Millions of investment transactions take place every day in the U.S. and investors often use brokers to manage their investments. Brokers—either firms or individuals—make their money from commissions. With the amount of activity and money being invested daily, there is bound to be a high potential for a broker to defraud or otherwise take advantage of investors. What recourse do investors have when their brokers mismanage the investments (often for their financial gain)?
If you think you have been (or are about to be) defrauded, cheated, or scammed, check out these organizations that offer resources and other information to protect yourself and others.
Multiple state and federal agencies in the United States offer consumer protection oversight and investigations for people or companies who are defrauded, cheated, and scammed. Those agencies are a resource for educational information about the latest schemes and frauds as well as options to report claims to investigators.
Often, when a company or individual is suspected of fraud,either because of a criminal indictment or a civil suit from the SEC or a private individual, the Courts will take action to make sure that an “outside”person has some level of authority over the assets or operations of that company. You’ll see this a lot in bankruptcy cases – even in legitimate, non-fraudulent bankruptcies – a company will enter bankruptcy, and the Court will appoint someone to make sure that the assets of the company are sold at maximum value, or the operations of the company are continued so as to add more money to the pot for the bankruptcy creditors.
The information contained in this blog is made available for educational and informational purposes and is not a substitute for legal advice or reading the rules and regulations discussed herein. In any particular case, you should consult with lawyers at the firm with the most experience on the topic, another attorney of your choice, or law enforcement. Depending on your specific situation, answers other than those outlined in this blog may be appropriate. Your use of this blog and website creates no attorney client relationship between you and Kozyak Tropin & Throckmorton LLP.