Nevada Securities Fraud Lawyer
Nevada securities fraud lawyers can help investors recover funds lost due to broker fraud and misconduct. Securities fraud is unfortunately common in the Silver State. Local regulators take steps to protect investors, but once the damage has been done, investors may want a Nevada securities attorney to represent them in a FINRA arbitration case. FINRA arbitration is the standard route for recovery in securities fraud cases. Nevada investment attorneys employ their knowledge of federal and state securities statutes to compel brokerage firms to pay settlements.
Nevada Securities Laws
Blue Sky Laws bolster the existing federal laws regulating the sale and registration of securities. In Nevada, the sale of securities – otherwise known as investment contracts – must comply with the Nevada Uniform Securities Act. The Securities Act of 1933 prohibits the use of fraud, deceit, or misrepresentation in the sale of securities.
You can consult with a Nevada investment fraud attorney even if you are not certain securities fraud has taken place. Experts on state laws can provide advice tailored to the statutes in your state.
Registering Securities with the State
In Nevada, the Nevada Securities Division regulates the sale of securities. Securities sold in Nevada must register with the state. As their website states: “If you are raising capital for your business, you should assume that you need to register your offering with the Securities Division unless you have an exemption from securities registration.” Exemptions are addressed in Nevada Revised Statutes, Chapter 90.520. An example of an exemption is a security issued by the State of Nevada.
Nevada Securities Division has Compliance Investigators who conduct periodic field inspections of broker-dealers and investment advisers to ensure their compliance with state securities laws.
Registered Brokers and Investment Advisers in Nevada
Anyone who sells securities must register with the State of Nevada, unless they meet the criteria for an exemption identified in the state statutes. You can check if your broker is registered using BrokerCheck.org, or call (702) 486-2440 to speak with a Nevada Securities Division representative.
How Does Nevada Protect Investors from Securities Fraud?
The Securities Division may revoke a broker’s license and bar them from the industry. This should prohibit them from engaging in securities transactions, although fraudulent brokers may operate without a license. If a broker is not registered with a firm when they sell unsuitable investments, there may not be many options for recovery. Nevada securities fraud lawyers typically fight for settlements from brokerage firms and not individual brokers.
The Nevada Securities Division has published information on investor education, including the Nevada Investor Guide: Strategies for Investing Wisely and Avoiding Financial Fraud. It provides information on common red flags of investor fraud, such as high-pressure sales tactics, free lunches, and affinity scams.
Examples of Nevada Securities Fraud
The following are just a few examples of the types of investment fraud cases Nevada investment attorneys investigate. Contact the Securities Division at (702) 486-2440 if you suspect investment fraud and wish to make a report to a local authority.
Market Manipulation and Pump and Dump Schemes
Stock brokers may manipulate the market to ensure that their personal investments pay impressive returns. Market manipulation may involve a broker using insider knowledge of a client’s upcoming trade to buy or sell securities ahead of the ensuing price change.
Pump-and-dump schemes are a popular type of market manipulation that typically involve brokers (or unregistered salespeople) telling clients that they could earn huge returns on low-priced stock. They may do this via cold calling or online solicitations. Once enough new buyers have purchased the stock, driving up its price, the brokers sell their shares and rake in the profits, leaving the duped investors with worthless stocks.
Pump-and-dumps have become increasingly common in the world of cryptocurrency–buyers beware.
Ponzi Schemes
Registered brokers might tout Ponzi schemes as legitimate investments. In these cases, the broker or investment adviser may make promises of huge returns with zero risk. In reality, the scammer is using the new investments to pay off the previous investors.
Scam Pre-IPOs and Private Placements
These are offered by fraudulent companies – typically, the Initial Public Offering company and private placements do not exist. Criminals in these types of cases will hopefully face a cease-and-desist order from the SEC and criminal charges from the attorney general. The rules of FINRA arbitration do not apply in cases where there is no legitimate brokerage firm.
Nevada Investor Alerts
Nevada has also issued investor alerts for the following investment products:
- Promissory Notes are loans that come with an interest rate. They differ substantially from stocks issued by a public company – the investor may not be able to ascertain exactly how much risk is attached to these types of investments. Promissory notes are only suitable for especially wealthy investors who understand the risks and can afford to lose their entire investment.
- Real Estate Investments. With the high price of real estate, investors may be tempted by property-flipping investments. Nevada warns that these types of investments have been the subject of various scams.
- Energy Investments are always high risk. Drilling is highly speculative and offshore drilling sites may be destroyed in environmental disasters. Brokers should only recommend these securities to wealthy, accredited investors.
- Variable Annuities come with significant commissions for brokers, making them popular targets for unsuitable investments. Brokers and investment advisers must only recommend investments that fit their investor’s financial objectives. Variable annuities feature a portfolio of securities, which come with inherent risk. Their fees for early withdrawals and the potential to lapse make them frequently unsuitable.
If you have lost money on any of these types of investments, your next call should be to a Nevada securities fraud lawyer.
What Can a Nevada Securities Fraud Attorney Do for Me?
Even if the Securities Division or Nevada Attorney General identifies fraud, they cannot ensure that investors recover their investments. If you suspect you may have suffered losses as a result of fraud or misconduct, contact a Nevada investment fraud lawyer today: (877) 600-0098 or info@kurtalawfirm.com.