Investment Fraud and Other Cases Handled by Litigation Attorneys


There are thousands of securities brokerages located throughout the United States. As recently as 2015, for example, there were 26,823 in operation. While the number of firms and payroll amounts may have fluctuated since that time, it’s interesting to note that in 2015, the overall payroll for these securities brokerages was $63 billion.

A Brief Overview of Securities Fraud Cases

Stock fraud and investment fraud are both included under the umbrella of securities fraud. Basically, the underlying factor of these deceptive practices is when an investor is persuaded to either purchase or sell his or her investments based on false information. This is a definite violation of securities laws. Given the fraudulent nature of these cases, it is not unusual for victims to lose a large percentage or even all of their investments.

Pending Fraud Cases for 2009 and 2014

A significant portion of fraud cases may be ongoing and still pending. In 2009, for instance, the Federal Bureau of Investigation reported that there were 1,5000 securities and commodities fraud cases pending. As of 2014, there were 1,639 pending cases. In addition to the securities and commodities’ fraud cases pending in 2014, 633 of these were corporate fraud cases.

A Brief Overview of Enforcement Actions From Fiscal Year 2012 and 2013

During 2012’s fiscal year, 734 enforcement actions were filed by the U.S. Securities and Exchange Commission (SEC). Orders for disgorgement and penalties were also obtained by the SEC at that time. This amounted to a total of $3.1 billion. The following fiscal year, the SEC filed 686 enforcement actions. The Commission also obtained disgorgement and penalties’ orders that totaled $3.4 billion.

A Brief Overview of Pyramid Schemes

Pyramid schemes are also considered to be fraudulent. These usually begin with a recruiter that is at the top of the pyramid. This individual will then bring in a second individual that is required to invest a specific amount of money, which is then paid to the initial recruiter. After this, the second member needs to recruit additional investors. Once this second recruiter is able to bring in ten more investors, he or she will be able to make a profit from their initial investment with the primary recruiter.

Many individuals may be familiar with pyramid schemes. This is especially true when these white collar crimes receive a considerable amount of media attention. One of the more famous cases involves a Wall Street investment manager named Bernard “Bernie” Madoff. He is known to have orchestrated the largest Ponzi scheme in history. At one point, he served as the chairman of the NASDAQ stock exchange; this was prior to his arrest in December 2008. Due to Maddoff’s criminal actions, his victims lost almost $20 billion. As a result, Madoff was sentenced to 150-years in prison.

The Importance of Consulting With Litigation Attorneys

Are you are employed by, or otherwise involved with, a financial institution that buys and sells stocks or other types of securities? If you suspect that someone is committing fraud, it’s important to consult with a securities fraud lawyer or a stockbroker fraud lawyer as soon as possible. Since fraud can be committed by a variety of businesses and other enterprises, such as estate planners, you may also be thinking about consulting with a firm of litigation attorneys with experience in these matters. If you believe someone is embezzling money from your business, you may want to begin a discussion on this matter with an experienced business attorney.

Once you consult with a firm of litigation attorneys, they will be able to analyze any evidence you have compiled and engage in further investigation. While it’s a good practice to have a list of questions prepared ahead of time, you will also have the opportunity to ask additional questions during your consultation. In the event that your litigation attorneys believe there is a solid case, they will assist you throughout this process.

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