Investing can help secure your financial future, but dishonest practices by financial professionals can put that security at risk. Whether it's unauthorized trading or being misled about the risks of an investment, these actions can cause significant financial harm. If you’ve been a victim of securities fraud or believe your stock broker or financial advisor has acted inappropriately, Genus Law Group is here to help. We specialize in holding financial professionals accountable and helping investors recover their losses. If you think you may have a case, call us at (505-317-4455) for a free consultation.
What is Securities Fraud?
Securities fraud happens when a financial advisor, stock broker, or other financial professional engages in deceptive or unethical behavior that causes financial loss to their clients. This can include:
- Unauthorized trading: Making trades without your consent.
- Misrepresentation or omission: Providing false information or failing to disclose crucial facts about an investment.
- Churning: Excessive trading to generate commissions at the client's expense.
- Failure to disclose risks: Recommending an investment without clearly explaining the risks involved.
In New Mexico, these actions violate the fiduciary duties of financial professionals, and investors have the right to seek legal recourse.
Legal Rights and Securities Fraud in New Mexico
1. What is Unauthorized Trading?
Unauthorized trading happens when your financial advisor or stock broker makes trades on your account without your explicit approval. Even if the trades result in a profit, this is illegal without your consent. In New Mexico, financial professionals have a fiduciary duty to act in your best interests, including obtaining your permission before making any changes to your investment portfolio.
If you notice unfamiliar trades in your account, you may be a victim of unauthorized trading, and it’s crucial to consult a lawyer as soon as possible.
2. Suing a Financial Advisor for Securities Fraud
If your financial advisor has committed fraud, whether through unauthorized trades or misleading you about the risks of an investment, you have the right to sue them. In these cases, financial professionals can be held liable for damages, and victims may recover their losses. Lawsuits can involve claims of breach of fiduciary duty, fraud, and negligence.
Filing a lawsuit can also serve as a deterrent, preventing other investors from becoming victims. At Genus Law Group, we can help you evaluate your case and pursue legal action if necessary.
3. What If Your Advisor Misrepresented Investment Risks?
Another form of securities fraud occurs when a financial advisor or broker is unclear or untruthful about the risks of an investment. As an investor, you rely on your advisor to provide accurate information. When they omit important details or downplay risks to encourage you to invest, they are violating their duty to act in your best interests.
If you were misled about the risks of an investment and suffered financial losses as a result, you may be able to file a claim against your advisor. Genus Law Group can help you assess whether misrepresentation occurred and explore your legal options.
How to Spot Securities Fraud
It can be difficult to identify securities fraud until financial losses occur, but there are warning signs that you should look out for, including:
- Unauthorized or unfamiliar trades on your account
- Vague explanations or a lack of transparency regarding investment risks
- Excessive trading without clear benefit to your portfolio
- Promises of "guaranteed" returns or low-risk, high-reward opportunities
- Sudden or unexpected losses without a clear explanation
If you notice any of these red flags, it’s important to act quickly. Consult with an experienced securities fraud attorney to protect your investments.
Steps to Take If You’ve Been a Victim of Securities Fraud
1. Gather Documentation
The first step in addressing securities fraud is to document everything. This includes trade confirmations, account statements, email communications, and any other relevant information related to your investments. This evidence will be crucial in building a case against your financial advisor or broker.
2. Contact Genus Law Group
If you believe that you’ve been a victim of unauthorized trading or misrepresentation, contact Genus Law Group immediately. Our team specializes in securities fraud and can help you navigate the complex process of holding your financial advisor accountable.
3. Consider Legal Action
In many cases, victims of securities fraud can recover their losses through arbitration or a lawsuit. The Financial Industry Regulatory Authority (FINRA) oversees most arbitration cases, and our experienced attorneys can represent you through this process. If necessary, we can also file a lawsuit on your behalf, ensuring that you receive the compensation you deserve.
How Genus Law Group Can Help You
At Genus Law Group, we understand the devastating impact that securities fraud can have on your financial future. Whether your broker made unauthorized trades, misrepresented the risks of an investment, or engaged in any other fraudulent behavior, our team can help you recover your losses and hold them accountable. We offer:
- A thorough investigation into your case
- Expertise in securities law and fiduciary duties
- Guidance through the legal process, whether through FINRA arbitration or civil litigation
We are committed to protecting your rights as an investor and ensuring that dishonest financial professionals are held accountable for their actions. If you believe you have been a victim of securities fraud, contact Genus Law Group today at 505-317-4455 for a free consultation.
Contact Genus Law Group Today!
Securities fraud, whether through unauthorized trading or misrepresenting investment risks, can have serious financial consequences. However, you have legal options to recover your losses and hold dishonest financial professionals accountable. Genus Law Group has the experience and resources to help you navigate these complex cases and secure a favorable outcome. If you’ve been a victim of securities fraud, don’t hesitate to call us at 505-317-4455 for expert legal assistance.
