Is Securities Fraud Hard to Prove?

It may be hard to prove securities fraud, depending on the circumstances. In certain types of cases, but certainly not all, you may have to show that the defendant intended to deceive, manipulate, or defraud you.

To prove this point, it helps to have a securities fraud lawyer at your side. It is also important to understand that not all cases of investment fraud require proof of such intent.

A securities litigation lawyer can collect evidence on your behalf. They will search for ways to prove that the defendant in your case committed malicious acts that caused you to suffer financial losses. If your attorney builds a successful argument, you are well-equipped to achieve your desired case result. 

What Is Securities Fraud?

Securities fraud can mean many different things but can refer to a white-collar crime in which a party uses deception or lying for personal financial gain. With their actions, this party could cause investors to lose money. Forms of securities fraud include:

• Making misleading statements or choosing not to disclose important information about investment opportunities
• Engaging in insider trading and using non-public information to buy or sell stocks
• Requesting an upfront fee while promising investors to deliver significant returns but failing to deliver these results

There are many actions you can take to avoid securities fraud and Ponzi schemes. Regardless, you could inadvertently fall victim to securities fraud. If this happens, consult with a securities fraud lawyer to review your legal options in detail. 

Why Can Securities Fraud Be Hard to Prove?

Securities fraud cases sometimes involve complex financial transactions and market activities. In  some cases, the victim must establish that the defendant was intentionally trying to defraud you.

This can be challenging in cases where this is required, as you must provide compelling evidence that shows that the defendant’s actions were intentional.

How Can You Prove Securities Fraud?

Partner with a lawyer who understands how to prove securities fraud. Your attorney can teach you about the two signs of securities fraud and other investment fraud red flags. They can help you verify that the following elements are present in your case:

Omissions or Misrepresentation

In a situation when your broker lies by omission or misrepresentation, you could have grounds for legal action against them. Your attorney can gather financial documents and other evidence to support your claim. This proof could help you show the court that this party intentionally did not share or mislead you about information relating to your investment. 

Reliance

The information you received regarding an investment prompted you to move forward with it. Thus, you relied on the party that provided you with this information to act in your best interests.

If this party omitted or misrepresented information, the basis for your investment decision was flawed, and you could have a legitimate securities fraud case against them.

Damages

You lost money because you made an investment decision based on information you received from a party. The decision and your financial losses are direct results of the party’s actions. Therefore, this party could be responsible for your damages. 

Causation

It is your responsibility to establish a causal relationship between a party’s actions and your financial losses. Your lawyer will work diligently to find proof that highlights this relationship. If you have a strong body of evidence, the court may be inclined to agree with your argument and award you damages. 

If you are weighing the pros and cons of initiating a securities and investment fraud case, request legal help. A securities fraud lawyer will consider every legal avenue to help you secure compensation from anyone responsible for investment misconduct. They can put you in a position to recover damages for your investment losses. 

Partner with Securities Fraud Lawyers Who Proudly Represent Clients Across the Country

Ultimately, securities fraud may be challenging to prove in certain cases. If you hire an experienced securities fraud attorney as your legal representative and advocate, you can boost your chances of getting a favorable case outcome. Your lawyer prioritizes your case and looks for ways to prove that you are the victim of investor misconduct. 

The Meyer Wilson team has more than 75 years of combined legal experience. Our lawyers are nationally recognized for their work in securities fraud cases and will help you in any way they can. Contact us to get started.