South Carolina regulators work to protect investors from fraudulent schemes, like the case of an investment fund manager who allegedly misrepresented his fund’s trading strategy and performance, defrauding investors of more than $20 million.
But investors don’t need to wait for regulators to catch fraud. If you’ve lost money through misconduct, you can seek legal remedy with the help of a South Carolina investment fraud attorney.
South Carolina Investment Fraud Lawyer
When you notice suspicious patterns in your trading activity or find that an investment’s performance doesn’t match up with what you were promised, a South Carolina securities fraud attorney can get to the root of your losses. Their experience in unraveling complex investment transactions helps them uncover the truth of broker misconduct.
Understanding South Carolina Securities Laws
The state laws of South Carolina define the acceptable standards of conduct for financial professionals, and provide the means for seeking recovery if your broker fails to fulfill their obligations.
The Role of the South Carolina Uniform Securities Act
The South Carolina Uniform Securities Act protects investors by defining securities fraud:
(1) to employ a device, scheme, or artifice to defraud;
(2) to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or
(3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.
This law also establishes civil liability for brokers who engage in fraud, allowing investors to pursue legal action to recover their losses.
Another important securities regulation is Chapter 13, Article 2 of the South Carolina Code of Regulations, which concerns securities exempt from registration, such as securities offered by nonprofit organizations and private placements.
South Carolina Securities Division Enforcement Actions
The Securities Division of the Office of the South Carolina Attorney General enforces the state’s securities laws and investigates investment fraud.
Recent notices include an Order to Cease and Desist filed on April 15, 2025, alleging that Raymond Restrepo made misrepresentations to a South Carolina investor about his company Fargo Renewables, which purportedly installed electric car charging stations. He allegedly also failed to honor a buyback agreement to repurchase the investor’s stock.
The Securities Division ordered the respondents to cease and desist from conducting securities business in the state and to pay a civil penalty of $60,000.
Blue Sky Laws in South Carolina
Investors are protected against fraud in South Carolina by blue sky laws. These laws prohibit fraudulent, deceptive, and manipulative schemes and practices at a state level, enabling regulators to protect South Carolina investors and allowing investors to pursue recovery through civil litigation.
Broker-Dealer and Investment Adviser Regulations in South Carolina
Financial professionals have an obligation to fully inform you about your investments, including their fees, expenses, tax consequences. They also have an obligation to disclose their own conflicts of interest in any securities transaction, and failing to do so can be a way to cover up fraud.
Failing to make proper disclosure, fabricating documents, and other forms of misconduct can result in fines, suspensions of registration, or permanent bars from the securities industry.
Securities Registration and Exemptions in South Carolina
As part of their disclosure obligations, brokers must provide you with documentation relating to a prospective investment. This documentation will include information about an investment product’s structure, features, and risks.
Some types of offerings, like private placements, don’t follow the same documentation rules as public offerings. These investments still require that your broker provide documentation explaining their characteristics and potential risks.
Common Types of Securities Fraud in South Carolina
South Carolina securities fraud attorneys can recognize patterns of deceptive and fraudulent practices in trading records, account statements, and other financial records across many types of investments.
Blind Pool Investment Fraud in SC
The South Carolina Attorney General warns against the risks of blind pool investments, a type of investment fund that does not specify what investors’ money will be used for. Though investors may be attracted to blind pools because of the possibility they may acquire a private company and take it public—but this type of investment is the perfect opportunity to mislead investors and misappropriate their funds.
Misrepresentation in SC
Financial professionals are obligated to provide certain disclosures to investors. Misrepresentation can involve exaggerations of potential returns, false statements about an investment’s fees and expenses, and other manipulations of the facts.
Excessive Trading in SC
Securities transactions come with trading fees and, for some investments, commissions that go to your broker. Excessive trading racks up trading fees and commissions that can reduce your returns so severely that you don’t make any profit at all.
Broker Overconcentration in SC
If you focus on one industry, like energy or pharmaceuticals, or on a single company’s stock, the performance of your portfolio depends heavily on those sectors. Overconcentration may not be suitable for your risk tolerance and financial situation.
Hedge Fund Fraud in SC
When you invest in a hedge fund, you rely on the integrity and market expertise of the fund’s manager. However, as private investments, hedge funds also have less regulatory oversight, making them a prime target for fraud.
Legal Remedies for Securities Fraud Victims in South Carolina
If you’ve experienced losses due to fraud or misconduct, you have multiple paths to remediation available to you. While each option offers different advantages and involves their own processes, the documentation you gather prior to your complaint will strengthen your case no matter what.
Filing a Complaint
You have several avenues available for filing complaints with South Carolina regulators:
1 South Carolina Department of Consumer Affairs
- Online Filing: Submit a complaint through the Department of Consumer Affairs’ online portal
- Documentation Required: Mail your complaint form and relevant documents without sensitive information to the South Carolina Department of Consumer Affair, P.O. Box 5757, Columbia, SC 29250
- Contact Information:
- Consumer Services/Consumer Advocacy Phone: 803-734-4200
- Consumer Advocacy Fax: 803-734-4060
- Consumer Services Fax: 803-734-4286
- Email: scdca@scconsumer.gov
2 Office of the Attorney General, Securities Division
- Online Filing: Fill out the Attorney General’s online complaint form.
- Documentation Required: Mail your supporting materials to the Office of the Attorney General, Securities Division, P.O. Box 11549, Columbia, SC 29211-1549
- Contact Information:
- Phone: 1-803-734-9916
- Email: agsecurities@scag.gov
- Fax: 803-734-3677
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
When you file complaints with regulators, you create a paper trail that can help them identify future misconduct affecting other investors. You can file complaints with these organizations simultaneously, and it’s important to follow up on their status and maintain thorough records of your evidence.
Arbitration
FINRA arbitration is lower-cost and easier to navigate than civil litigation, typically concluding in 12-18 months. Arbitration gives you the opportunity to present your case to a neutral arbitrator who will examine the evidence from both sides before issuing a binding decision.
Mediation
In mediation, a neutral facilitator will work with you and the other party to come to a resolution. This is generally faster than arbitration, usually taking months rather than years. While mediation is less formal than other options for recovery, it still results in a legally binding agreement.
Civil Litigation
A civil lawsuit may be the best path for some investors. While it is the most formal option and can take years to result in a decision, pursuing recovery through South Carolina’s courts allows you to make your case before a judge and jury.
A South Carolina securities fraud lawyer can navigate the complex procedures of a civil proceeding to pursue restitution and other damages.
How a South Carolina Investment Fraud Lawyer Can Help
Proving that you were a victim of investment fraud involves detailed documentation, examination of securities regulations, and careful navigation of complicated procedures. South Carolina securities fraud lawyers can handle the legal complexities and provide you with the ally you need to recover your losses.
Case Evaluation and Evidence Collection
South Carolina investment fraud attorneys will gather and evaluate your evidence. This can include communications between you and your broker, account statements, and other financial records that can reveal patterns of misconduct.
Representation During Arbitration or Litigation
Whether you choose to pursue FINRA arbitration, mediation, or a civil lawsuit, your attorney can navigate the formal procedures necessary to follow your case through to the end. Your attorney can present your perspective and challenge opposing arguments to prove how your investments suffered from misconduct.
Negotiating Settlements
Some firms choose to resolve disputes through settlements to avoid drawn-out proceedings. Your attorney can assess the fairness of a settlement offer and negotiate for a settlement that fully addresses your losses.
Why Choose Kurta Law as Your South Carolina Investment Fraud Attorney?
When you’ve suffered losses due to misconduct, you need an attorney with knowledge of securities laws and experience identifying manipulative practices. At Kurta Law, we focus on securing your settlement so you can bounce back from investment fraud.
Proven Results and Client Success Stories
Our team has achieved recoveries for victims of investment fraud involving many forms of misconduct. We use our expertise to identify deceptive tactics and build a custom legal strategy to prove how they affected your investments.
Experts on Complex Financial Products
We have experience interrogating transactions involving investment products ranging from mutual funds to Unit Investment Trusts (UITs). Our attorneys unravel the misleading language of promotional materials and other communications and scrutinize trading records for evidence of unsuitable transactions.
Free Consultation and Contingency Fee Structure
At Kurta Law, we believe that the financial and emotional strain of investment fraud is difficult enough to deal with before adding on legal fees. That’s why your initial consultation is always free, and we only charge attorneys’ fees if we successfully recover money on your behalf.
Get Expert Guidance from a South Carolina 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 a South Carolina securities fraud lawyer, we welcome you to reach out.
We are committed to guiding South Carolina 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.