Securities Fraud
Texas Broker Fraud Lawyers – (210) 298-6666 - (800) 519-2800
Investment Broker Negligence, Misrepresentation or Excessive Trading
When we purchase stocks, we naturally assume that the information we are being furnished with is accurate. We trust that our financial advisors and stock brokers always have our best interests in mind. However, securities fraud is a deceptive practice that cheats a large number of investors out of their money each year, and dishonest brokers and advisors need to be held accountable for their actions.
Securities fraud, sometimes referred to as investment fraud, involves the purchase or sale of stocks and other securities under false pretense. That is, investors are led to believe that certain information, particularly information that would make a stock or other security look appealing as an investment choice, is true when it isn’t. Often times, investors are told that a company is profitable when it is not, are guaranteed to benefit from profitable returns on their investment if they act quickly, and are provided with false financial records to deceive them into agreeing to the investment opportunity.
Securities fraud can take on a variety of forms, including:
- Insider trading, which involves the illegal use of financial documentation, that has not yet been released to the general public, to purchase stocks before an announcement is made which will cause the stock to go up in price
- Front running, which involves unscrupulous brokers and financial advisors selling and trading stocks or other securities using their own assets, but only after manipulating client assets and investments in those same stocks or securities in order to drive up the share value, creating a greater profit for the broker or financial advisor
- Embezzlement, which involves deceiving investors into believing that their money is being allocated as instructed when it’s actually being used by financial advisors or brokers for their own personal use
Securities fraud may benefit stock brokers and financial advisors, but it does so at the expense at unsuspecting investors. If you feel as though you’ve been a victim such deceptive practices, please don’t hesitate to contact the Texas securities fraud attorneys at Cichowski & Gonzalez, P.C. Call us today at 800-519-2800 for free initial consultation, and, our experienced financial fraud lawyers will fight to ensure that your rights are no longer infringed upon as a victim of financial fraud.