Common Questions About Stockbroker Fraud

When you’re looking to invest your hard-earned money it’s always important to perform your due diligence before making any important decisions. It’s wise to research any investment opportunity as well as look into and vet any stockbroker or financial professional you may potentially work with.

Stockbroker fraud, unfortunately, happens all too often. However, many people—especially new investors—may not have enough knowledge and experience to keep their money safe. At Colling Gilbert Wright, our attorneys have extensive experience helping individuals who’ve had the misfortune of dealing with fraud. In our years of helping investors, there are certain questions we often get asked. Below we outline some of those questions so that you may be more prepared for when you invest.

What constitutes investment fraud?

The act of investment fraud is when a stockbroker or financial professional acts intentionally or grossly negligent with your investment, generally to benefit the broker and not the client. This can occur if the broker or financial professional tries to influence or control the market or uses deceptive practices, such as giving misleading advice that ends up benefiting the broker and not the client.

What is securities fraud?

Securities are two kinds of investment: stocks and bonds. Securities fraud generally occurs when a broker, financial professional, or corporation uses illegal acts to manipulate the investment market to benefit themselves.

What are my options if I’m a victim of securities or investment fraud?

While every case is different, most fraud cases can be handled through either mediation, arbitration, or through the courts. If you enter into a contract with a broker, many contracts state that any disputes must be handled through binding arbitration and not through the courts. No matter if you have a binding contract or not, if you believe you’ve been the victim of fraud it’s important to contact an experienced investment fraud attorney to help you get justice and the compensation for your loses.

If you’ve been the victim of any type of stockbroker fraud, call the attorneys at Colling Gilbert Wright today at 888-513-3010 to schedule your complimentary consultation. We proudly help those who live in and near the Orlando, Florida area.