If you are a securities investor and believe you may have been the victim of illegal activity, you might want to enlist the help of a Washington DC security litigation lawyer. Depending on your case, you could be eligible for financial compensation. Ben Crump Law, PLLC, is available to discuss your case in detail if you are considering legal action. Call 800-932-1441 to speak with a team member today.
The term “securities” refers to a range of financial instruments—such as a stake of ownership or debt—that holds value. Securities, when traded effectively, can be powerful tools for investors to grow wealth in the short or long term. The securities market relies on fair and honest conduct to protect investors, companies, and the market as a whole. Investors trust that companies are disclosing their financials accurately and sharing information in an honest manner, and companies rely on fair trading practices. Unfortunately, this is not always the case.
There are federal agencies, like the Securities and Exchange Commission, which regulate trading and crackdown on illegal activity. Several types of fraudulent activity can impact all investing parties, including misstatements, stock manipulation, insider trading, embezzlement, pyramid schemes, and more. Understanding these types of illegal activity can help determine if you were a victim.
Securities investors rely on a variety of financial statements to make sound investment decisions. When these statements are deliberately inaccurate, this is a form of fraud. A company could be seeking to lure investors in by creating an illusion of success by making assets seem more valuable than they are, inflating revenue, or omitting debt on a balance sheet. There are many ways to manipulate statements, and all are illegal and deceiving to investors.
Stock manipulation is an intentional action that inflates or deflates the price of a stock in the market. This manipulation can be done more effectively with small companies that trade at a lower volume. Stock manipulators can place many trades in a short amount of time to skew a price in one direction or another falsely. These trades are generally done to accomplish some sort of agenda beneficial to those manipulating the prices and extremely unfair to other investors.
Insider trading refers to an individual, group of individuals, or company taking advantage of private information and placing trades accordingly. If a person has a contact within a public company and is privy to information not yet disclosed publicly, then buys or sells stock based on this information for financial gain, this is a form of insider trading.
Many people trust financial professionals with their assets. When these assets are misappropriated, this is embezzlement. Handing over your savings to a broker who is supposed to invest them but rather holds or dishonestly uses the money is another example of embezzlement. This “white collar” crime is illegal and grounds for legal action.
Pyramid schemes are elaborate scams designed to lure more and more participants in while creating a façade to current investors that a legitimate operation is in progress. Pyramid schemes can deceive even experienced investors and take years to resolve. Many investors have lost disposable income, large sums, and even their life savings in complex pyramid schemes over the years.
For a free legal consultation with a security litigation lawyer serving Washington DC, call 800-709-1441
Even if you were already the victim of illegal activities regarding securities investments, understanding the warning signs is particularly important. If you know how to recognize suspicious behavior or potentially illegal activity, you can protect yourself and others from securities fraud in the future. Some warning signs and tips for investors that can help you avoid fraud include:
- Ask questions: If a company or investment is legitimate, they should be able to answer your questions directly. Avoiding questions or delaying answers can be a sign that something is off.
- Be wary of “good” deals: If something sounds too good to be true, it just might be. If an investment or salesperson is promising returns that do not align with similar products, this could be a red flag.
- Do your research: You probably have worked hard for your money, and you want to protect it. Any investment should therefore be preceded by as much research as possible. Learn as much as you can about a company before investing.
- Unsolicited offers: If a stranger is calling you or reaching out about an investment opportunity, this should sound alarm bells. While not all people soliciting are dishonest, many complex scams start with unsolicited contact. If a person is demanding your money right away, this may also be a sign that something is wrong.
If you were the victim of illegal activity regarding securities trading, you can get legal help. Ben Crump Law, PLLC is available to discuss your case in detail. Call us today for a free case evaluation with a team member.
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Compensation for Victims
Every case is different, but victims of securities fraud or illegal activity are sometimes eligible for financial compensation. This could include compensation for your lost investments, reimbursement for legal fees, and other damages. A Washington DC security litigation lawyer can help assess your situation and determine if compensation might be available for you.
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What You Can Do Next
Speaking with a team member at Ben Crump Law, PLLC, can help you understand the legal process before choosing a path forward that is right for you. If you are interested in a free consultation, call Ben Crump Law, PLLC, today at 800-932-1441. You deserve justice for suffering and loss caused by another party. Working with a Washington DC security litigation lawyer might just allow you to focus on your recovery during this difficult time.
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