Understanding the Impact of Securities Fraud in Virginia
Fraudulent investments often masquerade as legitimate enterprises, and investors may fall victim to social engineering tactics that lure them into investing their money in these schemes, like one case that allegedly involved spoofed cryptocurrency platforms.
If you’ve lost money through fraudulent investments or deceptive sales practices, reach out to a Virginia investment fraud lawyer. A case evaluation is the first step to proving misconduct and recovering your losses.
Virginia Investment Fraud Lawyer
If you have suspicions about the activity in your account, a Virginia investment fraud attorney can follow the evidence and uncover the truth. They can reveal proof of misconduct in your financial records and establish the connection between your broker’s actions or statements and your losses.
Understanding Virginia Securities Laws
In Virginia, investors are protected from financial exploitation by state securities laws, which also lay out the path to legal recovery. State regulators have the authority to investigate and take action against brokers and firms that defraud their clients, but they aren’t the only ones.
State law also allows Virginia securities and investment fraud lawyers to pursue legal action on your behalf and win damages or restitution for your losses.
The Role of the Virginia Securities Act
The Virginia Securities Act defines fraud with regard to securities transactions, including investment advice. This allows investors and state regulators to pursue legal action against brokers and investment advisers who use manipulative tactics to defraud their clients.
Virginia Division of Securities Enforcement Actions
The Virginia State Corporation Commission, Division of Securities and Retail Franchising publishes its recent enforcement actions online.
In a recent action, Sterling Capital, LLC and Dennis Sterling Anderson consented to the entry of findings that they allegedly lacked registration to sell securities and sold unregistered securities in Virginia. They allegedly sold a promissory note to a Virginia investor and failed to repay it in full. The Division of Securities permanently enjoined from selling securities in the state and from registering as broker-dealers, investment advisors, or agents of these entities.
Blue Sky Laws in Virginia
Investors in Virginia are protected by the state’s blue sky laws. These laws give state regulators the power to prosecute fraud and sanction financial professionals, and they complement the protections against fraud provided by federal law.
Broker-Dealer and Investment Adviser Regulations in Virginia
The state may take action against broker-dealers, investment advisors, and their representatives in cases of misconduct. Brokers and investment advisers may have their licenses suspended or revoked, and they may face fines and other sanctions.
You can discover your broker’s history of state and FINRA regulatory actions on BrokerCheck, or examine your investment adviser’s record through the SEC’s Investment Adviser Public Disclosure database.
Securities Registration and Exemptions in Virginia
Securities offered in Virginia must either be registered with the state or subject to an exemption. You should be provided with a prospectus and other documents about a registered investment, which will disclose information about the product’s risks, fees, potential returns, and conflicts of interest.
Some investments, like private placements, are exempt from registration. However, these investments are still subject to disclosure requirements and you are still entitled to receive information before you invest.
Common Types of Securities Fraud in Virginia
Securities fraud can take on many forms and involve many types of investments. Some of the common types of investment fraud include:
Margin Fraud in VA
When you purchase securities on margin, you are using funds borrowed from your brokerage firm. This can amplify your returns—or balloon your losses. Investing on margin is high risk and can have significant financial consequences if your investments don’t perform well.
Forex Trading in VA
Forex trading (foreign exchange trading), in its simplest form, involves predicting that a currency will increase in value versus the dollar. However, forex trading is a prime target for fraud in the form of fake trading platforms, unregistered brokers, and schemes designed to trick you into sending money overseas.
Churning in VA
Securities transactions come with trading fees and generate commissions for your broker. Excessive trading, or churning, generates such high fees and commissions that the investor may not be able to turn a profit.
Broker Overconcentration in VA
Overconcentration in a single sector or individual stock can expose you to an unsuitable degree of risk. Brokers must take into account their client’s risk tolerance and other factors described in an investor’s profile when recommending investments or strategies.
Unauthorized Trading in VA
Brokers need your authorization before they can execute transactions in your accounts, except in discretionary accounts. However, these accounts require approval from both the investor and the firm before a broker can exercise their trading discretion.
Legal Remedies for Securities Fraud Victims in Virginia
It’s important to take action right away if you suspect you are a victim of fraud. You have several avenues of recovery at your disposal, each with their own advantages.
No matter which path you take, you’ll need to gather and organize your documentation before you file your complaint to ensure you have a strong foundation for your case.
Filing a Complaint
Several regulators are ready to investigate your complaint in Virginia:
1 Virginia State Corporation Commission, Division of Securities and Retail Franchising
- Online Filing: Submit your complaint through the Division’s online form
- Documentation Required: Print and fill out a complaint form and mail it, with relevant documentation, to Division of Securities and Retail Franchising, P.O. Box 1197, Richmond, Virginia 23218
- Contact Information:
Email: SRF_General@scc.virginia.gov
Phone: (804) 371-9051 or 1-800-552-7945 (Toll-Free)
Fax: (804) 371-9911
2 Office of the Attorney General of the State of Virginia
- Online Filing: Fill out the AG’s consumer complaint form
- Documentation Required: Mail your complaint form and copies of supporting documentation with sensitive information removed to the Office of the Attorney General of Virginia, 202 North Ninth Street, Richmond, VA 23219
- Contact Information:
Consumer Protection Hotline: (800) 552-9963 for calls within Virginia, (804) 786-2042 for Richmond area/outside Virginia (8:30 a.m. – 5:00 p.m., weekdays)
Fax: (804) 225-4378
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
It’s crucial to keep copies of your documentation and follow up on your complaints regularly to ensure you have a paper trail when it comes to resolving your case. Filing complaints with regulators creates an official record that can help them identify fraud and take action on behalf of other investors.
Arbitration
The Financial Industry Regulatory Authority (FINRA) provides an arbitration process for investors to resolve disputes against brokers and firms. This process is designed to be shorter and less formal than a civil proceeding, and typically resolves in 12-18 months. Your attorney will present your case to a panel and arbitrator, who will provide a binding decision.
Mediation
In mediation, you will work together with the other party and a mediator to come to a final agreement. Mediation often produces a resolution in several months, making it significantly more expedient than civil litigation, but still produces a legally-binding agreement in the end.
Civil Litigation
Taking a complaint to civil court may be the best option for some investors. Though civil litigation is a formal and potentially lengthy process that may take years to resolve, it gives you the opportunity to make your case in front of a jury and can yield restitution and other damages. You also have the right to appeal the judge’s decision.
How a Virginia Investment Fraud Lawyer Can Help
When it comes to securities fraud and financial misconduct, you need an attorney who specializes in securities law. Working with a Virginia securities fraud attorney allows you to focus on your financial recovery while your representation argues on your behalf.
Case Evaluation and Evidence Collection
The first step in building your case is taking a look at your evidence. A Virginia investment fraud attorney will scrutinize your account records, your investments’ prospectuses and promotional materials, and other documents that may reveal signs of misconduct. Their work will provide the bedrock for your recovery claim.
Representation During Arbitration or Litigation
When you work with a securities attorney, you won’t need to navigate the recovery process on your own. Your attorney will follow the procedures of your chosen method of resolution, examining witnesses, challenging the opposing party’s testimony, and presenting your evidence to show how your accounts suffered due to misconduct.
Negotiating Settlements
In some cases, you may be presented with a settlement offer. Your attorney can evaluate whether an offer adequately addresses your losses and negotiate for a better settlement if the offer falls short.
Why Choose Kurta Law as Your Virginia Investment Fraud Attorney?
At Kurta Law, we know that pursuing recovery after investment fraud can seem daunting. We use our extensive knowledge of Virginia securities laws and investment fraud to prove how misconduct impacted your account.
Proven Results and Client Success Stories
Our track record for success has depended on our thorough research and determined advocacy for your clients. Each recovery we achieve stems from our experience in evaluating our client’s documentation and creating tailored legal strategies to prove how they’ve been harmed.
Experts on Complex Financial Products
Our attorneys have expertise identifying red flags of suspicious activity in transactions involving many investment products, including structured notes, real estate investment trusts (REITs), and alternative investments. We know how to navigate the complex and confusing language of prospectuses and advertising materials to reveal misleading language and omissions of fact.
Free Consultation and Contingency Fee Structure
We believe pursuing recovery after investment fraud shouldn’t add to your financial burden. That’s why we offer free consultations and work on a contingency basis, so you only pay attorney fees if we recover money for you.
Get Expert Guidance from a Virginia 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 Virginia securities fraud lawyer, we welcome you to reach out.
We are committed to guiding Virginia 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.