What to Do about Stock Broker Fraud

Many people have had large Investment losses since the beginning of the financial crisis in August 2007. The most well-known and egregious of these is the case of Bernard Madoff, who somehow engineeered a ponzi scheme involving over $50 billion. In the case of Madoff, this was an obvious fraud, but in other cases this is not as clear. People can suffer large Investment losses because they made bad choices on risky investments, but don't be sure that the whole story. If you were misled by your stock broker, you may have a legitimate case for fraud against you.

If you have suffered from significant stock market or securities
investment losses , and think you may have been misled by your stockbroker, you may be able to recover your investment losses due to fraud. There is no need to act the part of the helpless victim if you were fooled by a fraud. Seek legal advice on this matter, it could be worthwhile indeed. One thing you should look at is to bring a case before the Financial Industry Regulatory Authority, known as FINRA. FINRA are the good guys who may be able to help you, but you will also need legal advice to get the most of this opportunity.

For example, if you look at the FINRA website you will see recent cases where investors actually did receive their money back. It's fascinating, and most of the general public does not even know that this is possible. Recently, Citigroup Global Markets, UBS and Deutsche Bank were ordered to make investor restitution in the Vonage IPO case. This is interesting, because as far as I know, all the companies involved still exist and our not defunct. The investors in question purchased shares of the Vonage, LLC initial public offering, commonly known as a IPO in May 2006 through a direct share program. In September 2009, FINRA fined the three firms because the firms did not let customers know key information about the Vonage IPO. Each of the firms was a lead underwriter for the Vonage IPO involved in a large directed share program. FINRA ordered that the firms make restitution payments involving the customers paying too much for the Vonage stock involved.

So it shows that using a lawyer, and going through FINRA, as just one mechanism, it is actually possible for ripped-off investors to get their money back.