Investment fraud can be devastating, both financially and emotionally. It can be difficult to know what to do when seemingly sound investments turn out to be fraudulent. Many investors discovered this when they lost over $2 million through a fraudulent commodities scheme allegedly conducted by a Tennessee man.
When you lose money through fraud or misconduct, you have options. Contacting a Tennessee securities fraud attorney is the first step to recovering your lost funds and your future.
Tennessee Investment Fraud Lawyer
Evidence of fraud is often hidden in account records and other documentation that can be difficult for an investor to parse. Tennessee securities and investment fraud attorneys can follow the trail of misconduct to discover how you’ve been exploited and determine the best course of action to recover your losses.
Understanding Tennessee Securities Laws
Tennessee securities laws prohibit deceptive and unethical practices in the securities industry and empower investors to seek legal action against fraudsters.
The Role of the Tennessee Securities Act of 1980
Investors in Tennessee are protected against financial exploitation by the Tennessee Securities Act of 1980. It prohibits the use of fraudulent and deceitful conduct in the securities industry and establishes civil liability for exploiting investors.
Tennessee Securities Division Enforcement Actions
The Tennessee Department of Commerce & Insurance, Securities Division investigates allegations of fraud and steps in to protect the public through its enforcement actions.
In one recent action, the Securities Division sought an Order to Cease and Desist, alleging that AtomicHubPro.com, Neftyblockspro.top, Wealth USA, Inc., and Sunshines Trading Inc., sold unregistered securities and used coercive and fraudulent practices to promote them.
Blue Sky Laws in Tennessee
Though federal regulators like the Securities and Exchange Commission work to identify and prosecute investment fraud across the country, states recognize that investors need multiple layers of protection.
Tennessee blue sky laws allow the state attorney general and other regulators to take on scammers by prohibiting securities fraud, requiring brokers and investment adviser representatives to register with the state, and requiring certain standards of conduct in the securities industry.
Broker-Dealer and Investment Adviser Regulations in Tennessee
Brokers and other financial professionals must provide their clients with a fair and balanced view of investments by fully disclosing their fees, risks, tax liabilities, and conflicts of interest.
When a broker omits material facts about investments—or outright fabricates documents to mislead investors—they can face hefty fees or even permanent bans from engaging in securities business.
Securities Registration and Exemptions in Tennessee
Financial professionals have an obligation to provide their clients with certain documentation about the investment they recommend. You should receive information about an investment’s structure and features, risk factors, potential returns, and other material facts that can significantly impact your understanding of the product.
Other types of offerings, such as limited offerings and private placements, follow different rules under federal law. Even so, you should receive detailed information about these investments’ features, risks, and the use of the funds you invest.
Common Types of Securities Fraud in Tennessee
Investment fraud can take on many forms, depending on your specific investment products and financial situation. Here are some of the most common types of misconduct you should know about.
Unsuitable Investment Recommendations in TN
As an investor, your profile contains information about your risk tolerance, tax status, age, investing experience, and other characteristics that should inform your broker’s recommendations. If a recommendation is unsuitable for your profile and financial goals, it can result in losses.
Pump-and-Dump Schemes in TN
Pump-and-dump schemes take advantage of investors’ hopes to get in on a rising stock or other investment, but end in most investors losing all or most of their investment. In this scheme, investors are encouraged to buy an investment, boosting its trading price—then the manipulators of the scheme sell their stock, crashing the price as they pocket the profits.
Real Estate Investment Trust Fraud in TN
Real estate investment trusts (REITs) give investors the opportunity to earn money from a portfolio of real estate properties. However, brokers may downplay the fees, risks, and conflicts of interest associated with REITs in order to make a higher commission.
Unauthorized Trading in TN
FINRA rules require brokers to request authorization from an investor before executing transactions, except in discretionary accounts. Before your broker can freely trade in your account, however, you and the brokerage firm that holds your account need to approve it as discretionary.
Elder Financial Abuse in TN
Older investors may rely on their investments as part of their income or savings for their upcoming retirement, making exploitation and mismanagement especially difficult to recover from. Bad actors manipulate seniors with high pressure sales tactics, claims of lucrative returns in the short-term, and other deceptive practices.
Legal Remedies for Securities Fraud Victims in Tennessee
Investors seeking to recover their losses caused by misconduct have several paths at their disposal. Each of these remedies has different advantages and operates on a different time scale, but all begin with the same foundation of evidence.
Filing a Complaint
In Tennessee, you can file an investment fraud complaint with several regulators:
1 Tennessee Office of the Attorney General, Division of Consumer Affairs
- Online Filing: File your complaint through the AG’s online portal
- Documentation Required: Mail copies of your relevant documents to the Tennessee Division of Consumer Affairs, Tennessee Attorney General’s Office, P.O. Box 20207, Nashville, TN 37202-0207
- Contact Information:
- Email: consumer.affairs@ag.tn.gov
- Phone: 615-741-4737
- Phone (Inside Tennessee): 800-342-8385
- Fax: 615.532.4994
2 Tennessee Commerce & Insurance, Securities Division
- Online Filing: Use the Securities Division’s online forms to file a Securities/Investments Complaint or an Insurance Agent/Agency Complaint.
- Documentation Required: Mail your supporting documents to Tennessee Commerce & Insurance, Securities Division, 500 James Robertson Parkway, 11th Floor, Nashville, TN 37243
- Contact Information:
- Enforcement Main Line: 615-741-5900
- Email: securities.1@tn.gov
- Phone: 615-741-8192
- Fax: 615-532-8375
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 regulators plays a different role in the investment landscape, but you can file complaints with all three to create an official record of possible misconduct. It’s crucial to keep copies of the documentation you submit to ensure you have a solid foundation of evidence should you pursue legal action.
Arbitration
In arbitration, you present your evidence to a panel that will issue a binding decision. Its simpler rules make arbitration easier to navigate than civil court, and it generally provides a resolution in 12-18 months, making it faster than a civil proceeding.
Mediation
Mediation brings you and the other party together with a neutral facilitator who will negotiate a resolution that satisfies both parties. The agreement you reach is legally binding, but the mediation process is overall less formal than other paths to resolution. It’s also one of the faster options, typically providing resolution over several months.
Civil Litigation
For some investors, civil litigation is the best option. Taking your case to Tennessee’s courts provides the opportunity to use expert witnesses and make an extensive examination of your evidence.
If you win, the judge may award restitution and other damages. If your case doesn’t result in a satisfactory outcome, civil litigation provides the means to appeal the judge’s decision.
How a Tennessee Investment Fraud Lawyer Can Help
Proving that your portfolio has been affected by fraud requires extensive documentation, expert knowledge of securities regulations, and strict adherence to the procedures of your chosen path to resolution. A Tennessee securities attorney can take the stress of seeking recovery off your shoulders.
Case Evaluation and Evidence Collection
First, a Tennessee securities fraud lawyer will evaluate your account statements, communications, and other documentation to identify signs of fraud. This creates the bedrock for your case, and will be the best way to make a strong argument no matter which path to recovery you pursue.
Representation During Arbitration or Litigation
Next, your attorney will argue your case on your behalf. Your attorney will be familiar with the rules and procedures of your chosen method of recovery, from presenting a compelling argument using your evidence to examining witnesses to provide supplementary information.
Negotiating Settlements
Finally, your attorney will evaluate settlement opportunities and negotiate for an agreement that remediates your losses. The evidence you prepared can serve as leverage when negotiating for a higher settlement.
Why Choose Kurta Law as Your Tennessee Investment Fraud Attorney?
Untangling investment fraud requires extensive experience in securities law. Our firm has years of experience representing victims of broker misconduct and investigating claims of financial exploitation.
Proven Results and Client Success Stories
Kurta Law has a track record for securing settlements through our staunch advocacy for our clients and comprehensive investigations. Our ability to analyze complex financial transactions and prove how your investments suffered from mismanagement is our key to success.
Experts on Complex Financial Products
Our team has experience investigating misconduct involving complex investment products, such as structured notes, real estate investment trusts (REITs), and cryptocurrencies. Our attorneys use their expertise to cut through the complexity of these investments and reveal how scammers manipulate the facts to deceive investors.
Free Consultation and Contingency Fee Structure
We offer initial consultations for free and work on a contingency basis to limit your financial strain as you seek recovery. You only pay legal fees if we recover money for you.
Get Expert Guidance from a Tennessee 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 Tennessee securities fraud lawyer, we welcome you to reach out.
We are committed to guiding Tennessee 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.