Why Investment Losses Happen and What to Do If You Suspect Fraud

Not every investment loss is a sign of fraud, and seeing losses may not necessarily be a sign that you an attorney. Depending on your situation, your losses may have been the result of:

Bad Performance of the Investment in Question

All investments come with some element of risk, and the unfortunate truth is that sometimes your investments just don’t perform the way you hope. Experiencing some losses is a normal and natural part of the process and can be chalked up to market changes or just pure “bad luck.”

Inappropriate Advice from Your Broker or Financial Adviser

Your broker has a duty to recommend investments that are right for your financial goals and risk tolerance. If you suspect that your broker made recommendation without your best interests in mind or purposely misrepresented an investment, then it is worth working with a financial professional who can help you determine whether those actions constitute fraud or misconduct.

An Investment Scam or Ponzi Scheme

If you have become the victim of investment fraud, it could be difficult to track down the facts. In many cases, victims receive false account statements or documents and don’t discover the scam until it’s too late and their cash is gone. And these are only a few of the possibilities. Determining if your investment losses were really caused by investment fraud or stockbroker misconduct can be tricky, and it often takes a trained eye to spot wrongdoing. Review your investment documents and statements, and be on the lookout for any suspicious activity or things that just don’t seem to add up. If you’re not sure, or if you feel like you need help, speak with a trusted financial professional or investment fraud attorney.