Stock Fraud Category Archives — Page 6 of 7 — Securities Fraud Lawyers Blog Published by Securities Fraud Attorneys

Financial "Adviser Misconduct Exists at Unacceptably High Levels"

Published on: May 13, 2016 | by Savage Villoch Law, PLLC

To those familiar with the shenanigans we deal with on a daily basis in the financial industry, it comes as no surprise and as a refreshing breeze to read Senators Warren and Cotton’s letter to the Chairman and CEO of FINRA, Richard Ketchum.

It is an open secret that many stock brokers and brokerage firms do not adhere to high standards of conduct when it comes to handling your hard-earned investment dollars. Yes, the large majority of financial professionals are doing their best and giving investment advice that is related to their clients’ investment objectives and risk tolerance. But that is little comfort to the significant minority of investors who have lost all or a portion of their retirement funds at the hands of brokers and brokerage firms that are not paying attention and are negligent (or worse) with their financial investment advice.

As the senators point out, FINRA professes to the public that they work “every day to ensure that…every investor receives the basic protections they deserve.” Importantly, based on the statistics, FINRA could be doing a better job to protect your investment assets. The report cited in Senators Warren and Cotton’s letter (see link below) to FINRA shows that “one in thirteen financial advisers have a misconduct-related disclosure on their record.” One in thirteen out of the roughly of the 641,000 brokers that FINRA says are registered with them have misconduct disclosures on their public records. The misconduct ranges from those charged with bribery, forgery, extortion, or fraud, or who were fired or ‘permitted to resign’ based on allegations of fraud or investment law violations.

Seven Reasons You May Need a Stock Fraud Attorney

Published on: March 19, 2016 | by Savage Villoch Law, PLLC

investment and bankruptcy lawyers serving tampa When you have a stockbroker handle your investments, you expect that this person won’t violate legal and ethical standards. But sadly, this isn’t always the case, and below are several reasons you may need to hire a stock fraud attorney.

Misrepresentation or Omissions

In order to know when to buy or sell an investment, clients need enough information from their broker in order to make a sound decision. However, some brokers fail to reveal important facts or they make false claims such as “I have an inside tip.” Brokers can potentially be held liable if clients make poor investments based on misrepresentation or omissions.

How do you know when you need a stock fraud lawyer?

Published on: January 30, 2016 | by Savage Villoch Law, PLLC

investment and bankruptcy lawyers serving tampa If you have been the victim of broker misconduct, you may be wondering if you need a stock fraud lawyer.

Here are just a few things that indicate that you need to obtain the services of an experienced stock fraud lawyer:

Your broker was involved in bond fraud & misconduct. If your broker did not make you aware of any of the inherent risks associated with investing in the bonds, you will need to engage the services of a professional stock fraud attorney.

What will a stock fraud attorney do for you?

Published on: January 23, 2016 | by Savage Villoch Law, PLLC

investment and bankruptcy lawyers serving tampa If you’ve been the victim of stock fraud, you will definitely need the services of an experienced stock fraud attorney who will handle your case. But, you may be wondering, what will a stock fraud attorney do for you?

In an attempt to make this process go a little bit easier for you — even though, certainly, the process itself is far from easy — here’s a short list of responsibilities that stock fraud attorneys will undertake on your behalf:

A stock fraud attorney will help you understand the finer points of stock fraud. For example, an experienced attorney in this field will be able to explain to you the various types of investment stock fraud, such as churning (excessive trading in the hopes of obtaining financial gain), fraudulent account documentation, and due diligence failure.

Florida Stock Broker Fraud Attorneys Look After Your Best Interests!

Published on: January 2, 2016 | by Savage Villoch Law, PLLC

Florida stock broker fraud attorneys well understand the underpinnings of the 2012 case of the U.S. Securities and Exchange Commission(SEC) versus First Resource Group, LLC, in which company principal David H. Stern was “charged with 3 counts of fraud.” The crime of fraud, in general, consists of deliberate misrepresentations–or omissions–of facts in order to profit, often at the expense of others.

In this case–Mr. Stern, of Florida, set himself up in 2008 as a stockbroker when, in reality, his company had never been “registered with the SEC.” He sold stocks using “instruments of interstate commerce and the U.S. mail to knowingly and recklessly employ devices, schemes, or artifices to defraud investors.” David Stern’s “devices and schemes” played out as follows:

Signing a contract with 2 companies to “solicit investors” for their stock, Stern sought to aid TrinityCare Senior Living, Inc., which built and managed senior-care housing and Cytta Corp., which composed medical data software. He was given 150,000 shares of TrinityCare and 200,000 shares of Cytta for his trouble.

A Florida Stock Fraud Lawyer Helps Victims of Underhanded Stock Promotions

Published on: December 11, 2015 | by Savage Villoch Law, PLLC

A Florida stock fraud lawyer is adept at aiding victims of what the U.S. Securities and Exchange Commission (SEC) calls–in its investor alert bulletins–“fraudulent stock promotions.” The SEC’s Office of Education and Advocacy recently issued a warning about “fraudsters who promote a stock to drive up the price, and then sell their own shares at the inflated price.” Therefore, these scam artists profit, but investors lose money. Explains the SEC, “promoters are often paid…or company insiders” who are experts at “creating buying frenzies” of stocks which may actually be worth little.

A Florida stock fraud lawyer–as well as the SEC–know that these charlatans promote stocks through what appear to be “unbiased sources,” such as “Social Media”–where they can hide their true identities, or “Investment Newsletters”–through which they pay publishers to tout stocks for them.

Having compensated third parties to collect the e-mail addresses of wealthy, older investors who reside in certain upscale areas, these fraudsters continue to shell out for “online ads” in the forms of “pop ups” or “banners.” Even though these ads represent scams, their masterminds find ways to troll them across accredited “financial pages of news organizations.”

Do you need a Florida investment fraud attorney? Contact us today!

Published on: December 4, 2015 | by Savage Villoch Law, PLLC

Even the most careful and diligent investors can get stuck in an investment fraud scheme without an investment fraud attorney. Florida residents who have been victimized by an investment fraud scheme (i.e., a Ponzi scheme, stock portfolio loss, negligence on the part of your stockbroker or financial adviser) will need a Florida investment fraud attorney, and we at the Savage law firm are here to help.

While it can be distressing to learn that you have lost thousands — if not hundreds of thousands — of dollars as a result of an investment fraud scheme, it should serve as some comfort to know that both state and federal laws protect you, the investor, from negligent, unsuitable, or otherwise illegal behavior by your investment advisers and/or stockbrokers; should you be a victim of such predatory behavior, these same laws also provide that you, the investor, can seek financial remedies against those same financial advisers and stockbrokers.

Of course, it’s never as easy as just asking for your money back, and getting it. The actual process of obtaining restitution for your losses can be a costly legal battle that requires an understanding of complex state and federal laws that most laypeople (i.e., non-lawyers) simply do not have. This is why the assistance of an investment fraud attorney is invaluable.

Lost Your Life Savings? Find Out if A Florida Stock Market Fraud Attorney Can Help

Published on: November 27, 2015 | by Savage Villoch Law, PLLC

Most people rely on a financial planner for advice on how to invest their savings. They place their trust and their future in the hands of people they believe are experts. It’s assumed that the financial planner will look at the age, income, savings amount, financial needs, and individual goals of their client to determine the best possible investment strategy with a favorable outlook for the client. Unfortunately, this is not always the case. A Florida stock market fraud attorney explains what constitutes stockbroker fraud and your legal rights.

Stockbrokers and financial planners are legally bound to exercise due care in dealing with their clients investments. If a broker fails to uphold that duty, the broker may be charged with professional negligence and stock fraud.

Some examples of fraudulent stock practices include:

Stock fraud lawyer warns: retirees and snowbirds often targeted by securities fraudsters

Published on: November 13, 2015 | by Savage Villoch Law, PLLC

For many retirees, the idea of spending their leisure years in Florida is a goal for which they have striven for many years. According to U.S. News & World Report’s analysis of 2010 U.S. Census Bureau data, the “Sunshine State” has the greatest proportion of people who are at least 65 (17.3%). And that doesn’t necessarily include “snowbirds” who might spend a considerable amount of the winter months in Florida away from their normal array of trusted advisers such as lawyers, investment advisers and other financial professionals who remain behind in the snow.

Whether they are new residents or snowbirds, and like many other Americans, some of Florida’s newest senior citizens probably are hoping to make some new investments to help them recover ground lost during the difficult economic times of the last five years, and that makes them extra-vulnerable to securities fraud schemes targeting the elderly. One such scheme involving the stock of two companies, Miami Beach-based Thought Development Inc. and Virgin Gaming, just resulted in two Boca Raton men being among eight defendants being charged in federal court with conspiracy to commit federal mail and wire fraud.

PalmBeachCoast.com recently reported that Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in charge of the FBI’s Miami field office are prosecuting the Boca Raton pair on charges based on what Ferrer described as “exorbitant, undisclosed commissions” and misrepresentation of the technology involved, which allegedly projected a green laser line on a football field visible in the stadium to players and fans as well as to television viewers. Ferrer and Piro also took the position that the promoters also failed to mention a pretty significant defect, which was that use of the technology posed a risk of blindness to the players.

Florida Investment Fraud Attorney On Ponzi and Pyramid Schemes

Published on: November 6, 2015 | by Savage Villoch Law, PLLC

Some people in Florida and other states try to scam others out of their money instead of making an honest income. Two tricks these con artists use are called Ponzi and pyramid schemes. Knowing how these methods of deception work can help you protect your money, but a Florida investment fraud attorney could help if you have already fallen victim to one of these schemes.

Ponzi Scheme

In a Ponzi scheme, someone lures others in by telling them about a supposed investment opportunity with little risk that yields a high reward. This sounds too good to be true because it is as these schemes are funded by paying existing investors with the money from new investors. This scam looks like it works because the earlier investors get paid, but the revenue dries up if there are no new investors or too many investors want to collect their money at the same time.