The Complete Guide to Investment Recovery

A man is holding his head because of losing money
November 7, 2023

Investment recovery is a term that often goes unnoticed until you find yourself entangled in a financial mess or have lost your precious nest egg. If you’ve been subject to investment fraud or broker misconduct, understanding how to reclaim your lost funds is crucial. This guide will briefly explain what investment recovery is, how to recognize signs of investment fraud, and the legal pathways available for recovery.

What is Investment Recovery?

Investment recovery refers to the legal process of reclaiming funds lost through unethical, negligent or fraudulent investment activities. This becomes necessary when you’ve been a victim of scenarios like investment fraud, misrepresentations, negligence or unauthorized trading by your broker.

The Prevalence of Investment Fraud

Investment fraud is alarmingly common and has been on the rise. According to data from the Federal Trade Commission (FTC), consumers reported losing nearly $8.8 billion to scams in 2022, up from $2.4 billion in 2021, with investment fraud accounting for more losses than any other category.

Recognizing Signs of Investment Fraud

Being vigilant can save you from falling into the trap of investment fraud. Here are some common red flags:

  1. Unrealistic Promises: Guarantees of high returns with little to no risk.
  2. Pressure Tactics: Urging you to invest quickly, often using scare tactics.
  3. Lack of Transparency: Failure to provide essential information or documentation.

It’s important to listen to your intuition. If you feel that your advisor or broker is pressuring you into doing something you are uncomfortable with, or if anything else about the interaction seems off, hit the pause button. When it comes to your finances, an ounce of prevention really is worth a pound of cure.

Legal Pathways for Investment Recovery

If you are a victim of investment fraud, you have a couple legal options:

  1. Arbitration: A quicker, often less expensive route for dispute resolution.
  2. Litigation: A more traditional legal pathway, allowing for a thorough examination of evidence.

Arbitration, whether in FINRA or in another dispute resolution forum, and civil litigation are both viable options for many investors, but the right path for you will depend on the specifics of your case and the documentation you signed. That’s why it’s always best to consult with a legal advisor to determine the best course of action.

A group of business people sitting around a table.

How to Choose an Investment Fraud Attorney

Selecting the right attorney or legal advisor is one of the most important steps in a successful recovery process. Two things to pay special attention to are the advisor’s professional experience and how you feel during the initial consultation.

  1. Experience: Look for an attorney with an established track record in successful investment recovery.
  2. Consultation: Use the initial consultation to gauge the attorney’s expertise and your comfort level with them.

Don’t Hesitate to Seek Legal Advice

Having a working understanding of investment recovery is important for all investors, not just those who have fallen victim to investment fraud. Knowing how to spot the signs of potential fraud may help to save you from significant losses.

However, understand that even sophisticated, experienced investors frequently fall victim to fraud. If you have reason to believe that you’ve been a victim of investment fraud, don’t hesitate to seek professional advice from Girard Bengali, APC.

How Girard Bengali, APC Can Help

If you suspect you’ve fallen victim to investment or securities fraud, Girard Bengali, APC, may be able to help. We are one of a select group of law firms located in Los Angeles that addresses all types of FINRA, securities and investment law matters, and we can help you navigate the complex legal landscape related to investment fraud. We are committed to fighting for individuals from all walks of life who have suffered financial losses due to deceptive investment practices.

If you’ve been the victim of investment fraud, you deserve a knowledgeable and aggressive advocate who will fight for your rights. Contact Girard Bengali, APC, today to schedule a free consultation and learn about your options.

Girard Bengali, APC, Investigating Brandon Wesley Hanna and Creative Planning, Inc.
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