Securities Fraud Lawyers

Parker Waichman Alonso LLP is an AV Rated Law Firm Under the Martindale Hubble Peer Review Rating System.
Parker Waichman Alonso LLP is an AV Rated Law Firm Under the Martindale Hubble Peer Review Rating System.

Securities Fraud Lawyers

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New SEC Whistleblower Rules Spur Fraud Complaints

The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed by the US Congress and signed by President Obama earlier this summer and contains some very attractive incentives for securities fraud whistleblowers, Now, according to the US Securities and Exchange Commission (SEC), the Act is leading to an increase in tips, wrote the Wall Street Journal. More New SEC Whistleblower Rules Spur Fraud Complaints? Click Here.


Securities Fraud Whistleblower Lawyers

Do you have inside information about securities fraud? The Dodd-Frank Wall Street Reform and Consumer Protection Act empowers the U.S. Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) to award between 10 percent and 30 percent of any monetary sanctions that exceed $1 million to whistleblowers who provide information leading to a successful enforcement.

If you want to become a Wall Street whistleblower, it is important to have a whistleblower lawyer on your side to make sure your rights are protected. The security fraud whistleblower provisions of Dodd-Frank allow you to remain anonymous, but in such cases you must be represented by an attorney. If you are thinking of coming forward with information about securities fraud, our whistleblower lawyers can help. Please call us today for a free, no obligation, and confidential consultation.

Until Dodd-Frank was enacted in the summer of 2010, the SEC could only provide a whistleblower award for information regarding insider trading. What's more, it limited the award to a maximum of 10 percent of the recovered amount.

To be eligible for an award under Dodd-Frank, a whistleblower must provide "original information" that leads to “any judicial or administrative action brought by the commission under the securities laws that results in monetary sanctions exceeding $1,000,000.” Types of violations eligible for securities fraud whistleblower awards include, but may not be limited to:

  • broker-dealer violations
  • corporate disclosure cases
  • accounting fraud
  • violations of the Foreign Corrupt Practices Act

The new law allows securities fraud whistleblowers to remain anonymous, providing they have legal representation. Employers are prohibited from firing, demoting, suspending, threatening, harassing or discriminating against whistleblowers. An employee who is retaliated against either by discharge or “other discrimination” as a result of their action may sue in court for reinstatement at the same seniority level, double back-pay owed to the individual with interest, as well as all costs and reasonable attorney’s fees.

Legal Help for Securities Fraud Whistleblowers

If you are aware of securities fraud, you can do something about it. To find out how you can bring your information to the SEC, please contact our whistleblower lawyers today. Just fill out our online form or call 1 800 LAW INFO (1-800-529-4636) today. You can be assured that any information you submit to our whistleblower lawyers will be kept extremely confidential.

The lawyers and attorneys at our firm are currently offering free case evaluations to victims of securities fraud. Securities fraud costs investors an estimated $40 billion dollars each year, and unfortunately, most people will not know they have been the victims of securities fraud until their losses become significant.

As more and more people have become invested in stocks and other securities, such fraud has become more common. The mortgage meltdown of 2007-2008, and the resulting chaos in the markets, has only exacerbated the problem.

Brokers, fund managers and other financial advisors have a duty to inform their clients of all of the risks involved in securities transactions. When they fail in this duty, our securities fraud lawyers will hold them accountable, and make sure that defrauded investors recoup their losses.

Types of Securities Fraud

Securities fraud occurs when laws meant to protect investors, such as the Securities Acts of 1933 and 1934, are violated. Stockbrokers, analysts, brokerage firms, corporations, investment banks, and private investors. Securities fraud is considered a serious crime, and can lead to both civil and criminal penalties. Investors are also entitled to file lawsuits in order to recover the money they lost through securities fraud.

There are several categories of securities fraud. When a corporation deliberately conceals or skews information to appear healthy and successful before shareholders, it has committed corporate or shareholder fraud. Directors of corporations may "fix" financial records or disguise inappropriate spending. Fraud committed by corporations can be devastating, not only for outside investors who have made share purchases based on false information. Corporate fraud is especially damaging for employees who, through 401ks, have invested their retirement savings in company stock.

Misrepresentation/omission is a type of securities fraud that occurs when an investor is intentionally misled about material facts regarding a security. Brokers and issuers have a duty to inform investors about all known risks associated with a stock. But our securities fraud lawyers have seen many cases of securities fraud involving misrepresentation or omission that disguises risks associated with that particular stock.

Purposely failing to diversify a client’s portfolio can be a form of securities fraud known as overconcentration. In order to protect a client’s assets, the broker should vary the types of stock purchased, securities fraud through overconcentration strips the client of the protection diversification can afford. Our securities fraud lawyers have helped many people recoup losses from this type of securities fraud.

Securities frauds involving unsuitability occur when the broker knowingly recommends stocks that are outside the client’s risk tolerance. The securities fraud lawyers at our law firm have seen many cases where this type securities fraud frequently results in losses much higher than the client can bear. Unsuitability securities fraud can be especially devastating for older people, as bad matches can wipe out large portions of retirement savings just when they need those funds the most.

Churning is another serious form of securities fraud that is used to boost a broker's fees. Churning involves trading large numbers of stocks, even when it is not in clients' best interests. Often this form of securities fraud consists of selling stocks with small gains in order to show a profit. Though stock churning is often committed by an individual broker, sometimes an entire firm is liable for that brokers actions.

Legal Help for Victims of Securities Fraud

The buying and selling of securities is highly regulated, and brokers, fund managers and other financial advisors must follow strict rules in their dealings with clients. Investors may be entitled to compensation for the loss of income that their investments should have been generating, interest on the losses and legal fees.

If you believe you have been the victim of securities fraud, it is important to contact a qualified securities fraud lawyer as soon as possible. There are definite time limitations within which investors must file claims for securities fraud. If you believe are a victim of securities fraud, please fill out our online form or contact us at 1-800-LAW-INFO (1-800-529-4636) so that our securities fraud lawyers can take the necessary action to protect your rights.

Parker Waichman Alonso LLP is an AV Rated Law Firm Under the Martindale Hubble Peer Review Rating System.

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