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7 Signs You Might Have a Claim for Investment Fraud

September 30, 2021 Blog

Investment fraud is a very real risk for individuals who invest on their own or through a broker or advisor. Fraudulent investment scams are common; and, unfortunately, many brokers and advisors put their own interests ahead of the interests of their clients. With this in mind, here are seven signs that you may need to contact a securities litigation law firm about filing a claim for investment fraud:

1. You Can’t Get the Information You Need

As an investor, you are entitled to receive all of the information you need in order to make informed decisions. You are also entitled to access information about your portfolio and your broker’s or advisor’s fees and commissions. If you can’t get the information you need to evaluate an investment or check up on your portfolio, this could be indicative of fraud.

2. Your Broker or Advisor Can’t Explain What Happened

Brokers and advisors should only recommend investments they understand, and they should only execute trades that serve their clients’ investment objectives. If your broker or advisor can’t (or won’t) explain why you have suffered investment losses, this could be indicative of fraud as well.

3. Your Losses Aren’t Consistent with Market Forces

While not all securities follow the market, over time, your portfolio should generally track to market trends. If your investment losses are often inconsistent with market forces (or if you have suffered a substantial loss that is inconsistent with the market’s performance during the relevant time period), you could be a victim of securities fraud.

4. Your Investments Don’t Match Your Investment Profile

Brokers and advisors have a duty to provide suitable investment recommendations. If your investments don’t match your investment profile, then you may have a claim for unsuitability.

5. Your Costs Exceed Your Returns

Charging excessive fees, account churning and other fraudulent practices can cause investors’ costs to exceed their returns. In general, investors should not suffer losses while their brokers and advisors profit at their expense. If you are not earning a reasonable return on your investments, you may have a fraud claim against your broker or advisor.

6. Other Investors Have Suffered Fraudulent Losses

If other investors have suffered fraudulent losses, then there is a good chance that your losses are fraudulent as well. You can learn about investment fraud cases from the U.S. Securities and Exchange Commission (SEC) or by reviewing our investigations.

7. You’ve Identified Other Red Flags for Investment Fraud

From unauthorized trades to inconsistencies on your account statements, there are many additional red flags for possible investment fraud. If you have concerns about investment fraud for any reason, you should contact a securities litigation law firm promptly.

Contact Zamansky LLC | A Securities Litigation Law Firm in the Heart of Wall Street

Zamansky LLC is a securities litigation law firm located in the heart of Wall Street. Our lawyers help investors nationwide recover fraudulent investment losses. To find out if you have a claim for investment fraud, call 212-742-1414 or request a free consultation online today.