While criminal activity against market investors is investigated and pursued by the Federal Bureau of Investigation (FBI), there may be other options available for investors who have lost money investing due to fraudulent securities activity. Federal securities laws also protect investors through the regulatory process and civil options to recover damages may also be available. The American economy, and many individual investors, rely on the integrity of the securities market which may leave you wondering what securities fraud is and how you can protect yourself from the same.
According to the FBI, securities fraud can include a number of activities, however, those activities share in common that they are designed to manipulate financial markets and deceive investors. Potential scams can include high yield investment fraud; pyramid schemes; advanced fee schemes; broker embezzlement; ponzi schemes; foreign currency fraud; hedge fund related fraud; and late day trading. All of these different types of activities can be potentially damaging to investors.
It is important for investors and potential investors to be able to identify potential warning signs of securities fraud which can include offers that sound too good to be true or any offer that makes the party uncomfortable based on the information that is being requested or the nature it is being requested by. It is important to conduct thorough research when considering a potential investment.
If you have been, or believe you may have been, the victim of securities fraud, there may be a variety of options for relief available to you. In addition to regulatory and criminal options that may be available, the legal process also provides options for victims of securities fraud that may allow victims to recover losses when harmed. Securities fraud class action lawsuits may also be one option to consider when a group of investors have been similarly harmed.