Financial/Investment Fraud Claims

Fraud is a deceitful practice. Fraud can present itself in many ways but often there is a misrepresentation of a material fact, and that misrepresentation is made with the intention for the other party to rely to his or her detriment. In addition to misrepresentation, fraud can appear as a material omission, in which a party withholds information to the detriment of the other party.

• Intentional fraud. When a party intentionally misrepresents or omits material information to the detriment of the other party. In these instances punitive damages may be assessed for this type of fraud. A clear example of this is one party sells something they know does not exist.


Stockbrokers must follow the “know your customer” rule and recommend investments that are suitable in light of their customers’ age, financial condition, tax status, investment objectives, other investments and investment experience, time horizon, risk tolerance and liquidity needs. Stockbrokers must also place their customers’ interests ahead of their own, disclose risks and fees, recommend an appropriate investment strategy, and offer only products approved by their firm. At its core, the stockbroker-customer relationship is about trust. Our firm has secured great successes in representing victims of fraud. We also represent individuals who have been named as Respondents in arbitrations. Common fraud claims we take on include:

• Churning, unauthorized trading, misrepresentations, omissions and other types of securities fraud
• Disclosure failures
• Fraudulent asset sales
• False and misleading disclosures
• Negligence and fraudulent misrepresentation
• Innocent fraud
• Negligent or otherwise inadequate supervision of securities professionals
• Penny stock fraud
• Ponzi schemes
• Portfolio pumping
• Selling away, which means selling investments not approved by the brokerage firm
• Theft of client funds
• Unsuitable investments based on the investor’s age, risk tolerance or other factors
• Contract fraud
• Intentional usurping

If you have fallen victim fraud we invite you to reach out to our offices today. Our experienced fraud and consumer rights attorneys are ready to help. Please complete our online form or call today for a free consultation at 619-432-5145.

Diana Legal