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Our Miami Investment Fraud Lawyers Represent Florida Investors in Securities Fraud Arbitration and Litigation

Zamansky LLC is a leading securities litigation and investment fraud law firm with offices in Miami and New York City. Our lawyers have decades of experience taking on many of the world’s largest companies and firms. This experience has earned our firm a nationwide reputation for helping defrauded investors recover their investment losses. If you have suffered fraudulent investment losses under any circumstances, we can help, and we encourage you to speak with one of our Miami investment fraud lawyers in confidence.

In addition to handling securities fraud cases against major publicly-traded companies and brokerage firms, we also represent investors in claims against smaller firms. We also handle claims against individual brokers and advisors—including those who directly misrepresent their qualifications or the securities they sell. 

Securities Fraud Claims

“Securities fraud” is a broad term that encompasses many different types of fraudulent conduct. If you were misled into purchasing or selling a security, or if you suffered investment losses due to corporate greed or fraud, our lawyers may be able to help you recover your losses in arbitration or in court. Our Miami securities fraud attorneys handle cases against publicly-traded companies, private companies, brokerage and advisory firms, corporate executives, promoters, scam artists and others involving issues such as:

Concealment of Material Business Trends

U.S. Securities and Exchange Commission (SEC) regulations require publicly-traded companies to disclose material business trends to investors. A “material business trend” is any trend that impacts the company’s liquidity, capital resources or net operating income. Failing to disclose, or inadequately disclosing, a material business trend is a form of securities fraud for which aggrieved investors can seek financial compensation.

Misappropriation of Funds

When companies experience misappropriation of funds, their investors often suffer the consequences. As a result, companies must take appropriate measures to recover their funds and provide adequate disclosures to investors. Failures on either of these fronts can justify shareholder derivative lawsuits or investor fraud litigation against the company.

We also represent investors in misappropriation cases against their brokers and advisors. So if your broker or advisor has stolen from you, or if you lost money in a securities fraud scam, it is important that you speak with a Miami investment fraud attorney as soon as possible.

Ponzi Schemes

Ponzi schemes remain a significant risk for retail investors. If you have lost money in a ponzi scheme in Miami, our lawyers may be able to help you recover your losses. We can pursue a claim against the scheme’s operator, and, if necessary, we can seek to freeze the ponzi scheme operator’s assets in the United States so that they remain available for recovery.

Pump and Dump Schemes

Pump and dump schemes can leave investors facing substantial losses with virtually no hope of recovery through market forces. Whether perpetrated by company insiders or outside parties, these market manipulation scams are designed to allow those involved to reap substantial profits at unsuspecting investors’ expense. These scams often use microcap or penny stocks but may also involve other securities. Supposed “inside tips,” aggressive marketing campaigns focused on “acting now,”  and selling away are common red flags for pump and dump schemes. Those who fall victim will often have multiple paths to financial recovery.

Structured Product Fraud

Structured products are complex securities that are not well-suited for most individual investors. Yet, many brokers push these securities on their clients—typically because they offer high commissions and fees. If you have lost money investing in a security that you did not understand, such as a structured note, reverse convertible or non-traded REIT, you may have a claim for structured product fraud.

Unfair Competition

Unfair competition and unfair trade practices can lead to substantial investor losses. When companies engage in these practices, they can face various adverse consequences, and they must disclose these risks to investors as required by law. Falsely reassuring investors of legal compliance, failing to disclose litigation or enforcement action, failing to disclose the financial risks of a change in business practices and making inflated and unjustified financial projections are all forms of securities fraud that can arise out of unfair competition.

Broker Fraud & Stock Losses in Florida

When you hire a broker, you trust your broker to act with your best interests in mind. You expect your broker to make sound investment recommendations and help you make informed decisions about where to put your money.

Unfortunately, this doesn’t always happen. Many brokers fall short of meeting their expectations (and legal obligations), and some brokers are more than willing to profit at their clients’ expense. If you believe that your broker is to blame for your stock losses, you may have a claim for broker fraud. Our Miami investment fraud attorneys represent investors in all types of stockbroker fraud cases, including:

Market Manipulation and Trading Violations

Market manipulation and trading violations by brokers can lead to investor losses. This includes prohibited practices such as front running, insider trading, naked short selling, spoof trading, and pumping and dumping. If your broker committed trading violations, facilitated a market manipulation scheme or encouraged you to invest in a stock with a manipulated price, you should speak with one of our Miami investment fraud lawyers about your legal rights.

Microcap & Penny Stock Fraud

Microcap stocks, also known as penny stocks, present a variety of risks for investors. While brokers often pitch these stocks to their clients as having high upside potential, investing in them can also lead to significant losses. Trading in microcap stocks requires a specific skill set, a high risk tolerance, and lots of money you can afford to lose. As a result, it is not a suitable strategy for most retail investors. If you lost money in penny stocks based on your broker’s advice, you may have a claim for microcap stock fraud.

Overconcentration (Failure to Diversify)

Diversification is an essential investment strategy for retail investors. It mitigates the risk of substantial losses triggered by unexpected events, and it generally provides a path to wealth accumulation over the long term.

In contrast, failure to diversify, or overconcentration, can be extremely risky. When brokers over-concentrate their clients’ portfolios, their clients can lose everything in the blink of an eye. Federal securities laws and regulations require brokers to take steps to ensure adequate diversification, and failure to do so can justify a claim for fraud.

Unauthorized Trading

Before trading on a client’s behalf, a broker must obtain the client’s authorization. This can either be authorization on a trade-by-trade basis or authorization based on a grant of discretion. With discretion, or “trading authorization,” brokers must still act with their clients’ best interests in mind—as it is generally assumed that investors would not authorize trades that are inconsistent with their risk profiles or investment objectives. Unauthorized trading is another common form of broker fraud that often arises from a desire to generate fees and commissions.

Unsuitable Investment Advice

One of a broker’s most fundamental obligations is the obligation to provide suitable investment advice. If your broker recommended investments that were not well-suited to your risk profile and investment objectives, you may be entitled to recover your losses through FINRA arbitration.

FINRA Arbitration and Securities Litigation in Florida

As an individual investor, you have four primary means of recovering your fraudulent investment losses. These are: (i) arbitration, (ii) mediation, (iii) litigation and (iv) class actions. When you contact us about your case, our Miami investment fraud lawyers will help you thoroughly consider your options and choose the best path forward.

FINRA Arbitration

Most investor claims against brokers and brokerage firms are resolved through arbitration with the Financial Industry Regulatory Authority (FINRA). Brokers and brokerage firms are required to submit to arbitration for most types of investor claims, and FINRA arbitration offers a streamlined alternative to courtroom litigation.

Securities Mediation

Securities mediation is a non-binding alternative that allows investors and their brokers or advisors to reach amicable settlements. Often, parties to securities fraud disputes will agree to pursue mediation in good faith before litigating their disputes at trial.

Securities Litigation

In some cases, aggressively pursuing securities litigation is investors’ only option. If going to court is what is necessary to recover your fraudulent investment losses, our attorneys will rely on their decades’ worth of experience to fight for a just result at trial. We handle lawsuits against all types of fraudulent actors, including companies, brokerage firms, investment advisory firms and individuals.

Class Actions

Class action litigation allows aggrieved investors to seek remedies as a group when pursuing individual lawsuits is not financially tenable. Our securities fraud litigation practice includes representing clients in:

Contact a Miami Investment Fraud Attorney at Zamansky LLC

Have you suffered fraudulent investment losses in Florida? If so, we can help. To discuss your case with a Miami investment fraud attorney at Zamansky LLC in confidence, call 212-742-1414 or tell us how we can reach you online now.