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Philadelphia Securities Fraud Lawyers

Defending Against Securities and Financial Fraud

Whether you are a private consumer, an individual making investments for your future, or a company that relies on the expertise of investment companies, you could become a victim of securities or financial fraud. Securities and financial fraud is a crime, and victims have the right to bring suit against fraudulent bankers, credit card companies, stockbrokers, and other financial institutions. Federal and state laws protect consumers and investors from losing money to those who misrepresent themselves or practice under false pretenses.

Philadelphia insurance fraud lawyers at Axler Goldich LLC work hard to help victims of securities or financial fraud claim justice and recover their investments. Financial misrepresentation and deception is a crime as well as a civil law violation, and those who profit from it can suffer heavy penalties. The experienced and highly skilled lawyers at our firm work diligently to hold those responsible for such crimes to the highest extent of the law.

Types of Securities Fraud

Securities fraud occurs when investors are manipulated into buying or selling stock by deceptive brokers who intentionally mislead customers for their own gain. The most common types of securities fraud include embezzlement by stockbrokers, stock manipulation, insider trading, falsified financial records of public corporations, and misleading corporate auditors.

Securities fraud became a hot topic at the start of the millennium after multiple high profile cases of corporate fraud emerged. The Securities Exchange Commission (SEC), the Federal Trade Commission (FTC), and the FBI have been working hard to hold corporations and investment firms responsible for unlawful activity. According to the Securities Investor Protection Corporation (SIPC), the estimated cost of investment fraud is $10-40 billion annually in the United States, severely threatening the success of the stock and commodities markets.

There are many fraudulent methods and schemes used to commit securities fraud. Some of the most common methods include:

  • Dummy Corporations: Fraudulent investment brokers present non-existing corporations to potential investors, giving them names that closely resemble profitable companies. They then get the investor to buy shares in the non-existent corporation.
  • Internet Fraud: Pump-and-dump schemes use the internet to build marketing schemes that entice investors to buy stock in weak corporations. Once the stock price reaches a profitable level, these brokers then sell the stock before it falls. Investors who are misled in this scheme are then stuck with multiple shares of unworthy stock
  • Insider Trading: When a stock broker buys or sells stock based on information not available to the public, they are committing unlawful insider trading. In this type of securities fraud, the stock broker uses their position in the investment firm to profit from information not available publicly.
  • Accountant Fraud: This type of fraud took center stage in early 2000 when several high profile investment firms were found to be negligent in preventing false and misleading financial reports from being released by their corporate clients. The public and investors were led to believe the corporation was worth more than it was and subsequently invested unwisely.
  • Ponzi Schemes: This type of scheme is a fraudulent investment whereby an individual or organization pays returns not based off of profits from legitimate sources.

Financial Fraud

Financial fraud is a broad term for crimes such as credit card fraud, mortgage fraud, bank fraud, tax evasion, bribery, embezzlement, identity theft, money laundering, forgery, and counterfeiting. As is the case with securities fraud, financial fraud occurs when one person or business entity uses deception in a financial transaction to profit personally. Victims of financial fraud can include individual consumers, corporations, small businesses, and organizations.

One of the most common types of financial fraud involves the unauthorized use of an individual or corporate credit or debit card. With the frequency of online transactions, credit and debit card fraud has been rampant in the United States. Unauthorized use of a credit or debit card, knowingly charging more to the card than is available, and use of a stolen credit card to make purchases all constitute the crime of financial fraud.

Another growing trend in financial crime is insurance fraud. This occurs when someone intentionally deceives an insurance company for their own personal gain. Claiming accidental injuries that are greater than they are, staging accidents to profit personally, or claiming false disability for insurance benefits are all criminal activities.

Philadelphia Securities and Financial Fraud Lawyers at Axler Goldich LLC Provide Competent and Reliable Counsel and Representation

Financial and securities fraud can devastate the financial health of an individual, family, or business. If you or someone you know has been a victim of this type of crime, Philadelphia securities fraud lawyers at Axler Godich LLC can help.

Call us at 866-207-2920, or complete our online contact form to schedule a consultation today. Our offices are conveniently located in Center City Philadelphia and we serve clients throughout the United States.