What is an Investment Fraud Lawyer?

Investment fraud is an unfortunate reality many don’t anticipate until it’s too late. Suddenly, trusted investments are gone, and the future you were building seems out of reach. This is where an experienced investment loss lawyer, like those at Sonn Law Group, steps in. These attorneys focus on helping victims of financial scams by investigating fraudulent activity, gathering evidence and pursuing claims to recover lost funds.

At Sonn Law Group, our team is dedicated to supporting victims of investment fraud as they navigate the legal process and seek justice. Here’s how an experienced investment loss lawyer can help you move forward:

Understanding Investment Fraud

Investment fraud can take many forms, but it boils down to one thing: deceit.  At its core, investment fraud involves misleading or deceptive practices aimed at convincing someone to make financial decisions that ultimately benefit the fraudster. Whether it’s a trusted advisor who led you astray or an investment that sounded “too good to miss,” the consequences are devastating — resulting in lost savings and, in extreme cases, years of hard work erased in an instant.

Common scenarios where fraud occurs include:

• Ponzi Schemes: ​​In a Ponzi scheme, fraudsters attract investors with promises of high returns and low risk. Instead of investing the money, they use funds from new investors to pay returns to earlier investors, creating an illusion of profit. Eventually, these schemes collapse when there aren’t enough new investors to sustain the payouts, leaving most participants with significant losses.
• Pyramid Schemes: Like Ponzi schemes, pyramid schemes depend on bringing in new participants to generate returns. However, instead of real investment returns, these schemes are funded by recruitment fees paid by each new recruit.
• Unauthorized Trading: When brokers make trades or investments without client permission, they violate the trust placed in them and expose clients to unwanted risks. 
• Misrepresentation: Some fraudsters exaggerate or even lie about the security, risks or expected returns of an investment, convincing victims to invest based on false information.
• Broker Misconduct: This includes a variety of unethical actions, from recommending unsuitable investments to failing to act in the client’s best interest.

Each type of fraud can leave lasting effects, impacting victims both financially and emotionally as they work to rebuild confidence and recover losses. It’s important not to blame yourself — these acts are illegal, and the fault lies with the scammers. What matters now is finding the support you need to move forward and restore your financial security. 

What Does an Investment Fraud Lawyer Do? 

Investment fraud lawyers help ensure that those responsible for the fraud are held accountable and that you receive the compensation you deserve. This process typically involves:

1. Investigating the Fraud: An investment fraud lawyer examines every relevant detail, including financial statements, transaction histories and communications with brokers or advisors. They may also analyze trading patterns to identify unauthorized or suspicious activity. 
2. Building Your Case: A strong case requires thorough documentation. An investment fraud lawyer will compile all necessary paperwork, including transaction records, email or phone communication logs and any contractual agreements. The lawyer may also gather statements from financial experts to support your claim, demonstrating how the broker’s actions deviated from standard industry practices.
3. Filing Claims and Legal Actions: Once the case is built, the lawyer takes the next step to formally pursue your claim. This often involves filing complaints with regulatory bodies, such as the Financial Industry Regulatory Authority (FINRA), to seek disciplinary actions against the broker or firm. In more serious cases, the lawyer may file a lawsuit to directly pursue financial compensation.

   These actions — whether as part of regulatory complaints, lawsuits or settlement negotiations — are taken by the lawyer to help you pursue the compensation you deserve and hold those responsible for the fraud accountable.

How to Prove Investment Fraud

Proving fraud in investment cases requires a thorough, evidence-driven approach. Here’s a step-by-step breakdown of the process: 

1. Gather Financial Documentation: The first step is collecting all relevant financial documents, including account statements, trade confirmations, communications and signed agreements. These records form the backbone of the case and help establish a timeline of events.
2. Analyze for Red Flags: Each document is reviewed closely to identify red flags, such as unauthorized transactions, discrepancies in account statements or misleading communications from advisors. Identifying these red flags is key to building a compelling case.
3. Consult Financial Experts: Financial experts are often brought in to assess whether the broker or advisor acted outside standard industry practices or regulatory guidelines. Their analysis helps clarify where violations may have occurred and strengthens the case with authoritative insight.
4. Develop a Legal Strategy: Once all evidence is gathered and reviewed, the lawyer designs a tailored legal strategy aimed at recovering losses. This could involve filing regulatory complaints, pursuing a lawsuit or negotiating a settlement, depending on the specifics of the case.
5. Execute the Strategy: With a clear plan in place, the lawyer proceeds with the chosen actions, whether filing complaints, negotiating with responsible parties or preparing for court proceedings. Each step is taken with the goal of achieving a fair recovery for the client.

Legal Actions Available to Victims

If you’ve been affected by investment fraud, here are some legal options available to pursue justice and recover your losses:

• Filing Regulatory Complaints: Victims can file complaints with regulatory bodies like FINRA, which oversees brokerage firms and financial advisors. These complaints can lead to disciplinary actions against the responsible parties, such as fines, suspensions or even bans from the industry.
• Litigation: In cases where financial losses are substantial, victims may pursue litigation against the individuals or firms involved. Lawsuits can provide a direct way to hold those responsible accountable and seek compensation for damages. This legal action might involve suing brokers, financial advisors or investment firms for unauthorized trading, misrepresentation or breach of fiduciary duty.
• Arbitration or Mediation: Some cases may be resolved through arbitration or mediation, which can provide a faster, less formal path to recovery. Arbitration through FINRA, for instance, allows for dispute resolution outside of court, often leading to compensation without the extended timeline of traditional litigation.

Benefits of Hiring an Investment Fraud Lawyer

Investment fraud cases are complex, and specialized knowledge is essential. By hiring an experienced investment fraud lawyer, you benefit from:

Expert Guidance

Investment fraud cases are complex and require more than just legal insight — they call for a deep understanding of financial practices and regulatory systems. A knowledgeable investment fraud lawyer can identify hidden assets, analyze trading patterns for signs of misconduct and work closely with agencies like the SEC (Securities and Exchange Commission) and FINRA. With a strategic approach tailored to your case, they’ll apply the right methods to strengthen your claim and give you the best chance at recovering your losses.

Personalized Strategy

Every case of investment fraud is unique, and an effective approach requires a strategy built specifically for your needs. A skilled lawyer will take the time to understand your situation in depth, identifying critical details that can strengthen your case. By analyzing your financial history, the type of fraud involved and any relevant legal requirements, your lawyer creates a customized plan designed to maximize your chances of recovery. This tailored approach ensures that your case receives the attention and precision it deserves.

Dedicated Support

At Sonn Law Group, we understand how overwhelming it can be to face investment fraud. Our team is committed to providing the support you need at every step. Your lawyer will explain complex legal terms and keep you informed on every development, providing answers to your questions, addressing your concerns and offering steady guidance to help you feel confident and supported throughout the process. 

Why Choose Sonn Law Group?

Sonn Law Group’s long-standing success in helping clients recover losses speaks for itself. With over $200 million recovered for victims of fraud and misconduct, our history shows how dedicated we are to achieving the best outcomes for our clients. Some of our major victories include:

• $70 million recovered for investors in a Ponzi scheme
• $54 million recovery for investors in the Woodbridge Ponzi Scheme
• $50 million judgment against Ponzi scheme operators
• $16 million recovery against the Resolution Trust Corporation
• $11.1 million verdict against Citigroup (dba Smith Barney)

Our team’s extensive experience with complex fraud cases has helped countless victims rebuild their financial futures. We approach every case with dedication and care, fighting for the justice our clients deserve. What sets us apart is our commitment to you. With a no-fee consultation and a contingency fee basis, you don’t pay unless we win your case. 

Take Action With the Investment Loss Attorneys at Sonn Law Group

Investment fraud can be a painful experience, but you don’t have to face it alone. At Sonn Law Group, our experienced investment loss lawyers are here to guide you through every step. With a deep understanding of the legal process and a commitment to helping clients recover their losses, we’ll determine if you have grounds to make a claim and explore your best options moving forward.

Reach out today for your free consultation — together, we can begin rebuilding your future.DISCLAIMER: This article contains opinions and not statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. No attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified lawyer.