New Braunfels Investment Fraud Lawyer
Investment Fraud Attorney in Comal and Guadalupe Counties
Investors and brokers have a special relationship: investors rely on brokers to use their knowledge and skill to make shrewd financial decisions that are in the best interests of the investors. Breakdowns frequently occur at every point in this relationship. While brokers must obtain a minimum score on a state test, they are not required to have college degrees or any other specialized knowledge. They sometimes fail to evaluate an investment opportunity properly, especially as it pertains to the investor's risk tolerance, and make decisions based on their own financial needs or wants. Since unscrupulous brokers are often very adept at concealing their illegal activity, these cases require an innovative and aggressive approach.
The results-oriented team at The Bettersworth Law Firm always keep your goals in mind as we work on your case. At the same time, our professional team never overlooks important details. We diligently work to find the most cost-effective and time-saving solution available so that you can get back to your life.
In recent months and years, the Securities and Exchange Commission has prosecuted dozens of brokers who wrongfully took their clients' money in conspiracies like:
- Ponzi Scheme: Instead of investing money, the broker pockets it and uses new investor funds to pay "dividends" to older investors.
- Churning: A broker may trade a high volume of shares to generate commissions, and conceal the activity by selling the most profitable investments, so your portfolio appears to be high-performing.
- Unsuitable Investments: While high-risk investments generally have a higher return, there is also a more significant chance that you could lose some or all of your money.
- Failure to Advise: In a similar scheme, brokers provide incomplete or misleading information about risky investments.
- Misrepresentation: This often occurs when misleading information crosses the line into outright falsehood.
Under the Dodd-Frank Act and similar laws, those who report illegal broker or investment activity are entitled to substantial bounties, in most cases up to 30 percent of the money eventually recovered.
If represented by an attorney, the whistleblower may remain safely anonymous while still collecting money. Perhaps even more significantly, whistleblowers expose illegal activity and thereby protect other investors. This is an important consideration since these cases are often difficult to prove absent direct evidence of unlawful acts or intents.
For prompt assistance in this area, contact The Bettersworth Law Firm at 830-606-0404 for a free consultation. We do not charge upfront legal fees in many of these cases.