Choosing to invest in securities can be difficult for novice investors. When a New York resident hopes to expand their portfolio or diversify through the acquisition of new securities, they must know what they are getting into so that they can minimize their risks of loss and financial trouble. Financial professionals can guide them toward secure investment options.
Unfortunately, not all individuals who purport to be knowledgeable in securities are trustworthy, and some engage in criminal practices to deprive their victims of their hard-earned money. When an individual suspects that they might be working with an unscrupulous person with regard to their investments, they may notice certain signs. This post will discuss some of those signs but no part of this post should be read as legal advice. All questions about securities fraud should be direct toward attorneys who represent victims in securities litigation claims.
Signs of fraud in securities dealings
One of the first signs of trouble that a victim may discover is unauthorized transactions on their securities accounts. They may see purchases or sales of securities that they did not authorize. They may see money move into our out of their account that they cannot trace. When a securities professional uses their client’s account without authorization, they may have broken the law.
Another sign that victims may notice when the are being taken advantage of is losses where there should be gains. For example, if the market is climbing and the securities a victim has invested in are increasing in value, their investments should also be increasing. If the victim’s investments are declining, they may need help to figure out why they are losing when the market is gaining.
Building a case for securities fraud or malfeasance
Once a person has identified possible signs of wrongdoing in the management of their securities investments, they may wish to take legal action to recoup their losses. They can start by finding a securities litigation attorney to advise them on their particular case needs and requirements.
There are several elements that victims of securities fraud must prove in order to prevail in court. They generally must show that false statements or misrepresentations, omissions or incomplete information were shared with them. They must show that the individual making those statements did so with knowledge that they were false or make them recklessly. They must also show that they as victims relied on those statements to their detriment.
This post provides general information. It is not to be read as legal guidance for case preparation. They best way for a victim of securities fraud to learn about their legal options is to work with an attorney who works in securities litigation.