There are many laws in place to regulate the financial industry. If someone working in the financial industry violates any of these laws, they could face criminal charges, as well as opening themselves up to criminal charges. If you lost money in a securities fraud scam in North Carolina, hiring an experienced attorney is the best first step for recovering compensation.
At Meyer Wilson, our experienced team has been helping securities fraud victims recover compensation for their losses for the last quarter of a century. Our team of investment fraud lawyers serving North Carolina will do everything in our power to get you the money you need. Contact us today to set up your free case evaluation with one of our attorneys.
North Carolina Securities Fraud Laws
In North Carolina, securities fraud is covered under North Carolina General Statutes 78A-8, 78A-9, and 78A-12.
North Carolina General Statute 78A-8
Under this statute, when connected to an offer, sale, or purchase of a security directly or indirectly, it is unlawful for a person to:
- Employ any device, scheme, or artifice to defraud another party.
- Omit or make any false statements about material facts with the intent of misleading others.
- Engage in any act, practice, or course of business that would constitute fraud or deceit of another party.
North Carolina General Statute 78A-9
Under this statute, it is unlawful to make or cause to be made a document filed in any securities-related matter that contains intentionally false or misleading information.
North Carolina General Statute 78A-12
Under this statute, it is unlawful to:
- Willfully quote a false price for a security.
- Make transactions with a security that are not beneficial to the investor but instead are meant to create the appearance of active trading in the security to affect the market of the security.
- Employ any other deception or fraud to manipulate the market, including intentionally issuing false or misleading analyses, reports, or financial statements.
These cover only some of the acts prohibited under the securities fraud laws of North Carolina. Anyone guilty of violating these or other state or federal securities fraud laws can face criminal charges as well as civil lawsuits and FINRA arbitration.
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Common North Carolina Securities Fraud Schemes
Fraudsters employ a variety of securities fraud schemes and are coming up with new ways to manipulate investors every day. However, some of the older time-tested scams remain the most commonly used today.
Whether you know what it entails or not, you have probably heard of a Ponzi scheme. In this favorite scam of fraudsters, they get a group of people to invest money with the promise of large returns on their investment. They then sign up a second round of investors and use the money they put in to pay off the initial investors.
The profits shown by the early investors are used to entice further investors. The fraudster continues to use the new money coming in to pay the earlier investors, all the while skimming a substantial profit off the top for themselves.
Eventually, there will come a point where there are no longer enough new investors to pay off the older investors, and the Ponzi scheme will collapse, with investors facing significant losses.
With a pump-and-dump scheme, a fraudster will work to artificially inflate the value of a stock in which they have made a significant investment. This pumping up of the value is accomplished by getting others to invest by making direct or indirect recommendations about the stock using false or misleading information.
Once enough people have invested in the stock to drive its price up, the fraudster will dump their shares off for a substantial profit, leaving those still invested to suffer the losses as the stock price plummets.
While these are some of the most common securities fraud scams being used today, they are far from the only means by which a financial advisor or other person working in the financial industry can defraud an investor. If you lost money in a securities fraud scam, an experienced investment fraud lawyer can help you recover damages from the liable party.
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Criminal Penalties for Securities Fraud in North Carolina
Those charged with securities fraud can end up serving a lengthy prison sentence and be forced to pay restitution to their victims, along with paying additional fines. The penalties increase with the amount of money stolen, along with other factors.
When the perpetrator of the fraud is charged with a federal offense, they may face more severe consequences than if they are convicted of violating North Carolina law.
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Civil Penalties for Securities Fraud in North Carolina
In addition to criminal charges, a fraudster can also face civil lawsuits from their victims. If you suffered financial losses in a securities fraud scheme, you can pursue compensation by filing a lawsuit or arbitration claim. You will not only be able to pursue compensation for the money you lost but may also be able to recover damages for the harm this financial loss caused to your life.
The award-winning team of securities fraud attorneys at Meyer Wilson has secured over $350 million for our clients. We can help you file a claim against the party who cheated you out of your money as well as the financial institution that employs them.
We will work to ensure that we identify all of the liable parties in your case to give you the best chance to recover the full value of your claim.
Hire an Experienced Investment Fraud Lawyer Serving North Carolina Today
After suffering financial losses as a result of securities fraud, you shouldn’t wait to secure legal representation. The sooner your attorney can begin working on your case, the easier it will be for them to build a strong claim on your behalf. The experienced legal team at Meyer Wilson will get to work immediately to ensure you recover the compensation you need.
Contact us today by filling out our online contact form or by giving us a call to schedule a free case evaluation with a member of our legal team.
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