Articles Tagged with stock fraud attorney

Initial Coin Offerings (ICOs) are becoming an increasingly popular platform for raising capital these days, especially within the emerging tech industry. ICOs allow companies to offer virtual coins in exchange for capital contributions from investors. You may be more familiar with virtual currency under names like Bitcoin, Ethereum, or one of the many other forms of cryptocurrency that have popped up.

You have probably heard the hype surrounding ICOs and virtual coins and you may have even considered investing in virtual currency through an ICO. While initial coin offerings can be a great new means for investing, it’s important not to get blinded by the hype. Theses types of offerings are new for many investors. Additionally, they are attached to rapidly evolving and dynamic technologies, some of which you may not fully understand.

Unfortunately, this factor has allowed room for fraudsters and scammers to take advantage of investors. This should not intimidate you from investing in initial coin offerings, however. Education is the best way to prevent investment fraud. Here are some basic things you should know, before you look into investing in an ICO.

investment and bankruptcy lawyers serving tampaWhen you have a stockbroker handle your investments, you expect that this person won’t violate legal and ethical standards. But sadly, this isn’t always the case, and below are several reasons you may need to hire a stock fraud attorney.

Misrepresentation or Omissions

In order to know when to buy or sell an investment, clients need enough information from their broker in order to make a sound decision. However, some brokers fail to reveal important facts or they make false claims such as “I have an inside tip.” Brokers can potentially be held liable if clients make poor investments based on misrepresentation or omissions.

investment and bankruptcy lawyers serving tampaIf you’ve been the victim of stock fraud, you will definitely need the services of an experienced stock fraud attorney who will handle your case. But, you may be wondering, what will a stock fraud attorney do for you?

In an attempt to make this process go a little bit easier for you — even though, certainly, the process itself is far from easy — here’s a short list of responsibilities that stock fraud attorneys will undertake on your behalf:

  • A stock fraud attorney will help you understand the finer points of stock fraud. For example, an experienced attorney in this field will be able to explain to you the various types of investment stock fraud, such as churning (excessive trading in the hopes of obtaining financial gain), fraudulent account documentation, and due diligence failure.

svFlorida stock broker fraud attorneys well understand the underpinnings of the 2012 case of the U.S. Securities and Exchange Commission(SEC) versus First Resource Group, LLC, in which company principal David H. Stern was “charged with 3 counts of fraud.”  The crime of fraud, in general, consists of deliberate misrepresentations–or omissions–of facts in order to profit, often at the expense of others.

In this case–Mr. Stern, of Florida, set himself up in 2008 as a stockbroker when, in reality, his company had never been “registered with the SEC.” He sold stocks using “instruments of interstate commerce and the U.S. mail to knowingly and recklessly employ devices, schemes, or artifices to defraud investors.”  David Stern’s “devices and schemes” played out as follows:

Signing a contract with 2 companies to “solicit investors” for their stock, Stern sought to aid TrinityCare Senior Living, Inc., which built and managed senior-care housing and Cytta Corp., which composed medical data software. He was given 150,000 shares of TrinityCare and 200,000 shares of Cytta for his trouble.

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