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Securities Lawyers Advancing the Interests of Investors

Securities fraud claims arise for reasons unrelated to market forces. When fraud is related to registered securities, it is governed by the Securities and Exchange Commission (SEC), which has broad authority over the entire securities industry. Securities fraud may involve mutual fund fraud, Ponzi schemes, false and misleading statements, corporate fraud, brokerage fraud, or accounting fraud. If you have suffered financial losses as a victim of fraud, you should consult the securities fraud lawyers at Varbero Casagrande.

What is Securities Fraud?

A wide range of conduct may constitute securities fraud that can give rise to a claim. For example, if a business is untruthful in its SEC paperwork, this is a type of securities fraud. Similarly, manipulating stock prices is securities fraud. Broker embezzlement, pyramid schemes, and late-day trading may be actionable as securities fraud. In Ponzi and pyramid schemes, existing investors get money from new investors’ contributions. When, for example, investors are deceived into joining an investment scheme that has high returns and little risk, there may be high-yield investment fraud. Internet fraud may occur when chat rooms or forums are used to spread false information about stocks. One type of internet fraud is a pump and dump scheme.

Federal Laws and Rules Prohibiting Securities Fraud

The federal Securities Exchange Act of 1934 prohibits misleading omissions of material facts or misstatements, as well as fraudulent or manipulative acts and practices, in connection with buying or selling securities. Under Section 15(c), a broker is prohibited from buying or selling a security through a deceptive, manipulative, or fraudulent device or contrivance.

Rule 10b-5 makes it illegal to use an artifice, scheme, or device to defraud in connection with buying or selling a security. It also prohibits making an untrue statement of a material fact, leaving out a material fact that is necessary to make a statement not misleading, and engaging in any course, practice, or act of business that operates or would operate as a deceit or fraud upon someone. Your securities fraud attorney will need to show that there was a causal link between the misstatement or omission that you believe constitutes fraud and the damages that you seek. Generally, the information that was misrepresented or omitted needs to have adversely affected the stock price. Sometimes it is possible to show that there was a subsequent disclosure that was made to correct the omission or misstatement, and this subsequent disclosure caused the market to respond negatively.

The Financial Industry Regulatory Authority (FINRA) regulates the conduct of its members, including brokers and brokerage firms. FINRA rules also prohibit securities fraud. FINRA Rule 2010 provides that a member firm must observe equitable and just trade principles and high standards of commercial honor. FINRA Rule 2020 provides that no member of FINRA shall make a transaction or induce someone to buy or sell a security through the use of a deceptive, manipulative, or otherwise fraudulent device or contrivance.

FINRA Arbitration

Our securities fraud lawyers can help an investor arbitrate a securities fraud claim before FINRA. By proceeding through FINRA, the parties can avoid the expense and waiting period associated with suing through the judicial system. It is still important to retain an experienced attorney to guide you through the arbitration process.

Securities Fraud Under State Laws

Each state has its own securities fraud laws, and securities fraud may be pursued as a criminal matter. However, the criminal matter is distinct from your civil claim. You still may be able to prevail in your civil claim if you can show the elements that are required under the state law, even if the defendant is not convicted of a crime based on the same conduct.

Hire a Dedicated Investment Fraud Lawyer

Securities fraud has the potential to cause serious financial harm to investors. If you suffered financial losses due to securities fraud, you should contact Varbero Casagrande. Our attorneys can carefully examine the facts surrounding your situation and determine the appropriate strategies for pursuing remedies. The securities fraud attorneys at Varbero Casagrande assist clients nationwide. Call our New York Office at: (646) 378-4400, or our Florida Office at: (954) 998-7910 or contact us via our online form for a free case evaluation.

Client Reviews
I was represented by Mr. Varbero and Mr. Casagrande in a FINRA arbitration matter. They both were very professional and knowledgeable about my case. I was very satisfied with the outcome and their expertise. I would highly recommend them to anyone in need of an attorney. C. Sabbio
Thanks to the team of Mr. Varbero and Mr. Casagrande who meticulously prepared the case for my mediation hearing. I am most grateful for their hard work and attention to detail. These factors helped settle the case favorably. J. Heller
As a former Law Enforcement Officer, I’ve dealt with plenty of attorney’s over the last 24 years. Mr. Varbero and Mr. Casagrande were top notch. Very Competent, detailed and they over deliver. Highly recommended by me. W. Fowlkes
I would love to thank you guys for a great job as my lawyer in getting me the best settlement. I am grateful for having you guys represent me. Anyone I know who needs a lawyer, I will send over to the firm. R. Johnson