As an investor, it can be difficult to evaluate the legitimacy of investments and their risks, especially when you don’t have all the facts. Scams often present themselves as can’t-miss opportunities or reliable investments that can help investors build their futures. Instead, fraudsters steal away with those dreams.
Take the Oregon real estate company whose operators allegedly promised investors large payouts in as little as 90 days, but instead used new investors’ funds to pay “returns” to earlier investors, allegedly defrauding individual investors of more than $11 million. Fraud often leaves investors reeling and unsure what to do next.
Oregon Investment Fraud Lawyer
If you’ve suffered investment losses and suspect you’ve been taken advantage of by your broker, a securities issuer, or another party, you need to consult with an Oregon securities fraud attorney. They can dig through the evidence to uncover deceptive or manipulative practices hidden in your brokers’ trading activity or in the promotional materials for your investments.
Understanding Oregon Securities Laws
Oregon securities laws protect investors from many forms of misconduct, from charging excessive commissions to complex fraudulent schemes. These laws also give state regulators the power to pursue civil and criminal litigation against individuals and organizations that defraud investors.
The Role of the Oregon Securities Law
Oregon Revised Statutes Chapter 59 defines securities fraud, the requirements for securities registration, and the civil and criminal penalties for violating securities laws. This provides the foundation for investors to seek justice for account losses suffered because of misconduct.
Chapter 441 of the Oregon Administrative Rules provides additional protection, describing what qualifies as unethical conduct by brokers and investment advisers and providing the means for regulators to revoke or suspend their licenses.
Oregon Division of Financial Regulation Enforcement Actions
The Oregon Department of Consumer and Business Services, Division of Financial Regulation oversees the securities industry in the state. It also maintains a public database of its enforcements that you can sort by business, e.g., securities or insurance. Some enforcement actions result in multimillion-dollar fines for broker-dealers and other financial firms.
For example, on March 10, 2025, the Division of Financial Regulation entered into a Final Order with Vanguard Marketing Corporation (VMC) and The Vanguard Group, Inc. (VGI), alleging that VGI failed to disclose to investors that they may experience higher capital gains distributions in taxable accounts following the lowering of the investment minimum of Institutional Target Retirement Funds.
Among other sanctions, the state ordered VMC and VGI to pay $92.911 million in remediation to the SEC’s Fair Fund and disgorgement of $14.7 million.
Blue Sky Laws in Oregon
As in many other states, investors in Oregon are protected by blue sky laws. These state laws give investors another layer of protection against investment fraud, on top of the protections enshrined in federal law.
For example, some kinds of securities transactions are prohibited in Oregon, like market manipulation or brokers trading against their clients’ orders in the market.
Broker and Investment Adviser Regulations in Oregon
Brokers and investment advisers in Oregon can have their licenses suspended, denied, or revoked by the state if they engage in “dishonest, fraudulent, or illegal practices […] or unfair or unethical practices or conduct in connection with the purchase or sale of any security” (ORS 59.205).
If you want to know your broker’s regulatory history, FINRA operates a database called BrokerCheck that allows you to search your broker’s records by name or Central Registration Depository (CRD) number. The SEC operates a similar database for investment advisers.
Securities Registration and Exemptions in Oregon
The securities registration process is designed to protect investors from scams. Prospectuses and other documents serve to inform you about an investment product’s features, conflicts of interest, and risks. Some investments, like private placements, qualify for exemption from registration, but may also be limited to accredited investors.
However, scammers may file misleading documents or fail to register their securities entirely in order to make them appear like a legitimate investment opportunity.
Common Types of Securities Fraud in Oregon
Oregon securities fraud attorneys handle cases involving many types of misconduct, ranging from large-scale Ponzi schemes to the misrepresentation or omission of material facts about a single investment.
Unsuitable Investment Recommendations in OR
When giving investment recommendations, brokers must use the information in an investor’s profile to ensure the investment is suitable for their financial goals. An investor’s profile describes their age, risk tolerance, tax status, and other characteristics. Unsuitable investment recommendations fail to serve investors’ goals and can lead to losses.
Brokers are typically responsible for evaluating the suitability of investments, but this isn’t the case for self-directed IRAs. The Oregon Division of Financial Regulation provides a tip sheet on self-directed IRAs, which allow you to hold more types of investments than other IRAs, but come with their own risks.
Broker Overconcentration in OR
Diversification is a common topic among investors, and for good reason—if your portfolio is overconcentrated in one security or industry, your returns rely heavily on the performance of that sector. This makes overconcentration an unsuitable investment strategy for most investors.
Pyramid Schemes in OR
Pyramid schemes are ubiquitous, and can come involve a variety of investments. What makes every scheme the same is that the capital raised from new investors is used to repay investors who came in earlier—people “higher up” on the pyramid—which means that the investors at the top earn the most money, while the investors on the bottom lose everything.
Churning in OR
Trading generates commissions for your broker as well as trading fees. When trading is quantitatively unsuitable—known as churning or excessive trading—these commissions and fees balloon rapidly. You may see your profits severely reduced or vanish entirely if your account is churned.
Unauthorized Trading in OR
Brokers must obtain authorization from their clients before placing trades on their behalf, except in discretionary accounts. However, an investor must provide written authorization and the brokerage firm needs to approve an account as discretionary before a broker can exercise their trading discretion.
Firms also have a responsibility to monitor trading activity to catch unauthorized trading and can be liable for a failure to detect this misconduct.
Legal Remedies for Securities Fraud Victims in Oregon
If you suspect your broker or firm has engaged in misconduct, take action right away. The sooner you take action, the more likely it is that you’ll recover losses.
Filing a Complaint
In Oregon, there are several regulatory bodies that provide avenues for addressing investment misconduct. Here’s where you can turn for help:
1. Consumer Protection Division of the Oregon Department of Justice
- Online Filing: Submit through the DOJ’s complaint portal
- Documentation Required: Upload relevant documents as images, text files, or spreadsheets
- Contact Information:
- Phone: 1-877-877-9392 (8:30 AM – 4:30 PM)
2. Oregon Department of Financial Regulation
- Online Filing: File a complaint involving insurance, securities, or financial services online
- Documentation Required: Upload your documents online, or mail or fax them to Department of Consumer and Business Services, Division of Financial Regulation — 2, P.O. Box 14480, Salem, Oregon 97309-0405
- Contact Information:
- Phone: 888-877-4894
- Email (insurance): DFR.InsuranceHelp@dcbs.oregon.gov
- Email (financial services): DFR.FinancialServicesHelp@dcbs.oregon.gov
- Email (securities and investments): Securities.Registrations@dcbs.oregon.gov
- Fax (insurance): 503-378-4351
- Fax (financial services): 503-947-7862
3. Financial Industry Regulatory Authority (FINRA)
- Online Filing: Access through FINRA’s complaint portal
- Documentation Required: Copies of all broker communications and relevant account statements
- Contact Information:
- Senior helpline: 844-574-3577 (9 a.m. – 5 p.m. ET, weekdays)
- Main line: 301-590-6500
- Support center: Available through FINRA’s contact page
Each of these organizations plays a different role in regulating the securities industry in Oregon, and you can file complaints with each simultaneously. This creates an official record of your complaint, which can help protect future investors from similar exploitation. Remember to maintain copies of all your submitted documentation to ensure you can make the strongest case possible if you need to pursue legal action to recover your losses.
Arbitration
Arbitration allows you to present your case to a panel overseen by a neutral arbitrator, whose final decision is binding for all parties. The process is easier to navigate than civil litigation, and typically leads to resolution in 12-18 months.
Mediation
Mediation brings you and the other party together to work with a neutral facilitator to resolve your dispute, usually providing a resolution within months, rather than years. This is a less formal process than other paths to recovery, but the final agreement you reach is still legally binding.
Civil Litigation
In some cases, a civil lawsuit is the best option. While civil litigation may take years to result in a decision, it also gives you full legal protections and the right to appeal the judge’s decision.
Civil litigation also comes with many formal procedures best navigated with the help of a securities attorney, but it can potentially yield restitution and additional damages not available through other paths to resolution.
How an Oregon Investment Fraud Lawyer Can Help
Cases of investment fraud involve extensive documentation, complex state and federal regulations, and formal procedures unfamiliar to the average investor. An experienced Oregon investment fraud lawyer can navigate these processes on your behalf, removing the stress of pursuing recovery on your own.
Case Evaluation and Evidence Collection
An investment fraud attorney will examine your documentation to create the foundation for your case. This can include analyzing account statements, investment promotional materials, and broker communications for patterns of misconduct.
Representation During Arbitration or Litigation
Regardless of which method of recovery you pursue, your attorney will navigate the procedures as your representative. This includes examining witnesses, presenting evidence, and handling negotiations with the other party and mediators.
Negotiating Settlements
When presented with a settlement opportunity, an experienced Oregon investment fraud attorney can assess the value of your claim and negotiate for a settlement that better addresses your losses.
Why Choose Kurta Law as Your Oregon Investment Fraud Attorney?
When you file a dispute, you can expect the other party to come prepared. You need a legal team familiar with Oregon’s securities laws with years of experience evaluating misconduct and winning fair settlements for investors.
Proven Results and Client Success Stories
Investment fraud can shatter investors’ confidence in their financial security. Our team knows the stakes for your future, and our successes are built on our years of experience in securities law, using our expertise to prove how misconduct affected your accounts and to seek maximum recovery.
Experts on Complex Financial Products
Our legal professionals have experience evaluating complex products such as REITs, private placements, and structured products. This expertise helps us evaluate the suitability of investment recommendations and identify how misconduct has affected your portfolio.
Free Consultation and Contingency Fee Structure
Investment losses can cause significant financial strain, which is why we offer initial consultations at no cost. You’ll only pay attorney fees if we recover money on your behalf. This gives you the opportunity to get your situation evaluated as soon as possible, increasing your likelihood for recovery, without adding an additional strain.
Get Expert Guidance from an Oregon Securities Fraud Attorney
If you’ve been misled by a broker or lost money to a fraudulent scheme, you don’t have to face the aftermath alone. Our team is here to help you fight for your rights and restore your financial stability. To learn more about the benefits of hiring an Oregon securities fraud lawyer, we welcome you to reach out.
We are committed to guiding Oregon investors who have been wronged by brokers or fraudulent businesses. Call us at (877) 600-0098 for a free case evaluation, or fill out our online form today.