Broker misconduct is a common type of investment fraud. Contact our investment fraud lawyers today.

Choosing a Nashville Investment Fraud Laywer

If you’ve been the victim of investment fraud or securities fraud, you may need to contact our Nashville investment fraud lawyers today.

What is Investment Fraud?

According to the FBI, Investment fraud involves the illegal sale of financial instruments. The typical investment fraud schemes are characterized by offers of low- or no-risk investments, guaranteed returns, overly-consistent returns, complex strategies, or unregistered securities. Examples of investment fraud include advance fee fraud, Ponzi schemes, pyramid schemes, and market manipulation fraud.

What are some examples of investment fraud?

Investment fraud and securities fraud can take many forms.  That’s why it’s important to have a skilled Nashville investment fraud lawyer to help you navigate these complex issues.

Common types of investment fraud include:

  • Broker Misconduct

    • Broker misconduct can take many forms.  Common examples of broker misconduct investment fraud include:
      • Unsuitable Investments:

        • Investments should be appropriate for the age, resources, and investment goals of the investor. If your broker is taking inappropriate risks with your money, you may need to contact a Nashville investment fraud lawyer today.
      • “Churning” or Excessive trading:

        • Brokers get paid based on commissions and fees. When a broker generates an unusually high number of trades, this may be a sign the broker is engaging in “churning.”  Our investment fraud attorneys can help determine whether your broker has breached a fiduciary duty to you.
      • Excessive Use of Margin and Margin Interest:

        • Buying on margin involves borrowing, typically from a brokerage firm. If your broker is abusing margin or charging excessive margin interest, contact our Nashville investment fraud lawyers today.
      • Broker Negligence

        • When a broker breaches a fiduciary duty, whether through negligence or other misconduct, the brokerage firm may be liable for the losses.
  • Affinity Fraud:

    • According to My Retirement Paycheck, “This fraud refers to investment scams that prey upon members of certain groups, such as religious or ethnic communities, the elderly or professional groups. Deceivers who promote affinity scams frequently are — or pretend to be — members of the group. They enlist respected community or religious leaders from within the group to spread the word about the scheme by convincing people that a fraudulent investment is legitimate and worthwhile. Often the leaders themselves become unwitting victims of the fraudster’s scheme.”
  • High-return or risk-free investments:

    • “Some unscrupulous brokers and investment advisors recommend unsuitable products that don’t meet the investment objectives or financial situations of investors. Inappropriate recommendations might occur when a broker sells speculative, high-risk investments such as options, futures or penny stocks to individuals who are near retirement or are retired and have a low-risk tolerance.”
  • Pyramid schemes

    • According to Financial Advisor, “many Americans have encountered a pyramid scheme through a family member, colleague or friend, the SEC says. Though a pyramid scheme may sound similar to a multilevel marketing program where earnings are based on the amount of sales, a pyramid scheme is an illegal practice. Participants in this scheme can only make money by recruiting new participants and they also have to buy a large inventory of a product or products. The Federal Trade Commission advises that people be skeptical of stories where the recruiter came out of poverty and acquired wealth through the program.”
  • Promissory Notes:

    • “A promissory note is a type of debt that is similar to a loan or IOU and is used by a company to raise money. Typically an investor agrees to loan money to the company for a set period of time. In exchange, the company promises to pay the investor a fixed return on the investment, typically principal plus annual interest. While promissory notes can be legitimate investments, those that are marketed broadly to individual investors often turn out to be nothing more than worthless paper. Most established companies have borrowing relationships with financial institutions, therefore this type of transaction among individuals is rare. Individual investors should exercise extreme caution with this type of investment.”

If I or a loved one am the victim of investment fraud, what should I do?

Contact the Tennessee investment fraud attorneys and Nashville investment fraud lawyers at David Randolph Smith & Associates right away. We’ll hear the facts of your case and offer expert advice on what steps to take next, and how to navigate your claim.  Contact us today.