Stock Markets and Securities Fraud

Securities Fraud
Securities Fraud

“The market is a place set apart where men may deceive each other!”
Diogenes Laertius (Circa 200)

How many ways are there to be cheated?

Shall I count the ways? Well…

No one can!

There can be as many ways to cheat investors as there are swindlers, con artists, and unscrupulous brokers and…

There are quite a few of those out there!

When you invest your hard earned money with a stockbroker, you do so with a level of trust, and this trust is backed up with strong legal protections to protect your interests.

Nevertheless, investment and broker fraud is all too common.

Brokers take advantage of the fact that they are entrusted with large sums of money and sometimes can create scams to defraud the investors.

If you have experienced large losses to your account, sometimes the responsibility may lay with your broker.

Securities litigation is a very complex and specialized area of the law.

If you feel your rights have been violated, your best recourse is to seek an experienced professional to assist you.

Have you been the victim of bad investment advice?

Did your stockbroker recommend risky investments without explaining the risks?

Did your stockbroker make trades without your understanding or authorization?

Did your stockbroker excessively trade your account?

Securities investing and trading is carefully regulated by rules and laws for the protection of public investors.

The violation of these rules, particularly through various deceptive actions and schemes to cheat or take advantage of investors, is commonly known as securities fraud.

If you believe that you may have been a victim of securities fraud, you have certain rights, which you should be aware of, rights which may provide you an opportunity to recover your losses from your stockbroker or brokerage firm.


Most investors who have been defrauded do not know what happened to their investments until it is too late.

But even after the losses have occurred, the law provides mechanisms for investors to recover their losses, which were caused by a stockbroker’s misrepresentations or abuse of the account.

Stock brokers and brokerage firms have certain obligations and duties to their customers.

And investors have a right of recourse if their account has been abused or if they have been defrauded by an investment advisor.

An investor who believes that he or she may have been the victim of an unscrupulous stockbroker should consult with an attorney to learn more about their rights under the circumstances.

Most investment advisors and stock brokers are honest, decent individuals who follow the rules of the securities industry and provide a valuable service to the public.

Unfortunately there are some unethical and dishonest investment advisors, and there are some brokerage firms that do not supervise their brokers and accounts as carefully as they are required.

Hopefully, a better informed investor will be better able to protect himself, evaluate what has happened in an account, and have some idea what might be done about it!

All investors should be aware of their rights in order to better protect themselves and to have a higher level of awareness of the standards to be expected in an investment relationship.

Many stock brokers’ and customers’ disputes might be avoided by better informed investors going into their relationships with their eyes open and knowing their rights!