Skip to Content

Fraud or Bad Luck? How to Know if You Can File a Claim to Recover Investment Losses

January 21, 2021 Blog

You invested your money, but your investment didn’t pan out. Maybe you lost your principal, or maybe you built up a sizable portfolio only to watch it come crashing down. Regardless, you’ve lost a lot, and you are wondering: Are you a victim of bad luck? Or, could you be a victim of securities fraud?

When is it Time to Hire a Securities Fraud Lawyer?

Investing is inherently risky. No matter how you invest your money, there is no such thing as a guaranteed return. However, the risks you face as an investor are supposed to be based on market factors. They are not supposed to be based on the possibility of someone misappropriating or squandering your hard-earned funds.

The distinction between market-generated and fraudulent investment losses is an important one: While there is nothing you can do if you lost money purely as a result of market factors, there is something you can do if you are a victim of fraud. Depending on the circumstances involved, you may be able to file a claim in FINRA arbitration, or you may have grounds to file a lawsuit or join a class action claim.

5 Signs That You May Be a Victim of Securities Fraud

So, are you entitled to recover your investment losses? While you will need to hire a lawyer to review the facts of your specific case, here are five signs that you might be a victim of securities fraud:

  • Your losses are not explained by market factors. If your losses are not consistent with what is happening in the market for the specific securities in question, this could be a sign of fraud.
  • You were given incomplete or misleading information. Providing incomplete or misleading information in order to induce investments is a common form of securities fraud.
  • Your losses are tied to unusual activity in your account. If you see unusual activity on your account statement (i.e. unauthorized trades or a high volume of trades), this could also be indicative of fraud.
  • You can no longer get in contact with your broker or advisor. No longer being able to get in touch with your broker or advisor could be a sign that he or she either: (i) is concerned about facing allegations of securities fraud; or, (ii) fraudulently claimed to be a registered investment professional.
  • Other investors are complaining about fraud. If other investors have raised concerns about fraud with regard to your investment professional or the security in which you invested, this could be a sign that you have reason to be concerned as well.

Schedule a Free Consultation with a Securities Fraud Lawyer Today

Do you believe that you may be a victim of securities fraud? If so, it will be important for you to speak with a lawyer promptly. To arrange a free and confidential consultation with a securities and investment fraud lawyer at Zamansky LLC, please call 212-742-1414 or inquire online today.