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Fraud, Omissions, Misrepresentations

  1. What Is Fraud?
  2. What Is an Omission?
  3. What Is a Misrepresentation?
  4. How Can I Prove That My Broker/Advisor Engaged in Fraud?
  5. What Are Common Signs That My Broker/Advisor Has Engaged in Fraud?
  6. What Should I Do if It Seems My Broker/Advisor Engaged in Fraud?

What Is Fraud?

Generally, fraud refers to an intentionally deceitful act that is intended to take advantage of an unsuspecting party. Fraud comes in many forms, ranging from false affirmative statements to intentionally misleading statements to conscious omissions. Fraud is a civil and criminal violation of both state and federal laws.

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What Is an Omission?

While fraud is commonly carried out by making some kind of misleading affirmative statement, fraud can also result from the failure to disclose certain information. Fraud by omission occurs when a party knows of and omits material information that it knows the opposing party does not have or cannot ascertain.

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What Is a Misrepresentation?

A misrepresentation is typically a false statement about a material fact that is intended to be taken as truth and influence another. Misrepresentations fall into three main categories: innocent misrepresentation, negligent misrepresentation, and fraudulent misrepresentation. The circumstances of the misrepresentation will dictate the potential claims available to an investor.

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How Can I Prove That My Broker/Advisor Engaged in Fraud?

To successfully bring a claim for fraud, the victim must typically prove the following elements: (1) the making of a statement that is materially false/misleading OR the omitting of a material fact, (2) an intent by the fraudulent actor to deceive (scienter), (3) reasonable reliance on the false/misrepresented/omitted fact by the victim, and (4) injury sustained by the victim due to such reliance.

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What Are Common Signs That My Broker/Advisor Has Engaged in Fraud?

Fraud conducted by brokers/advisors can come in many different shapes and sizes. For example, if your broker intentionally misrepresents or fails to tell you about the risks associated with a particular investment, such statements or omissions might constitute fraud. If all the investments in your portfolio seem to move differently than the overall market or perform differently than your broker/advisor explained, your broker/advisor may have engaged in fraud. Fraud also comes in more blatant or common forms, such as Ponzi Schemes, pump-and-dump schemes, and embezzlement.

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What Should I Do if It Seems My Broker/Advisor Engaged in Fraud?

If any of the conduct mentioned above has occurred in your relationship with your broker/advisor, it is highly recommended that you consult counsel that is highly experienced in investment fraud matters, like the lawyers working at Malecki Law, to review the merits of your claim and to help file a claim.

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Testimonials From Former Clients
I highly recommend Jenice and her team at Malecki Law. I had a challenging, and lengthly case. Jenice was professional, very knowledgeable, and a pleasure to work with. She managed to make the process far less stressful during a very difficult time. They care about their clients, and it definitely shows. Mario
Jenice is truly a miracle worker and one of the top securities lawyers. She handled a very difficult case for us, displaying her legal knowledge, intelligence, and savviness throughout the process. I cannot recommend her enough. The quality of work from her team rivals that of corporate law firms. She was always available, extremely professional, and made sure to know all the details of the case. We were very fortunate to have been referred to Jenice and highly recommend her for any securities related legal issues. Nathan A.
An excellent professional who represented us in trial regarding a bank fraud, an unexpected and difficult time. A professional that worked hard, persevering and who stood toe to toe against firms that had a team of excellent lawyers backing them up. Her unflinching determination really stands out, it makes you feel you have someone who really cares about trying to recover what you lost from the people that wronged you. Salomon Levi
It is difficult to thank you in words when gratitude comes from the heart, so I will try to link feelings with writing. It is essential for us to mention your excellence as a professional, your aptitude on legal fields, and your unavoidable persistence. All of these virtues that elevate the profession you exercise in such an admirable way, go hand in hand with your sense of ethics, your human warmth and the transparency in your actions. To sum up, thank you for being a listening ear and for having the right word while transmitting information about the legal process. Having you as our representative during such an adverse situation was a privilege and enough reason for our eternal gratitude. Angeles Aparain
To say that my securities litigation was complex would be a severe understatement. With multiple parties involved and spanning many years, trying to understand the issues was daunting to say the least. Jenice and her team broke down the transactions by segment and by party uncovering every hidden expense. In the end, I was more than happy and could not thank Jenice and her team enough. I would not hesitate to recommend Jenice to anyone. She is highly professional, incredibly knowledgeable, well connected to industry experts, has a tireless work ethic and is so pleasant and easy to communicate with. Five stars for sure! Andrew Loughrane