Fraud, Omissions, Misrepresentations

When it comes to investing, trust in your broker or financial advisor is paramount. Unfortunately, not all financial professionals act in their clients' best interests. Malecki Law is dedicated to protecting investors who have been harmed by fraud, omissions, or misrepresentations. Understanding these terms and knowing how to take action can help you safeguard your financial future.

Fraud in the securities industry occurs when a broker or advisor intentionally deceives an investor for personal gain, often resulting in financial losses for the investor. This deceit can take various forms, such as falsifying information, manipulating account activity, or recommending investments that are knowingly unsuitable. Fraud undermines the integrity of the financial markets and can have devastating effects on investors.

An omission occurs when a broker or advisor fails to disclose material information that is essential for an investor to make an informed decision. For example, if a broker recommends a security without disclosing its associated risks or the broker’s personal financial interest in the product, they may be guilty of an omission. Omissions can be just as damaging as outright fraud, as they prevent investors from fully understanding the nature of their investments.

Misrepresentation involves providing false or misleading information to an investor. This could include exaggerating the potential returns of an investment, downplaying risks, or providing inaccurate details about the financial product being offered. Misrepresentations can lead investors to make decisions they would not have made had they known the truth.

Proving fraud requires evidence that the broker or advisor intentionally acted to deceive you. Key elements include:

1. Material Misstatement or Omission: You must show that the broker provided false information or omitted critical facts.
2. Reliance: Demonstrate that you relied on the broker’s statements or omissions when making your investment decisions.
3. Damages: Provide evidence of financial losses directly resulting from the misstatement or ommission.
4. Intent: Show that the broker knowingly engaged in deceptive practices, which can often be inferred from their actions or patterns of behavior.

Documentation, such as account statements, emails, and recorded phone calls, can be crucial in building your case. Working with an experienced securities attorney is essential to navigating this complex process.

Some red flags to watch for include:

• Unexplained or unauthorized transactions in your account.
• High-pressure tactics to invest quickly or without sufficient information.
• Recommendations for complex or unsuitable investments.
• Frequent account activity that generates high commissions but low returns.
• Failure to provide clear, written explanations of investment strategies.
• Lack of transparency regarding fees or conflicts of interest.

If you notice any of these warning signs, it is critical to act promptly to protect your assets.

If you suspect your broker or advisor has engaged in fraudulent behavior, take the following steps:

1. Gather Documentation: Collect all relevant account statements, agreements, correspondence, and transaction records that support your suspicions.
2. Contact Malecki Law: Speak with an experienced securities attorney to evaluate your case and discuss potential legal remedies. At Malecki Law, we are well-versed in handling claims involving fraud, omissions, and misrepresentations.
3. File a Complaint: Consider filing a complaint with FINRA or the SEC to report the misconduct. Your attorney can guide you through this process to ensure your claim is properly submitted.
4. Protect Your Assets: Work with a qualified financial professional to review your portfolio, mitigate further losses, and file claims to potentially recover your losses.

At Malecki Law, we understand the devastating impact that fraud, omissions, and misrepresentations can have on investors. Our team is dedicated to holding financial professionals accountable and securing justice for our clients. If you believe your broker or advisor has engaged in fraudulent conduct, call Malecki Law at (212) 943-1233 to schedule a consultation. Together, we can work to recover your losses and restore your financial security.