Understanding the Impact of Securities Fraud in Vermont
It’s hard to overstate the impact of financial fraud on your trust. Vermonters are likely familiar with the alleged misappropriation of more than $50 million in foreign investors’ funds purportedly intended to be used for construction at Jay Peak ski resort and a biomedical research facility.
If you find yourself on the receiving end of an investment scheme, you need experienced legal representation. A Vermont securities fraud lawyer can help set you on the path to recovery.
Vermont Investment Fraud Lawyer
Detangling evidence of financial misconduct requires close scrutiny of trading records, communications, and other documentation. A Vermont investment fraud lawyer can take on the legwork of digging through your financial records to lay the foundation for your case.
Understanding Vermont Securities Laws
The securities fraud law of Vermont is the Vermont Securities Act. This law provides paths to recovery for victims of investment fraud by enabling state regulators to penalize manipulative and deceptive practices, and empowering investors to pursue civil action.
The Role of the Vermont Securities Act
The Vermont Securities Act protects investors in the state from financial exploitation by defining securities fraud and establishing civil and criminal penalties for defrauding investors.
Vermont Securities Division Enforcement Actions
The State of Vermont Department of Financial Regulation, Securities Division oversees the state’s securities industry. Its recent press releases include the following enforcement actions:
- The Department of Financial Regulation joined a multi-state action against brokerage firm Edward Jones, alleging supervisory issues with regard to front-load commissions paid by clients on their Class A mutual fund shares. In a settlement, Edward Jones agreed to pay an administrative fine of $272,641.52 and provide $48,113.20 to the Vermont Financial Services Education and Victim Restitution Special Fund.
- The Department awarded a total of $339,325.00 in restitution to 21 investors who allegedly suffered significant losses due to an investment adviser’s recommendation of unsuitable and high-risk investments.
Blue Sky Laws in Vermont
Blue sky laws get their name from fraudulent investments that promise investors little more than thin air. These state laws give investors another level of protection against securities fraud, and allow state regulators to conduct investigations into the firms and financial professionals that operate in their state.
Broker-Dealer and Investment Adviser Regulations in Vermont
Brokers, investment adviser representatives, and other financial professionals are obligated to make certain disclosures to their clients. This includes material facts about investments, such as their fees, tax implications, and risks, as well as their own conflicts of interest in a given transaction.
Failing to disclose these facts can lead to a suspension or bar from practicing in the securities industry as well as significant fines.
Securities Registration and Exemptions in Vermont
Securities must be registered with the State of Vermont, and investors must receive a prospectus and other documentation describing an investment’s features, expenses, potential returns, and other material facts.
Some investments are exempt from registration, such as private placements. However, these investments aren’t exempt from all disclosure requirements, so you should still receive documentation disclosing the facts about these investments.
Common Types of Securities Fraud in Vermont
While scammers may use any type of investment for their schemes, some deceptive and manipulative practices are especially common. Here are some types of misconduct Vermont securities fraud lawyers often investigate:
Pyramid Schemes in VT
Pyramid schemes lead investors to believe that they’ll see big returns—but most investors lose everything they put in. This type of scheme relies on a stream of new investors to pay back the people who bought in earlier.
Broker Overconcentration in VT
When you concentrate your portfolio in one industry, market, or even a single stock, you expose yourself to significant risk. This means overconcentration is often unsuitable for most investors’ risk tolerances and financial situations.
Cryptocurrency Scams in VT
Cryptocurrency transactions can be complex and confusing, making them a prime target for fraud. As a newer type of investment, cryptocurrency is also subject to changing regulations, requiring an experienced securities attorney to determine the best path to resolution.
Churning in VT
Churning (also known as excessive trading) is the process of executing a high number of trades, which generates commissions and trading fees. These expenses can eat into investors’ profits or wipe them out entirely.
Elder Financial Abuse in VT
Elderly investors may fall victim to scams and other unethical practices that can devastate their finances. They can also be taken advantage of by their broker or other trusted financial professionals, putting their retirement savings in jeopardy.
Legal Remedies for Securities Fraud Victims in Vermont
If you’re reeling from the effects of investment fraud, a securities attorney can help you determine the best path to recovery. You have several options available, each with its own advantages.
Filing a Complaint
Investors in Vermont can reach out to several authorities to file securities complaints:
1 Office of the Vermont Attorney General, Consumer Assistance Program
- Online Filing: File your complaint through the Attorney General’s online form
- Documentation Required: Include documentation with sensitive information removed, the amount of your losses, and business name and contact information of the subject of your complaint online or by mail to the Office of the Vermont Attorney General, Consumer Assistance Program, 109 State Street, Montpelier, VT 05609-1001
- Contact Information:
Phone: 800-649-2424
Email: ago.cap@vermont.gov
2 State of Vermont Department of Financial Regulation, Securities Division
- Online Filing: Use the Securities Division’s online form to submit your documentation
- Documentation Required: Submit online or mail your supporting documentation to the Department of Financial Regulation, Securities Division, Attn: Investor Complaints, 89 Main Street Montpelier, Vermont 05620-3101
- Contact Information:
Email: dfr.securitiesinfo@vermont.gov
Phone: 802-828-3420
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
You can file complaints with multiple authorities at the same time, and it’s crucial to check in on the progress of your filings. Be sure to keep copies of your documentation—it lays the groundwork for your case no matter which path to resolution you pursue.
Arbitration
Arbitration allows you to present your case to a panel of experts under the guidance of an arbitrator. This is designed as a faster alternative to civil court, but still has its own formalities that your attorney can navigate for you. FINRA arbitration typically provides a binding decision in 12-18 months.
Mediation
In mediation, you will work together with the other party and a neutral facilitator to resolve your dispute. Mediation is generally the fastest form of resolution compared to arbitration or litigation, often providing resolution in several months.
Though mediation is less formal than other remedies, it still ends in a legally binding agreement between all parties.
Civil Litigation
For some investors, civil litigation may be the best option. A Vermont securities fraud lawyer can navigate the formal proceedings on your behalf, making your case before a jury. While a civil suit can take years to yield a decision, you may be awarded restitution and other damages.
How a Vermont Investment Fraud Lawyer Can Help
Securities law is complex and labyrinthine, requiring a specialized attorney to make your case effectively. Vermont securities fraud attorneys can tackle the complexities of the law so you can focus on your financial recovery.
Case Evaluation and Evidence Collection
Every case begins with an evaluation and the collection of evidence. Your attorney will scrutinize your account statements, communications with your broker, and other documents for patterns of fraud. The evidence they gather will be vital to building and arguing your case.
Representation During Arbitration or Litigation
Each method of recovery has its own procedures, and a Vermont investment fraud lawyer can determine the best way to make your case within them. This can include challenging opposing testimony, examining expert witnesses, and presenting your evidence in a compelling way to prove how your portfolio was affected by misconduct.
Negotiating Settlements
In some cases, you may be offered a settlement. Your attorney can assess whether the offer addresses the full value of your losses and negotiate for a better agreement.
Why Choose Kurta Law as Your Vermont Investment Fraud Attorney?
If you’ve suffered investment fraud in Vermont, you need a team familiar with the state’s legal landscape and experience in securities litigation. Our attorneys have extensive knowledge of financial markets, deceptive and manipulative sales practices, and connecting the dots to prove the impact of fraud on your investments.
Proven Results and Client Success Stories
At Kurta Law, we use our combined decades of experience in securities law to advocate for our clients and prove how misconduct affected their portfolios. We’ve achieved significant recoveries in cases involving a wide range of investment products using legal strategies tailored to each client.
Experts on Complex Financial Products
Our attorneys have deep knowledge of many investment products, from seemingly-simple mutual funds and options to highly complex structured products.
Free Consultation and Contingency Fee Structure
We believe that your path to justice shouldn’t become an additional strain on your finances. That’s why we work on a contingency basis: you won’t pay for our initial evaluation, and you’ll only pay legal fees if we successfully recover money on your behalf.
Get Expert Guidance from a Vermont 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 Vermont securities fraud lawyer, we welcome you to reach out.
We are committed to guiding Vermont 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.