Fraud and Misrepresentation

New York Attorney Skilled in Pursuing Securities Litigation Nationwide

While all investments carry some degree of risk, investors should be able to rely on a broker’s or financial advisor’s advice when weighing whether to buy or sell securities. When a broker or financial advisor provides an investor with false or incomplete information regarding an investment, it may constitute fraud or misrepresentation. Securities fraud and misrepresentation can result in significant financial losses. If you were financially harmed because of an investment professional’s misrepresentation or fraud, New York securities fraud lawyer Irwin Weltz can assess your case to determine whether you may be able to pursue damages from the party that caused your harm. He regularly represents parties in arbitration and will work aggressively to help you pursue compensation for your financial losses.

Proving Fraud by an Investment Professional

Brokers and financial advisors must act in the best interests of their clients. One of the essential elements of this duty is the obligation to provide investors with thorough and accurate information regarding investments. Furthermore, a broker or financial advisor should complete a securities transaction only if the transaction comports with the client’s financial goals and resources. When brokers and investment advisors breach the duties owed to their clients by engaging in deceptive practices, they may be committing fraud. Examples of actions that may constitute fraud include providing inaccurate information to a client regarding an investment, engaging in overtrading, running a Ponzi scheme, and embezzlement. A securities fraud attorney in New York or elsewhere can help determine whether a certain action constituted fraud.

Rule 10b-5 of the Securities Exchange Act specifically prohibits brokers and financial advisors from engaging in fraudulent practices or making untrue statements, and courts have held that Rule 10b-5 grants individuals a private right to sue for fraud or misrepresentation. An investor seeking to hold an investment professional liable for fraud must first prove that the investment professional knowingly made a false representation of a material fact. A material fact is any information that is essential for weighing the appropriateness of an investment. The investor must then show that the investment professional made the misrepresentation with the intent of committing fraud or misleading the investor. Lastly, the investor must show that they relied on the false information in making an investment decision and that they suffered financial harm as a result of the reliance.

Proving that an investment professional intentionally defrauded an investor can be challenging. If you were harmed by securities fraud, you should consult a New York securities fraud attorney to analyze whether you may be able to pursue a claim against the investment professional who misled you.

Proving Harm Caused by Misrepresentation

Even if the evidence is insufficient to prove that a broker or financial advisor meant to defraud an investor, an investor who was provided with incomplete or inaccurate information from a broker or financial advisor may be able to pursue a misrepresentation claim. The elements of a misrepresentation claim are the same as a fraud claim, except that an investor alleging misrepresentation does not need to prove that the broker or financial advisor acted with the intent to defraud or mislead the investor. A securities attorney can analyze your accounts and documents regarding your transactional history to determine your best option for seeking damages.

Explore Your Options with a Skilled Attorney

Proving that an investment professional should be held liable for harm caused by fraud or misrepresentation is complicated and requires a thorough analysis of the relevant facts and law. Attorney Irwin Weltz has more than 25 years of experience representing parties in FINRA arbitration proceedings and securities litigation. Attorney Weltz is mindful of the dramatic impact that financial losses can have on a person’s life and will work tirelessly to help you recover any compensation that you may be owed for your losses. Weltz Law can be contacted at 877-935-8952 or through the online form to schedule a meeting with a securities fraud lawyer in New York and discuss your options for seeking recourse.

Client Reviews
"Irwin has been my go-to lawyer for arbitration and regulatory matters for years. He’s smart, cost-efficient and gets results. I highly recommend him." B.D.
"Over the last few years, we have employed Irwin Weltz for a variety of functions. No matter what the issue may be Mr. Weltz responds in a timely and proactive fashion. His ability to think out of the box is second to none and has literally saved us millions of dollars. Irwin also sincerely cares about his clients. I cannot say enough good things about this man, he is simply the best!" T.A.
"Irwin Weltz was referred to me by a former colleague who worked as the Deputy General Counsel for a large, multi-national broker-dealer located in the New York metropolitan area. I had requested a referral for an attorney to handle a complicated arbitration that my firm was involved in." G.C.
"After a very negative experience with another law firm, Irwin was truly terrific in every way. He cared, he was responsive, and he guided me through a difficult time with compassion and expertise. In the end, he was successful as well in settling the lawsuit favorably and allowing me to restore focus and energy back to my family and business. I am truly grateful to Irwin and highly recommend his services." F.S.
"Irwin is the best. He successfully represented me in a number of matters, including an employment dispute. He was attentive to every aspect of my matters, always available to speak with me, gave me great advice and fought hard for me every step of the way. You want Irwin on your side!" I.S.