Most losses in the stock market are due to market conditions and trends that have nothing to do with securities fraud. Stockbrokers cannot see into the future of the market. If your loses are the result of fraud, you have the right to sue.
What is brokerage fraud?
This form of fraud occurs when a stockbroker or brokerage firm offers investors biased, unfounded, or contradictory advice out of a conflict of interest. Many times conflicts of interest arise when a the investment firm holds a financial interest in the company. Advisors must disclose any conflict of interest matters prior to giving any advice.
What is corporate fraud?
Corporate fraud occurs when a company attempts to skew or conceal information in order to lead investors to think the company is more successful than it is. This could occur through shady accounting practices which conceal debts or loans. This is sometimes referred to as “cooking the books.” The recent fiasco with companies like Tyco and Worldcom and examples of corporate fraud.
I’ve been a victim of fraud. Can I get my money back?
During the last few years, investors have lost an astonishing $10.5 trillion in stock value from the market’s top to the recent bottom. Not all loses are due to fraud, however if fraud is involved victims can sue and receive financial settlements.
According to reports from the Federal Government, the public loses over $5 billion in stock frauds every year. Contact our stock fraud lawyers at Colling, Gilbert, Wright & Carter to get more information about filing an arbitration claim.