People working in the financial sector must abide by all applicable laws and regulations when handling the money of their clients. Failure to do so could leave them open to legal action, including both criminal penalties and civil lawsuits. If you were the victim of securities fraud in Illinois, an experienced lawyer can help you recover damages.
At Meyer Wilson, we have a long history of winning big for our clients. If you lost money because your financial advisor broke state or federal securities fraud laws, we will work diligently to help ensure you recover the money you need. Contact us today to schedule a free case evaluation with one of our Illinois investment fraud lawyers.
Illinois Securities Fraud Laws
Securities fraud in Illinois is governed by both state and federal regulations. A variety of fraudulent or deceptive practices regarding the sale of securities are covered under these laws. One of the many offenses a financial advisor can face charges for is dealing in securities without having a permit or being registered.
If anyone working in the financial industry withholds, distorts, or misrepresents critical information about a security, they can face criminal charges and open themselves up to FINRA arbitrations or civil lawsuits.
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Common Securities Fraud Schemes in Illinois
There are many different forms of securities fraud. Fraudsters continue to develop new ways to defraud investors for their own financial gain. However, despite the growing number of ways to commit securities fraud, some old schemes remain the most popular.
Ponzi Schemes
Most people have heard the term Ponzi scheme. However, not everyone understands what this type of scheme entails. In a Ponzi Scheme, a fraudster promises big returns to investors if they entrust them with their money. They then sign up further investors and use the money they invest to pay the original investors while pocketing a substantial amount for themselves.
When the early investors report big gains, it makes it easier to attract new investors. This helps create a cycle where the money from new investors continues to pay earlier investors while the fraudster keeps skimming money off the top.
Because of the nature of this scheme, it will eventually collapse as there will reach a point where there aren’t enough new investors to continue to pay the old investors. However, in some instances, it can take years for it to all collapse, and the fraudster will clear substantial profits while their victims suffer heavy losses.
Pump-and-Dump Schemes
With pump-and-dump schemes, fraudsters create artificial inflation of the value of a stock in which they are heavily invested by getting others to invest through either direct or indirect recommendations, using information that is misleading or downright untrue. After creating a significant overvaluation of the stock, they will sell off their shares, causing the price to plummet.
All of those who still have their money invested in the security will suffer substantial losses, while the fraudster turns a huge profit through the sale of their overvalued shares.
Ponzi schemes and pump-and-dump schemes may be two of the most common types of securities fraud, but they are far from the only ways in which fraudsters scam investors out of their money. If you suffered losses due to any type of securities fraud, an experienced lawyer can help you file a claim to recover compensation.
Criminal Penalties for Securities Fraud in Illinois
Those convicted of securities fraud will face significant penalties with the possibility of an extended prison sentence and hefty fees being imposed. The severity of the penalties the fraudster receives will vary depending on the money involved in the crime, with harsher punishments for those guilty of larger securities fraud schemes.
Furthermore, those charged under federal law will typically face harsher sentences than those who are being charged at the state level.
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Civil Penalties for Securities Fraud in Illinois
In addition to the fraudster facing criminal charges, you could also pursue a civil lawsuit if you suffered losses as a result of their action. When filing a civil lawsuit, you could potentially recover all the money you lost as well as additional compensation to pay for any ill effects the loss had on your life.
Working with an experienced securities fraud lawyer will significantly improve your chances of recovering the money you need. The award-winning team at Meyer Wilson has secured over $350 million in damages for our clients.
Your attorney can help identify all liable parties in your case to help ensure you recover the full amount to which you are entitled.
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Get Help from an Experienced Investment Fraud Lawyer Serving Illinois Today
After learning that you have been victimized, it is critical that you reach out to an experienced attorney as soon as possible. The sooner your lawyer can get started on your case, the easier it will be to build a strong claim and get you the money you deserve. The experienced team at Meyer Wilson is ready and waiting to help with your case today.
Contact us by phone or through our website to get started on your claim today with a free case consultation with a member of our legal team.
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