Stock Fraud - Savage Villoch Law

The Tell-Tale Signs That You Have Been a Victim of Stock Fraud

Savage Villoch Law, PLLC — Mon, 19 Nov 2018 17:48:47 GMT

While the stock market has been booming in recent years, 84% of stocks are held by 10% of the population. Despite this fact, there are millions of Americans that hold on to stocks and are no less susceptible to stock fraud than anyone else. Stock fraud can hit investors of all types, most especially those that aren’t as well versed in the world of trading. Here are six signs that you might have been a victim of stock fraud that you need to look out for.

1. Brokers Trading Without Your Authorization

When you hire a broker to handle your trading, you might think you’re handing them the keys to your ship. However, you’re still the one calling the shots unless you tell them otherwise. Your broker is only supposed to be buying or selling on your command. They need your permission before they act. Sometimes, brokers engage in unauthorized trading and this is when you need to be wary. Unless you’ve told them explicitly to act by their own discretion, they’re going to be breaching their own industry’s standards. It’s a violation of your rights for any broker to do anything that you didn’t grant them the authority to do. In the case that they’ve done this, your trades can be voided either by the broker or by a court of law. If you incurred major losses because of this, that money is recovered from your broker. They will pay you back because they took your money and spend it beyond their own fiduciary duty.

2. They Misrepresented Facts

If you’re not spending all day watching the markets for your job, the whole reason you have a broker is to find out information for you. It’s hard to make an intelligent decision about buying or selling a stock unless you have as much information as a stockbroker has. Anyone who trades without that knowledge is basically doing guesswork. While brokers aren’t always lying, some like to act on their own authority or trust their own judgment more than they judge yours. They might withhold facts or misrepresent something in order to sway your decision about a stock or an investment. Some brokers will do this maliciously while others will do so out of carelessness. If your broker has done this on purpose, they’re going to be responsible for fraud. When it results in a bad investment, your broker is liable for your loss and will be held responsible by the law.

3. They’re Churning Your Investments

Some brokers take it on themselves to start churning with your investments. They’ll make excessive trades to try to earn a commission. If you’re paying a trader based on commissions, they’ll get paid based on work regardless of how much money you make or lose. If a broker starts trading excessively, they could be churning in order to get paid, never really trying to get your investments to return very much. When a broker is given discretion and control over your investments, this can happen. You need to look out for this kind of activity because it takes advantage of your agreement. If you see your broker churning, don’t just get mad and yell at them. Your broker is committing fraud. You can take your hands off the wheel and leave it in the hands of the courts. You can sue them or you can let the law deal with them on their own.

4. They Ignore Your Instruction

The whole point of your broker taking a cut is that they’re supposed to follow your directions and listen to what you want. If you say that you want to buy or sell a stock, it’s their responsibility to act. Should they fail to do so, your losses become their responsibility. If you’re losing a lot of money based on decisions your broker made against your instruction, let them know. If they’re acting on their own benefit instead of yours, they need to be reminded of their role. Pressuring you to keep a stock against your will is unethical. Telling you to sell when you don’t want to sell is also unethical. Your instructions are the directions that guide the ship. When your broker applies improper pressure that causes an unnecessary loss, your losses are their responsibility.

5. Misappropriation Is Criminal

While it’s rare for a broker to outright lie and steal from you, misappropriation happens. In the rare case that your broker steals from you outright, they are in violation of the law in such a clear way that you don’t have to do anything. If you catch your broker forging your signature or committing identity theft to make trades on your behalf, your first step is to fire them. Take away their ability to touch another penny that belongs to you. After that, you need to call in a regulatory agency. Once in a while, a broker will try to run a scheme to take your money. This scheme involves “selling away” your stocks and investments. If your broker is working outside of the brokerage firm they work for, they could be breaking the law. In some cases, brokers have even been found selling stocks that don’t exist. This is an extreme case but has happened enough for it to be something fraud agencies look for. If you think your stock broker is committing stock fraud by misappropriating funds, you can hold them accountable.

Stock Fraud Is More Common Than You Think

Any time there’s a disparity between the people who are paying for something and the people who provide the service, there’s room for fraud. Stock fraud is one such instance that could cost you your wealth, your future, and your wellbeing. If you’re not careful, a few instances of stock fraud could upend your whole life. If you suspect fraud is afoot, follow our guide for what to do next.

Don't Fall Prey to Investment Fraud Following a Hurricane

Savage Villoch Law, PLLC — Mon, 15 Oct 2018 16:48:42 GMT

When you consider the financial toll of a hurricane or other natural disaster, losses due to investment fraud is most likely not something you would factor in. However investment fraud following a catastrophic natural event is quite prevalent. Many investors have found themselves in hot water after getting involved in investment opportunities related to hurricanes or other natural disasters. Scammers love using natural disasters to leverage investment fraud, as they are able to prey on vulnerabilities of both those directly affected by the event as well as those who want to help disaster victims. In the wake of Hurricane Michael, you may receive unsolicited investment offers purporting to provide some type of opportunity for returns. These offerings may be related to disaster relief, clean-up, or even storm prevention. While it’s possible some of these offerings may be legitimate, chances are high that they are either too good to be true or a flat-out scam.

Spotting Hurricane-related Investment Fraud

The SEC warns that, as property owners receive lump-sum payments from insurance companies, fraudulent entities seek to take advantage. Frauds and con-artists bank on uncertainty following a storm or natural disaster. They take advantage of people’s vulnerabilities promising quick fixes or instant relief efforts. Fraudulent companies will claim “miracle remedies” or create fake relief organizations promising aid in return for investment capital. Investors and those receiving lump-sum insurance claim payouts in the event of a storm or disaster should be wary of these types of investment scams. Hurricane-related investment scams typically rely on the same type of ploys to dupe investors. If you receive an unsolicited offer following a hurricane or natural disaster, keep an eye out for some of the following as it is likely a sign of investment fraud:

Unrealistic predictions of rapid, exponential growth
Reliance on facts and figures from reputable news sources to reinforce investment claims
Reported affiliation with known government agencies or humanitarian/relief organizations
The offer attempts to pass off a common press release as “insider” info
Pressure to act quickly on a time-sensitive offer

Avoiding Investment Scams:

Spam email promising high returns for investing in clean-up or relief efforts
Pump-and-dump schemes: circulation of false or misleading news that promotes a certain product or service, inflating its stock and then dumping it before the trend peaks
Ponzi schemes: investment scams that use investor money to pay-off prior investors
Always ask thorough questions before involving yourself in an investment opportunity
Make sure to know exactly what you are getting in a claim payout. If receiving a lump-sum payment, know beforehand what the money will need to cover for you and your family

How to Confront Unsolicited Offers

Investigate the investment opportunity
- You should never rely solely on information you receive in an unsolicited email, text message or cold call even if the information seems convincing. It’s easy for fraudsters to circulate fraudulent stock promotions through exaggerated claims about an offering’s investment value. If it sounds too good to be true, it probably is. Before agreeing to any investment offer, make sure you not only investigate the opportunity, but also the the entity behind it.
Find out where the message originated
- Many investment “insiders” soliciting investment opportunities are actually paid promoters. If you receive an offer, there are ways you can find out who is sending you the information and what they are getting in return for it. Look closely at the fine print of an investment offering the next time you receive one. The fine print will indicate whether the sender is earning a cash incentive or other payout for disseminating information.
Find out where the stock trades
- Most unsolicited stock recommendations involve stocks that can’t meet the listing requirements of The Nasdaq Stock Market, the New York Stock Exchange or other major U.S. stock exchanges. Instead, these stocks tend to be quoted on an over-the-counter (OTC) quotation platform like the OTC Bulletin Board (OTCBB) or the OTC Link Alternative Trading System (ATS) operated by OTC Markets Group, Inc. Companies that list their stocks on registered exchanges must meet minimum listing standards. For example, they must have minimum amounts of net assets and minimum numbers of shareholders. In contrast, companies quoted on the OTCBB or OTC Link generally do not have to meet any minimum listing standards (although companies quoted on the OTCBB, OTC Link’s OTCQX and OTCQB marketplaces are subject to some initial and ongoing requirements).
Investigate the firm or entity’s SEC filings
- Most public companies file reports with the SEC. Check the SEC’s EDGAR database to find out whether the company files with the SEC. Read the reports and verify any information you have heard about the company. But remember, the fact that a company that has registered its securities or has filed reports with the SEC doesn’t mean that the company will be a good investment.

Additional Investor Resources

You have enough to worry about following a storm or disaster. Don’t let the threat of investment scams be one of them. Protect yourself and your finances. If someone approaches you with an investment opportunity following Hurricane Matthew or another natural disaster, contact Savage Villoch Law, PLLC and make sure your investment is protected. You can also check out our blog for even more information about other types of stock and securities fraud and tips to prevent it.

How to Know Short and Distort Manipulation When You See It

Savage Villoch Law, PLLC — Sat, 15 Sep 2018 16:00:33 GMT

You know that the factors affecting an investment’s valuation go behind standard data and metrics. Often, an investment’s value can hinge largely on highly subjective factors, like public perception. The “reputation” of an asset or security can either signal an attractive investment opportunity or drive away investors. You’ve probably heard of pump and dump schemes; a form of stock manipulation wherein essential information about an asset may be misrepresented or misreported in order to artificially drive-up its value before the scammer dumps their shares. In these types of schemes, fraudsters create a buy frenzy by promoting a stock as a desirable investment. Well there’s also an inverse to this type of investment fraud and it’s called a short and distort scam. In short and distort scams, fraudsters will artificially drive down an asset’s investment value by spreading false or unfounded negative press about it. You probably don’t like to think that you are one who is too easily swayed by what others say or do, and that may be true. But the way information shapes our perceptions can be subtle. Sometimes, it’s not as clear as someone telling you what decision you should make. Fraudsters know this, and they know how to conceal and deceive too. Scammers can use many tricks to dupe investors during the decision-making process. In word-of-mouth scams like pump and dump or short and distort schemes, scammers rely on information appearing to come from a credible source. You wouldn’t hinge your investment decision on the advice of a stranger, but what if the suggestion to buy or sell comes from someone you trust?

How to Spot a Short and Distort Scam

The Securities and Exchange Commission (SEC) actually reports short and distort scams as a persistent, growing problem. The issue is that these types of scams subsist on an assumed position of authority. Essentially, theses scams are perpetrated one of two ways:

The fraudster may hide behind false identity or present themselves as being in association with a legitimate source.
The source of the information has legitimate authority or esteem but may be corrupted and acting to suit their own interests.

Whatever the case, it can be extremely difficult to spot these types of scams. These types of scams exploit our vulnerabilities; our doubts and trust in others. But you can avoid falling victim to them. There are ways to spot word-of-mouth scams and investment practices you can adopt to mitigate risks.

Find out where your information is coming from

As we mentioned above, there are essentially two potential sources for short and distort scams. Whatever (or whomever) the apparent source, it’s important that you actually find out where the information you are receiving originated and to what extent that information is valid. The internet age has made it remarkably easy for people to hide behind false names and identities. Scammers especially have been able to capitalize on access to these new technologies.

Be wary of email and/or social media campaigns

If you start seeing negative press about a stock or security online, make sure you investigate the poster.

What is their post history? If there is limited to no prior history of posts, it’s a good sign the account was set up recently.
Examine the content. Look for typos or inconsistencies in the text. A legitimate source of information would have a consistent tone and style.

Determine motives

Even if you know that the source of the information you are receiving is legitimate, you need to make sure the information itself is valid. To do this, you need to understand the motives behind that individual or entity disseminating that information. Ask yourself what they may have to gain by sharing negative press about a stock or security. Is that person/entity taking a short-sell position? If so, that’s a clear indication of short and distort manipulation.

Celebrity Endorsements
- We’ve all seen ads for products featuring celebrity endorsements and it’s no different with investment-based products. While celebrity endorsements are meant to lend credibility to a product, it by no means ensures a product’s legitimacy or usefulness. This is especially true with investment products. Find out more here.
Aggressive Solicitation Practices
- Aggressive or unwarranted solicitation of services or information should be an immediate red-flag. If you have been receiving repeated calls, emails or requests for correspondence from an individual claiming to be a broker-dealer associated with your account, you need to verify they’re identity.

Do your investment due diligence

Regardless of whether a word-of-mouth scam is being perpetrated, you should always do your homework on a stock or asset before making any financial decision. Basing your decision solely off the advice of others – or worse, unsubstantiated rumors – is foolish and dangerous. You should have a fundamental understanding of the performance and status of your investment portfolio. That way, you are able to verify the validity of negative claims against a stock or security.

Additional Resources

If you’re looking for in-depth resources for investment advice, news and tips, check out our blog! You can also visit the SEC website for their extensive archive of investor education materials. Contact our team if you believe that you may have suffered an investment loss due to a short and distort manipulation or other word-of-mouth scam. We can help sort through your claim and discuss your options, including whether you can sue your stockbroker and if you are entitled to investment-loss recovery.

Links for investors

Investing 101: Don’t Fall Victim to Fraudulent Stock Promotions

Savage Villoch Law, PLLC — Wed, 30 May 2018 16:30:07 GMT

You know that stock investing comes with risks. Along with anticipated risks associated with the nature of stock trading, you also face risks associated with fraud. Some of the most widespread forms of stock fraud are carried out through fraudulent stock promotions.

What Are Fraudulent Stock Promotions?

In fraudulent stock promotion scams, fraudsters hype a certain stock to generate investor buzz. Once a buy frenzy occurs, fraudsters will quickly sell off their shares, leaving investors to take the hit. Most successful fraudulent stock promotions are carried out by those perceived as “insiders” in the investment world and the stocks they push represent no real business operations.

Beware of Penny Stock Fraud

Penny stocks are a huge target for scammers. They and other microcap stocks are especially susceptible to fraudulent stock promotions. Because of the low capital risk and high turnover of these small businesses represented by penny stocks, there is little public information readily available on many of them. As with any kind of investment scam, fraudulent stock promotions rely on deception and investor ignorance. But you don’t have to fall victim to fraudulent stock promotions. All it takes are the right resources and education. With that, you can spot signs of fraudulent stock promotions and other types of investment fraud – and stop them before they happen.

Fraudulent Stock Promotions Come in Many Forms

While you should keep in mind that not all stock promotions are illegal, fraudsters take advantage of vulnerable networks to dupe investors. Stock promotions are often generated by paid promoters or some insider associated with the stock who stands to gain from a high-dollar stock sell-off. Stock promotions, fraudulent or not, do regularly appear through legitimate channels. This makes it all the more difficult to spot the scams. They can come through a variety of media whether it be print, email or social media platforms. You may see stock promotions come through any of the following channels:

Email solicitations

You may get an email promoting a great investment opportunity, offering you the chance to act. It may even appear to come from a legitimate source… it isn’t. Scammers love using email as a way to fish for unwitting investors. They can hide behind a false name and easily edit an email to make it seem official. You just need to remember that know legitimate investment opportunity will come through email – let alone an unsolicited one.

Online ads or “pop-ups”

With recent data breaches and cybersecurity mishaps, we’re starting to see just how much of our time spent online is tracked and analyzed. Scammers are taking advantage of online data tracking to create target ads offering fraudulent stock promotions. You should never click a pop-up or online ad promoting a stock opportunity.

Social media posts

Social media can be a great resource for tracking your favorite thought leaders and investment circles and keeping up to date on current trends. It can also be a breeding ground for fraudulent stock promotions. We’ve all seen how easy it is for hackers to create a fake profile and populate it with automated followers and content. If you see a stock promotion or other investment opportunity in your social media feed, investigate it. Are the media links legitimate? Do you recognize this as the regular type of content from that poster?

Investment newsletters

These can be especially tricky, because a promoter may pay a publisher to run a stock promotion in their investment newsletter. If you subscribe to an investment newsletter or periodical, you probably have seen these stock promotions. Remember, what you are seeing are essentially paid advertisements – not unbiased stock recommendations. Scammers may also generate and distribute fake newsletters to try and dupe investors. If you sign up for an investment newsletter, make sure you’ve first looked into the background and standing of the newsletter and verified its legitimacy. You should never act on the advice of an investment newsletter you receive unsolicited.

Direct-mail campaigns

While social media and other online platforms may be the focus of hype and attention, you should never underestimate the power of good, old mail. Scammers have long relied on direct mail to defraud investors. With direct mail, fraudsters can generate convincing, high-quality “investment portfolios” promoting stocks and other investment opportunities.

Fraudulent Stock Promotion Red Flags

If you do happen to receive an investment offering or stock promotion in one of the above listed forms, there are some sure-fire signs you can look out for to tell if it’s fraudulent:

Look to see who’s promoting the stock; Find out if they have been suspended from promoting or trading on other stocks. You can view a list of all of the SEC’s trading suspensions here.
Check out the stock’s promotional history – have past announcements actually occurred? If a press release promotes something that will reflect well on the stock’s performance, make sure you follow up to see whether those things actually happen/have happened.
Research the company’s registered business history. If you see that the business name or type has changed frequently, it’s most likely a sign of fraud.

If you see any of these signs, take them as a major red flag. You should report fraudulent stock promotions when you see them. You can report potential or suspected securities fraud to the SEC directly: https://www.sec.gov/tcr

How a Stock Fraud Attorney Can Help You with an Investment-Loss

If you can spot fraudulent stock promotions or investment scams ahead of time, you’ll avoid a lot of trouble down the road. However, investment fraud isn’t always so clear. Fraudsters are getting more detailed with scams and emerging technologies make some securities and investment assets more vulnerable to fraud. If you find that you or a loved one has become a victim of fraud, know that you do have options. A qualified stock fraud attorney can help you filing a claim, recover investment losses and even bring the fraudster to justice. Our dedicated attorneys have been protecting Florida stock investors from fraud for over 20 years. Contact our team today if you believe you have been victimized by a stock fraud scam.

Investor Education: Know Your Order Types Before You Buy and Sell

Savage Villoch Law, PLLC — Fri, 21 Jul 2017 19:16:03 GMT

Maybe you want to make it big as an investor. Maybe you just want a nest egg for retirement or financial security for your family. Whatever the reasons, thousands of Americans everyday make their first steps to becoming active investors. Before hitting the market though, there’s a lot would-be investors need to know; like understanding the different types of stock and securities investments, and how active an investment approach you’d like to take. Once you’ve got that down, you’ve got to know the buy-and-sell process of trading. For that, you’ve got to know your order types. While order types might vary in availability from firm to firm and among individual brokers, there are some common order types that everyone should know. That’s why the SEC has published an investor bulletin outlining common buy-and-sell order types that you should be aware of before you start investing.

Common Buy-and-Sell Order Types

Market Order

Market orders are orders to buy or sell a stock at the best available price, i.e. market price. While market orders are typically executed immediately, it’s important to know that the price something last traded at is not necessarily the price you will get.

Limit Order

A limit order requires that a stock be bought or sold at a specific price or better.

Buy limit orders can only be executed if the order is at limit price or lower
Sell limit orders can only be executed if the order is at limit price or higher

It’s important to note that limit order may not always be executed. They depend on the market price reaching the set limit price.

Stop Order

Stop orders, also called stop-loss orders are orders to buy or sell when a stock reaches a specified value. When that value is reached, the order then acts as a regular market order.

Buy stop orders are entered at prices above current market prices
Sell stop orders are entered at prices below current market prices

Investor Resources

These represent only the three most common order types available. You can also combine order types to further suit your investing needs. To learn more about different order types and more on these common order types, read the full SEC bulletin. Check out our archives for even more news and tips!

Why Big Banks Have a Financial Doomsday Plan

Savage Villoch Law, PLLC — Fri, 30 Jun 2017 16:49:10 GMT

Amid the fallout of 2008, when the nation’s banking giants toppled and our economy was sent reeling, Federal legislators and regulators decided that changes were needed. Most of these changes took shape as the Dodd-Frank Act, which provide the framework for much of our current banking regulation and oversight. You’re probably familiar with Dodd-Frank, at least in part. It’s been a near constant topic of discussion on both Wall Street and Capitol Hill since it took effect. And this conversation has only increased during the Trump Administration.

However, did you know that part of Dodd-Frank requires banks to submit a financial doomsday plan outlining how they will dissolve in the event of a catastrophic collapse?

Essentially, they are “living wills” that show what and how assets would be liquidated in a bankruptcy. The big catch is, these plans cannot rely on taxpayer bailouts. Banks must submit practical, realistic plans that leave no room for optimism.

So who’s checking this financial doomsday plan?

Banks must submit their “wills” to The Federal Reserve and the Federal Deposit Insurance Corporation for their review and approval. These are rigid reviews that show no leniency towards a bank. And its not just a an informal thing that banks submit as a symbolic gesture. These plans play a significant role in a bank’s continued operational existence. Dodd-Frank allows regulators to take extensive measures to make sure that a bank’s dissolution plan is credible.

Which banks were required to submit a financial doomsday plan this year?

Most of the nations top big banks were required to submit plans, including:

Bank of America
Bank of New York Mellon
Citigroup
Goldman Sachs
JP Morgan
Morgan Stanley
State Street Corp
Wells Fargo

American Insurance Group and Prudential Financial were given one-year extensions to submit a workable plan.

Investor Resources

You can read each bank’s financial doomsday plan on the Fed’s website. For more legal and financial news, check out our blog. Contact our investment-loss recovery attorneys if you believe you have been the victim of stock fraud or broker misconduct.

SEC Warns of Form 4 Investment Scams

Savage Villoch Law, PLLC — Mon, 07 Nov 2016 22:00:00 GMT

The Securities and Exchange Commission (SEC) has announced that investors should be on the lookout for fraudulent claims using Forms 4. A Form 4 is filed when investment insiders (officers, directors and anyone holding 10% or more in company securities) execute transactions. A Form 4, which must be filed within two days following a transaction, serves to inform the public of the insider’s transactions in company stock and other securities. Apparently, scammers and fraudsters are posing as brokers and providing false Forms 4 and other official documentation to investors in order to sell them fake shares. By using forms that appear to be sent from the SEC and other regulatory agencies, scammers seek to legitimize fraudulent claims. There are some things investors can look out for if they have been contacted by someone claiming to be a broker or have received a Form 4 or other official-looking documentation confirming an unfamiliar transaction.

Spotting a False Form 4 Filing

The SEC does not send trade confirmations to investors
- This remains the duty of the broker-dealer who completed the transaction
A Form 4 should not serve as a confirmation of transaction
- Forms 4 are meant to serve as transaction disclosures only, not confirmation
Confirm Form 4 filings
- SEC-supplied database EDGAR can verify the legitimacy of a supposed Form 4 filed on your behalf

Spotting Fraudulent SEC Documentation

Many investment scams are passed off using official-looking documentation. Below are a couple tips for spotting a fraudulent correspondence for scammers.

Check Broker Registration
- If you have been contacted by someone claiming to be a broker, you can check their background and registration status.
- Use the SEC’s Investment Adviser Public Disclosure database to search any financial professional
Confirm Domain Addresses
- Fraudsters will often send correspondence that appears to be from an official source, such as the SEC.
- SEC states that many Form 4 scams were perpetrated through emails linked to edgarlink.us domain name.
- Be wary of any seemingly governmental emails that don’t end in .gov, .mil, or .fed.us

CFPB Database Reveals Wolves of Wall Street

Savage Villoch Law, PLLC — Wed, 07 Sep 2016 16:27:06 GMT

Jordan Belfort may have bestowed the title ‘Wolf of Wall Street’ on himself, but we all know that wolves travel in packs – and it looks like Wall Street is full of them. The Consumer Financial Protection Bureau (CFPB) a financial watch-dog group has recently released a database outlining complaints against several of the nation’s top banking and investment groups. The database, which focuses heavily on Wall Street stalwarts, including Citibank (part of Citigroup) and Chase (of JPMorgan Chase), is chock full of consumer complaints against these financial giants in regards to predatory banking tactics. By navigating a simple search by name of any number of these banks, consumers can find mass-stores of complaints lodged against them, most stemming from the 1999 repeal of the Glass-Steagall Act. Instituted in 1933, the Glass-Steagell Act served to prevent banks holding insured deposits from affiliating with investment banks and brokerage firms on Wall Street. The Glass-Steagall Act protected consumers from falling prey to stock fraud and financial abuse from these entities. Under pressure from large Wall Street firms, such as Citigroup, the Act was repealed under the Clinton Administration, ushering in a new era of gross misconduct and financial abuse on an unwitting public and laying the groundwork for the eventual economic crash in 2008. The newly formed “financial supermarkets” exercised their power by enforcing strict, sub-prime credit interest rates, while severely limiting the capacity of consumers to generate interest yields on investments, savings and CD’s. One complaint pulled from the CFPB database, dated Aug. 20, 2016, states that Citibank increased the annual percentage rate to 29.99% whereas a recent search of Citibank’s interest-bearing savings accounts show an interest rate accrual of only 0.01% for accounts under $10,000. It is apparent that these mega-firms have not heeded the lessons of the 2008 crash and, if left unchecked, will continue to target the public for their own advantage. This election season, Republicans and Democrats have made it a bipartisan effort to ensure that these kinds of atrocities are stopped, with both parties pushing for the reinstatement of the Glass-Steagall Act.

Seven Reasons You May Need a Stock Fraud Attorney

Savage Villoch Law, PLLC — Sat, 19 Mar 2016 11:54:55 GMT

When 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. Not Following Instructions Brokers are typically required to follow a client’s instructions when it comes time to buying and selling stock. If a broker fails to do so, this is often grounds for the client to recover losses. Unauthorized Trading This means the broker bought or sold securities without a client’s verbal or written permission. Negligence Brokers are negligent when they fail to act in the same manner that a reasonable and prudent broker would have acted given the same set of circumstances. Concentration A broker should recommend that a client’s account be diversified among several different investments, classes, and industries. A broker who does not properly recommend diversification can find themselves liable for at least some of a client’s losses. Unsuitability This term refers to a broker’s failure to make recommendations based on a client’s needs, objectives, and risk tolerance. Failure to Supervise By law, brokerage firms must supervise and regulate their brokers as well as routinely review their activities. When a broker is found guilty of stockbroker fraud, the firm may also be responsible for the investor’s losses. If you think you have been the victim of stock fraud, please contact us today for a free consultation.

How do you know when you need a stock fraud lawyer?

Savage Villoch Law, PLLC — Sat, 30 Jan 2016 16:48:56 GMT

If you have been the victim of broker misconduct, you may be wondering if you need a stock fraud lawyer. Here are just a few things that indicate that you need to obtain the services of an experienced stock fraud lawyer:

Your broker was involved in bond fraud & misconduct. If your broker did not make you aware of any of the inherent risks associated with investing in the bonds, you will need to engage the services of a professional stock fraud attorney.
Your broker engaged in stock churning. Churning is the process in which your accounts are excessively traded in order to drive the prices up. If this is what your broker has done, you will need to engage the services of a professional stock fraud attorney.
Your broker failed to diversify your portfolio. While your investment needs are certainly different from the next investor’s needs, it is the responsibility of your broker to recommend that your portfolio be as diverse as possible. If your broker failed to diversify your portfolio — especially if he failed to recommend it to you — you will need to engage the services of a professional stock fraud attorney.
Finally, but no less importantly, if your broker engaged in any form of unauthorized trading, you will need to engage the services of a professional stock fraud attorney.

Savage Villoch, PLLC offers experienced and highly qualified legal services to individuals, business owners, stock market investors, stockbrokers, and brokerage firms. Located in Tampa, Florida, we have a regional, national, and global practice with a focus on bankruptcy, business, and securities issues. Contact us today if you need to engage the services of a professional stock fraud attorney.

What will a stock fraud attorney do for you?

Savage Villoch Law, PLLC — Sat, 23 Jan 2016 16:47:36 GMT

If 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.
A stock fraud attorney is not afraid to litigate on your behalf. Even though an attorney will do whatever it takes to prevent your case from going to court — in the hopes of reaching a settlement — s/he will not be afraid to litigate on your behalf when it’s pertinent.
Finally, but no less importantly, an experienced stock fraud attorney will be well versed in both state and Federal laws that govern stock fraud.

Savage Villoch, PLLC offers experienced and highly qualified legal services to individuals, business owners, stock market investors, stockbrokers, and brokerage firms. Located in Tampa, Florida, we have a regional, national, and global practice with a focus on bankruptcy, business, and securities issues. Contact us today for a free, no obligation consultation about your case.

Stock fraud lawyer warns: retirees and snowbirds often targeted by securities fraudsters

Savage Villoch Law, PLLC — Sat, 14 Nov 2015 00:56:24 GMT

For many retirees, the idea of spending their leisure years in Florida is a goal for which they have striven for many years. According to U.S. News & World Report’s analysis of 2010 U.S. Census Bureau data, the “Sunshine State” has the greatest proportion of people who are at least 65 (17.3%). And that doesn’t necessarily include “snowbirds” who might spend a considerable amount of the winter months in Florida away from their normal array of trusted advisers such as lawyers, investment advisers and other financial professionals who remain behind in the snow. Whether they are new residents or snowbirds, and like many other Americans, some of Florida’s newest senior citizens probably are hoping to make some new investments to help them recover ground lost during the difficult economic times of the last five years, and that makes them extra-vulnerable to securities fraud schemes targeting the elderly. One such scheme involving the stock of two companies, Miami Beach-based Thought Development Inc. and Virgin Gaming, just resulted in two Boca Raton men being among eight defendants being charged in federal court with conspiracy to commit federal mail and wire fraud. PalmBeachCoast.com recently reported that Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in charge of the FBI’s Miami field office are prosecuting the Boca Raton pair on charges based on what Ferrer described as “exorbitant, undisclosed commissions” and misrepresentation of the technology involved, which allegedly projected a green laser line on a football field visible in the stadium to players and fans as well as to television viewers. Ferrer and Piro also took the position that the promoters also failed to mention a pretty significant defect, which was that use of the technology posed a risk of blindness to the players. U.S. Attorney Ferrer stressed that his office strives to prevent the “victimization” of Florida’s elderly residents. As effective as that assistance is, of course, it’s still only half of the answer. Florida’s seniors also need the tremendous resources that can be accessed through a relationship with a Florida stock fraud lawyer, who not only can fully explore options for recovery of investment-related losses but can advocate, with federal and state law enforcement officers, on behalf of Floridians who have suffered losses due to investment-related fraud where the promoters of the fraudulent scheme, like the defendants charged in the Thought Development Inc./Virgin Gaming scheme, are the target of state or federal civil or criminal prosecution. Contact us to learn more about the possibilities for pursuing recovery of losses that result from investment activities with unscrupulous promoters, brokers and other securities industry operators.

Do you need a Florida stock fraud lawyer? Contact us today!

Savage Villoch Law, PLLC — Fri, 23 Oct 2015 23:51:55 GMT

The Savage Law Firm is pleased to serve the Tampa area, especially for those residents who are in need of a Florida stock fraud lawyer. How do you know if you need a Florida stock fraud attorney? Here’s some things you need to consider:

Has your stock portfolio decreased, significantly, due to negligence or incompetence from your stock adviser? If so, you are protected by both state and federal laws against this sort of thing. As the victim of a predatory adviser, you have the right to seek restitution if your adviser is proven to be negligent, unsuitable, fraudulent, and/or illegal in his/her dealings.
Have your retirement accounts decreased, substantially, in value because of your adviser failing to act in your best interests? Under the law, you have certain protections to recover your money, which we will happily assist you in representation.
Have you lost money on any kind of investment due to the fraudulent and/or negligent actions of your adviser? If so, we will be happy to pursue full recovery of your losses, plus interest, through securities arbitration.

Losing your hard-earned money through the negligence of another person can be very distressing. However, don’t give up hope, and don’t think you don’t have any recourse to pursue remedies. Savage, Combs & Villoch, PLLC offers experienced and highly qualified legal services to individuals, business owners, stock market investors, stockbrokers, and brokerage firms. Located in Tampa, Florida, we have a regional, national, and global practice with a focus on bankruptcy, business, and securities issues. Please contact us today to schedule your free, no obligation consultation.

Fake Technology Investment Scheme Calls for Expertise from a Florida Stock Fraud Lawyer

Savage Villoch Law, PLLC — Fri, 07 Aug 2015 10:47:49 GMT

Like many investment schemes, the opportunity to invest in a Florida technology company developing a product for the NFL sounded too good to be true. In fact, it was entirely false. Now three Florida men are in prison for their roles selling shares in the fake company. Stock fraud, also known as securities fraud, is a scheme to entice investors to make buy stock using information that is incomplete, misleading, or even false. The untrue statements can be related to a company’s financial statements, or its business plans. When an investment opportunity sparks suspicion, a Florida stock fraud lawyer can help you determine what to next. In the fake NFL technology company scheme, federal prosecutors said that the victims, many of them seniors, were enticed to invest in a Miami Beach company that the fraudsters claimed was soon-to-go public, the South Florida Sun-Sentinel reported. In court, the three men admitted that they tricked investors into buying shares in the fake company. They claimed the company, “First Down Laser System,” was developing a laser line for the football field that would be visible to players and fans. They also claimed that by more quickly marking first downs in football games, more TV broadcast time would be available for advertisers. The fraudsters falsely told investors that investment returns were guaranteed, and the technology would be used by the NFL. But some investors received stocks in a completely different entity while others received nothing at all. In addition to serving prison time, the fraudsters were ordered to pay their victims more than $1.8 million in restitution. Stock fraud comes in many forms. If you have been a victim of a fraud, or if you suspect one, we can help you determine what legal courses of action are available to you. For more information, contact us.