Can You Sue Someone for Investment Fraud? Legal Steps to Recovery

If you’ve suffered financial losses because of investment fraud or broker misconduct, one of the first questions you’ll ask is: “Can you sue someone for investment fraud?” The answer is often yes. Whether your advisor misrepresented investments, made unauthorized trades, or breached their fiduciary duty, legal pathways exist to help you recover your losses. However, the process isn’t always simple, and the outcome depends on the circumstances of your case and the steps you take to pursue justice. We’re here to guide you through the process of seeking justice and reclaiming your losses.

What Is Investment Fraud?

Investment fraud occurs when a financial professional or firm intentionally misleads investors, hides key information, or otherwise acts against their client’s interests. Examples include:

• Misrepresentation or Omission: Not disclosing the risks or material facts about an investment.

• Unsuitable Recommendations: Recommending investments that do not match the investor’s risk tolerance or goals.

• Unauthorized Trading: Making trades without the client’s consent.

• Overconcentration: Investing too much in a single product or asset class.

• Ponzi Schemes or Theft: Diverting funds for the broker’s own use.

While mistakes happen in the market, fraud and misconduct are not mere errors—they are violations of securities laws. If you suspect your losses stem from these violations, you may have a valid legal claim to recover your money.

Understanding these forms helps identify if you’ve been victimized and informs your next steps. Watch this video to learn more about red flags for investment fraud:

Legal Avenues for Filing a Lawsuit

If you’ve been a victim of investment fraud, the law provides several avenues to seek compensation:

1. FINRA Arbitration: Most disputes between investors and brokers are handled through FINRA arbitration, not the courts. If you signed an agreement with your brokerage firm, it likely includes an arbitration clause requiring you to resolve claims through this process. Arbitration is quicker than litigation, but it has strict procedures, and decisions are usually final.

2. Lawsuits in Court: In some cases, you may be able to sue the broker, advisor, or firm in court. This typically applies when arbitration clauses don’t exist or when other legal claims—such as breach of contract—are involved.

3. Recovery Through Class Actions: If many investors have been harmed by the same fraud (like in Ponzi schemes), a class action lawsuit may provide a collective path to compensation.

Key Steps When Suing for Investment Fraud

To build a strong case to sue someone for investment fraud, consider the following steps:

• Collect Evidence: Gather all documents, such as account statements, emails, and marketing materials.

• Consult an Experienced Attorney: Investment fraud cases can be detailed. Our team can guide you through:

  • Understanding your rights and applicable claims.

  • Filing your claim within the statute of limitations to avoid procedural pitfalls.

  • Crafting a strategy tailored to your situation, whether it’s a securities fraud claim or another approach.

Why Professional Guidance Matters

Navigating the legal process without professional assistance can be daunting. With our support:

• We Simplify the Complexities: From evaluating your documentation to understanding your legal position, our experienced team can make the process clearer.

• We Protect Your Rights: Ensuring you are informed and fully aware of your options is a priority.

• We Work Toward Recovery: Our goal is to help you reclaim your losses and achieve peace of mind.

Take Action Now

If you’ve been the victim of investment fraud or broker misconduct, you don’t have to accept your losses. You have the right to take action—through arbitration, litigation, or regulatory channels—to hold wrongdoers accountable and fight to get your money back. Can you sue someone for investment fraud? Yes, absolutely, but your likelihood of success depends on the case you build with the help of a securities fraud attorney. With an experienced attorney by your side, you can navigate the legal process and increase your chances of a successful recovery.

Don’t let fraud go unchecked—justice and compensation may be closer than you think. Investment fraud can leave you feeling powerless, but know that you don’t have to face this challenge alone. If you suspect you’ve been a victim, reach out to Meyer Wilson for professional legal guidance. We’ll help you protect your rights, understand your options, and take steps toward reclaiming what was lost. Your path to justice starts with a simple conversation.