Trading Fraud Law

According to the Securities Act of 1933, the regulatory practices of the SEC were to ensure investors had appropriate and true information regarding securities sold to the public.  Additionally, the Act prevented misrepresentation or fraud to be used to sell securities, and gave investors legal rights to recoup losses beyond market conditions in the event of illegal or unethical activity by brokers, brokerage firms, or any financial professional selling profit vehicles to the public. 

Trading Fraud

A number of illegal actions may result in investors filing claims against liable parties for trading fraud.  Typically, claims of trading fraud must be based on some recognized grounds.  Some of the most commonly cited examples of grounds for trading fraud claims include conflict of interest, breach of fiduciary duty, excessive trading or churning, failure to supervise, failure to diversify, misrepresentation, unregistered brokers, omission, insider information, market manipulation, unsuitability, unauthorized trading, and brokerage malpractice. Any one of these grounds should be sufficient to file trading fraud claims; however, investors should consider some important facts before filing claims.  First, did the losses incurred by an investor result from the negligent actions by their broker.  Second, did negligent actually really occur and can it be documented.  Third, most brokerage firms mandate through initial contracts with investors that claims immediately go into arbitration.

Legal Help

 If you feel that you have suffered financial losses due to trading or securities fraud, contact a securities fraud attorney today to find out more about your legal options. Consulting with a trading fraud lawyer can inform you of the correct path of legal action to take to ensure your rights to recoup your financial losses are upheld.