It’s disappointing when you lose money in your investments due to typical market fluctuations. But losing your funds due to a corrupt financial advisor is an even worse feeling.
Our stock fraud lawyers in Florida at Viles & Beckman can help you build a solid case demonstrating the negligent brokerage or stock broker’s liability. Our security fraud lawyers can give you a free case evaluation in our Florida office.
What Is Broker Fraud?
Investment fraud has many alternative names, but overall it is a deceptive practice that attracts individuals to part with their money under false pretenses. This dishonest manipulation of trust can lead to devastating financial losses.
Recognizing the signs of investment fraud and taking swift legal action is essential to protect your assets and hold wrongdoers accountable. The most common tactics of stockbroker fraud include:
- Ponzi schemes: Stockbrokers promise high returns but use funds from new investors to pay earlier investors, creating a false appearance of profit until the scheme collapses.
- Pyramid schemes: Participants recruit new members to pay fees, with profits coming from recruitment rather than legitimate investments.
- Pump and dump: Parties inflate stock prices through false information, then sell their shares, leaving others with losses.
For a free legal consultation with a security fraud lawyer serving Florida, call (239) 334-3933
Which Way Should You Pursue Justice for Your Florida Investment Losses?
When you’re confronted with investment disputes, you need to make a choice between Financial Industry Regulatory Authority (FINRA)
arbitration and traditional court litigation. Our Florida broker fraud attorney delves into the differences between these approaches:
Process and Speed
In FINRA Arbitration, practicality takes priority. The arbitration process is structured for efficiency, often culminating in a resolution within months. In contrast, Court litigation can be lengthy and span years due to procedural intricacies and case backlogs.
Level of Experience
Within FINRA Arbitration, arbitrators are handpicked for their experience in securities and financial matters. This knowledge guarantees decisions are backed by people with financial dispute experience. On the other hand, going to court may involve a judge who lacks specific knowledge of securities law, potentially requiring additional efforts to educate the court about financial aspects.
Confidentiality of Your Information
Confidentiality is a core value of FINRA Arbitration, where proceedings typically remain confidential. Case details remain shielded from the public eye. Conversely, court cases occur in a public forum, exposing case details to the public.
Finality of Decisions in Each Method
FINRA Arbitration issues decisions that are binding and enforceable in court. Parties generally have limited avenues for appeal. On the flip side, court judgments can be subject to appeals, extending the legal process and possibly delaying the attainment of a final resolution.
Cost of Litigation vs. FINRA Arbitration
Considerations of cost lean in favor of FINRA Arbitration. While arbitration costs may vary, the speed of the process often offsets this, making it a more cost-effective choice. In contrast, going to court tends to incur higher expenses, encompassing legal representation fees, court filings, and, at times, expert witness fees.
Our Florida attorneys at Viles & Beckman can help determine which method is right for your case.
Florida Security Fraud Lawyer Near Me (239) 334-3933
Can a Florida Securities Fraud Lawyer Help With a FINRA Arbitration?
Having a lawyer by your side during FINRA arbitration can be highly beneficial. Here’s how an experienced investor fraud attorney can assist you throughout the process:
- Understanding the process: FINRA arbitration involves specific rules and procedures that may be unfamiliar to individuals without legal experience. A securities fraud attorney from our law firm that is well-versed in FINRA arbitration can explain the process, making sure you clearly understand what to expect.
- Strategizing your case: An attorney can assess your case, identifying strengths and potential challenges. We can help you develop a strategic approach to present your arguments effectively before the arbitration panel.
- Evidence preparation: Collecting and organizing evidence is essential for a successful arbitration case. A lawyer can assist in compiling documents, records, and communication histories that support your claims, bolstering the strength of your case.
- Negotiation skills: If settlement discussions arise during arbitration, your attorney can leverage their skills to advocate for your best interests and secure a favorable resolution.
How Common Is Security Fraud in Florida?
If this is your first time suffering investment losses, you may be curious about how common investment fraud is in Florida overall. While there aren’t exact statistics, quite a few cases cost thousands of Florida residents their investment savings.
In June 2023, the U.S. Securities and Exchange Commission uncovered a Ponzi scheme that affected 1,500 residents and resulted in a loss of $112 million. The scheme’s focus was that the perpetrator and Royal Bengal Logistics Inc., a trucking company, told investors that the funds would help increase the number of semi trucks to help transport goods. As a result, Royal Bengal Logistics Inc. made around $1 million per month.
According to the U.S. Department of Justice, another security fraud case occurred in the months before Feb. 2023, where a 72-year-old man from Palm City lied to investors by telling them their investments would yield high returns. He created a fake company called Coin Deal and told investors that rich buyers would buy it out, which would result in money for them. This Ponzi scheme ended up causing 10,000 investors to lose a total of $55 million.
This shows that there is no shortage of securities fraud in Florida. If you’ve been a victim of a Ponzi scheme or any type of investment fraud, our team of Florida security fraud lawyers can help you.
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Contact Us to Get Justice for Your Florida Investment Fraud Case Today
At Viles & Beckman, we’re no strangers to dealing with negligent financial advisors and people that choose to deceive others in collaboration with them. When you work with our security law firm’s team of Florida broker fraud lawyers, you can feel confident that you’ll recover your funds.
Contact us today for a free consultation.