Securities Fraud

Securities Fraud Attorneys: Recovering Losses from Investment Fraud Nationwide

Losing your hard-earned money because of the deceptive practices of a stockbroker or financial advisor is a devastating experience. At Iorio Law PLLC, we understand the complexities of securities law and represent investors across the United States who have lost money due to securities fraud, stockbroker misconduct, or deceptive financial practices.

Securities fraud, also known as investment fraud, is a broad term that covers a range of illegal activities involving the deception of investors or the manipulation of financial markets. This can include anything from a broker making false statements to a large-scale Ponzi scheme. The core of securities fraud is a breach of trust, where a broker or firm prioritizes its own interests over those of its clients.

Led by experienced New York securities arbitration attorney August M. Iorio, our firm has successfully recovered nearly $100 million for individual and institutional investors. If you suspect fraud, we can assist you in pursuing compensation through FINRA arbitration or other legal forums.

📞 Call us today at (646) 330-4624 or contact us for a free, confidential consultation.

What Is Securities Fraud?

Securities fraud, also known as investment fraud, occurs when financial professionals or firms deceive investors using false information, misleading omissions, or manipulative tactics to induce investments or trades. This violation of federal and state securities laws, including the Securities Exchange Act of 1934 and FINRA rules, can result in significant financial losses for unsuspecting investors.

Unlike simple negligence, securities fraud often involves intentional deceit or reckless disregard for the truth. Common perpetrators include stockbrokers, financial advisors, brokerage firms, and even issuers of securities. Victims range from retail investors saving for retirement to institutional clients managing large portfolios.

At Iorio Law PLLC, we specialize in uncovering these schemes and pursuing maximum recovery through securities arbitration. Our understanding of complex financial products and regulatory standards allows us to build strong cases that expose fraud and secure compensation for your losses.

Common Types of Securities Fraud We Handle

Securities fraud takes many forms, but our experienced team has successfully represented clients in a wide array of claims. Here are some of the most prevalent types:

• Misrepresentation and Omissions: This is one of the most common forms of securities fraud. It occurs when a broker or investment advisor provides false information or withholds material information about an investment, including key information about the investment’s risks, features, fees, or performance.
• Market Manipulation: This includes illegal actions designed to artificially affect a security’s price or behavior, such as the trading restrictions imposed by Robinhood in 2021.
• Unauthorized Trading: Your broker must have your permission to buy or sell securities in your account unless you have given them discretionary authority in writing. Any trades made without your consent are considered unauthorized.
• Churning (Excessive Trading): This is when a broker makes an excessive number of trades in a client’s account, not to benefit the client, but to generate commissions for themselves.
• Ponzi Schemes and Pyramid Schemes: These fraudulent investment operations pay returns to earlier investors with new capital from subsequent investors, rather than from legitimate investment profits.
• Pump-and-Dump Schemes: This involves artificially inflating the price of a stock (pumping) through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price (dumping). Fraudsters often artificially inflate a stock’s price through false hype.
• Selling Away: This occurs when a broker sells an investment that has not been approved by their firm, operating outside of normal supervisory channels.
• Misappropriation of Client Funds: This is the illegal theft or conversion of an investor’s money or assets by a financial professional.
• Offering Unregistered Securities: This involves selling investments, such as certain private placements or promissory notes, that have not been registered with the SEC as required by law.
• Insider Trading: Illegal use of non-public information to trade securities, harming retail investors who lack access to the same data.
• Accounting Fraud: Companies manipulate financial statements to mislead investors about their health, leading to inflated stock prices and eventual crashes.

Securities fraud can occur at any stage of the investment process: during solicitation, purchase, ongoing account management, or liquidation. Regardless of the type, the common denominator is that the investor was misled or taken advantage of by someone who owed them a duty of honesty and care.

In our practice, we’ve seen fraud involving complex products like alternative investments. For instance, in cases similar to the GWG L Bonds scandal—where investors were sold high-risk, illiquid bonds without proper risk disclosure—August M. Iorio has recovered over $3.5 million for affected clients.

We’ve achieved landmark results, including the nation’s first FINRA arbitration award against Robinhood for its 2021 trading restrictions—a case involving misleading practices that harmed retail investors.

📚 Learn more: Robinhood Trading Restrictions Case Result

Common Red Flags of Securities Fraud

Recognizing securities fraud early can preserve your ability to recover losses. Watch for these red flags:

• Guaranteed High Returns with Low Risk: Your financial advisor promised “guaranteed” or “risk-free” returns. Legitimate investments rarely promise outsized gains without commensurate risk.
• Pressure to Invest Quickly: You were pressured to act quickly without receiving written disclosures. Fraudsters create urgency to prevent due diligence.
• Unexplained Losses or Account Discrepancies: You suffered sudden, unexplained losses in supposedly conservative products, or trades in your account that you didn’t authorize.
• Lack of Transparency: Your broker discouraged you from asking questions or contacting their firm directly. Vague explanations about how your money is invested or evasive responses to questions are another red flag. As is your broker refusing to provide documentation or performance updates.
• Unsolicited Investment Offers: Cold calls, emails, or social media pitches promoting “exclusive” opportunities.
• Conflicts of Interest: Your advisor benefits more from the recommendation (e.g., high commissions) than you do.

If these sound familiar, don’t blame yourself—fraudsters are skilled manipulators. Fraud isn’t always obvious, and it often hides behind industry jargon or overly complex products. Our team conducts a meticulous forensic analysis of your account activity, communications, and investment documentation to uncover fraud and build your case.

Who Commits Securities Fraud?

Securities fraud may be committed by:

• Stockbrokers and investment advisors
• Broker-dealer firms
• Investment advisory firms (RIAs)
• Hedge fund managers or portfolio managers
• Corporate insiders or executives
• Unlicensed individuals posing as professionals

Some fraudsters act alone, while others operate as part of a broader scheme, sometimes involving multiple advisors or even entire firms failing in their duty to supervise.

Can I Recover My Losses from Securities Fraud?

Yes. If you’ve lost money due to securities fraud, you may be able to recover damages through FINRA arbitration, AAA/JAMS arbitration, or state/federal litigation.

Most investor agreements include mandatory arbitration clauses, meaning your case will likely be decided in a private forum such as FINRA, rather than in court. At Iorio Law PLLC, we handle every stage of the arbitration process, including:

✅ Claim investigation and preparation
✅ Filing a detailed Statement of Claim
✅ Arbitrator selection and discovery
✅ Mediation and settlement negotiation
✅ Final arbitration hearing (if necessary)

We operate on a contingency fee basis—you pay no legal fees unless we recover money for you.

Why Choose Iorio Law PLLC for Your Securities Fraud Claim?

• Exclusive Investor Focus: We never represent brokerage firms—our loyalty is solely to you.
• Proven Results: Nearly $100 million recovered in over 700 cases, including multi-million-dollar fraud recoveries.
• FINRA Arbitration Expertise: We’ve handled hundreds of securities arbitration cases across the country and understand the nuances that can make or break a claim.
• Nationwide Reach: Based in New York but licensed and experienced in representing clients across all 50 states.
• Leadership in Investor Protection: Attorney August M. Iorio is a Director of the Public Investors Advocate Bar Association (PIABA), a national organization committed to investor rights.

Clients rave about our empathy and results: “August’s guidance was key to a favorable outcome, and his empathy made all the difference.”

Get a Free Consultation | You Have Legal Rights

If you believe your investment losses were the result of fraud, deceit, or concealment, you are not alone, and you are not powerless. Securities fraud is a violation of federal law, FINRA regulations, and basic trust.

At Iorio Law PLLC, we’ll explain your legal options clearly, investigate your claim thoroughly, and fight relentlessly for your recovery.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007
🖊️ Free Case Review: Contact Form

Frequently Asked Questions (FAQs) About Securities Fraud

What is the statute of limitations for securities fraud claims?

Most FINRA claims must be filed within six years of the fraudulent act, but discovery rules may extend this. State laws vary—consult us promptly to avoid missing deadlines.

Can I recover losses from securities fraud without going to court?

It depends on your relationship with the bad actor and the terms of the agreement governing the relationship, if any.  Most cases involving broker-dealers and registered investment advisors resolve through arbitration, which can be faster and more private than litigation.

How much does it cost to hire a securities fraud attorney?

At Iorio Law PLLC, we work on contingency—you pay nothing unless we win.

What damages can I recover in a securities fraud case?

Recovery can vary depending on applicable state laws. However, it is common to seek compensatory damages for losses, interest, punitive damages in egregious cases, and attorney’s fees.

Is securities fraud the same as broker negligence?

No, fraud involves intent or recklessness, while negligence is a failure to meet standards like suitability.

Take Action Against Securities Fraud Today

Don’t let fraudsters escape accountability. If you suspect securities fraud has caused your investment losses, contact Iorio Law PLLC for a free consultation. We’re here to level the playing field and fight for the justice you deserve.

☎ Call: (646) 330-4624 | ✉ Email: info@iorio.law | : Online Submission: Contact Form

📍Location: One World Trade Center, 85th Floor, New York, NY 10007 | Serving Investors Nationwide

Your financial future starts with one call. Let our dedicated securities fraud attorneys advocate for you.