial advisors, therefore, need to hire a securities fraud attorney.

What is an Investment Lawyer?

Financial investments involve some level of risk. People invest their money with the expectation of earning a profit in the future. It is important, however, to understand that there are as many risks of investing in an asset or item as there are rewards. The level of risk, in most cases, will depend on the type of investment you make. Common examples of financial investments include stocks, bonds, mutual funds, real estate, commodities, and retirement plans.

An investment lawyer or law firm deals with different types of commercial and personal investment activities, in addition to international investments. These investment fraud law firm pros work closely with their clients when selling, purchasing, and structuring investments. Their primary focus is to grow and protect their clients’ wealth. They also have a solid understanding of what businesses and people need to do to be compliant with their legal obligations.

Many legal issues can arise in connection with the investment service industry, which is where an investment fraud lawyer or law firm can come in handy. Generally, most legal issues in the investment industry come in one of three scenarios:

  • Violation of the law
  • A conflict between investors and their brokers, financial advisors, investment firm, etc.
  • Dispute over an investment

Common examples of issues that require the help of securities fraud attorneys include:

  • Breach of fiduciary duty
  • Ponzi scheme
  • Inability to access funds
  • Foreign investment disputes
  • Distribution of stocks and shares
  • Lack of proper disclosure to investors before a purchase

A financial investment lawyer can perform many legal tasks and provide a wide range of legal services. The specific tasks and services an investment loss attorney offers, however, will depend on his/her area of practice and experience.

Speak with Our Experienced Securities Arbitration Attorneys

The last thing you want to do as an investor is to lose your life savings. If you suffered financial losses due to any form of investment fraud or securities fraud, it’s crucial you contact an experienced securities arbitration law firm. We dedicate our entire law firm to helping investors across the United States. If you believe that your financial advisors or broker-dealers placed you in a highly unfavorable position, you may be able to get compensation. Contact Oakes & Fosher for a free case evaluation.

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