If you invest in securities and have experienced problems with your investments, your stockbroker or investment advisor, you may be a victim of securities fraud. Most investment losses are the result of market forces - factors which have nothing to do with securities fraud.
Stockbrokers do not have a crystal ball and they are not guarantors of investments. But if your losses have been the result of fraud or a wrongful action, you ought to know because you may be able to do something about it and recover your losses.
Securities investing and trading is carefully regulated by the
Australian Securities & Investments Commission (ASIC) rules regarding the protection of public investors. The violation of these rules, particularly through various deceptive actions and schemes to cheat or take advantage of investors, is commonly known as securities fraud.
The law is generally intended to prevent anyone from using a scheme to defraud, make untrue statements, or fail to make a statement that deceives investors. It can also include market manipulation and theft from security accounts.
COMMON INVESTOR COMPLAINTS
- Fraud and misrepresentation
- Negligence and negligence
- Breach of fiduciary duty
- Trading without permission
- Excessive trading ("churning")
- Use of insider information
- Unsuitable trading
- Margin issues
Most investors who have been defrauded do not know what happened to their investments until it is too late. But even after the losses have occurred, the law provides a mechanism for investors to recover their losses which were caused by a stockbroker's misrepresentations or abuse of the account.
COMPLAINT RESOLUTION
Federal and State laws provide a legal remedy for defrauded investors to recover their losses. Investors may also be entitled to compensation for the loss of income that their investments should have been generating, interest on the losses and legal fees.
Stockbrokers and brokerage firms have certain obligations and duties to their customers. And investors have a right of recourse if their account has been abused or if they have been defrauded by an investment advisor. An investor who believes that he or she may have been the victim of an unscrupulous stockbroker should consult with an attorney to learn more about their rights under the circumstances.
Business Law
