Securities Fraud: How to Recover Your Investment

Each year several investors lose their money to stock market fraud and other securities law violations. These losses are estimated at over $40 billion. Almost any investor can be a victim of securities fraud, and, if you are, you need to know what you can do to recover your money.

If you have lost your money to fraudsters, you may be eligible to recover your money. However, you should note that not all losses in the stock market are a result of fraud. Get to know the types of stock market fraud to know when to raise the alarm.

There are several organizations where victims of brokerage fraud and other securities fraud can report their cases. If you suspect that you are a victim of stock market fraud, here are a few things that you can do to help recover your money:

Know Your Rights as an Investor

The first way to protect yourself from fraud is to know your rights. Losing your money is not the end of the road. You have a right to fight back and get your money, especially if you are a victim of fraud. 

You can check out the U.S. Department of Justice (DOJ) for more information about your rights as an investor or talk to a lawyer. There is a lot that you can do to get help. Do not accept loss until you prove that the investment was valid.

Have an Investment Fraud File

You need to collect all relevant documents concerning your lost investment. This includes any correspondence with your broker, their name, telephone number, email address, and their firm’s website address. Do not forget to include their regulatory registration number if you have it. 

The file should also include the police report and your recent credit report. Your stock attorney will need all these documents to file a lawsuit and also investigate your case. 

Report the Case to Regulators

Several agencies regulate brokers, brokerage firms, financial advisors, and investment products. These agencies can help you recover your investment. Some of these regulatory bodies include the following: 

  • U.S. Commodity Futures Trading Commission
  • U.S. Securities and Exchange Commission
  • National Futures Association
  • North American Securities Administrators Association
  • Internet Crime Complaint Center which is a partnership between the National White Collar Crime Center and the FBI 
  • National Association of Insurance Commissioners

You should also report the case to the Federal Trade Commission (FTC). Though reporting your case to these bodies will not trigger a criminal investigation, it will help stop any other ongoing fraud and save other investors from losing their money.

Report to Law Enforcement Agencies

This is where you will initiate a criminal investigation to help recover your money. You can report to your local law enforcement agency, the district attorney, attorney general, or the FBI. This will ensure that your claim is investigated and any suspicion of fraud is confirmed. Once you confirm your case is valid, you can consider your options and use legitimate ways to recover your money.

Hire an Investment Attorney

You will need to have the right legal representation to file a lawsuit. This process of recovery can take time and requires a lot of follow-ups. Having someone who is familiar with stock market fraud cases will ensure that you can recover your investment. Attorneys also work with private investigators who know how to investigate such cases and help you get back your investment fast.

If you suspect that you are a victim of brokerage fraud or any other securities fraud, you should immediately speak to a stock market fraud attorney to know your rights and legal options. Remember, you have a right to report and investigate any suspicion of fraud. An experienced attorney will help you with your case and recover your losses.

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