New Jersey Securities Fraud Attorney

Scams in New Jersey cost investors millions of dollars each year. However, being taken advantage of in a securities fraud scheme is not always the end of the line. Financial recovery may be possible with the help of a New Jersey securities fraud attorney. Wolper Law Firm is dedicated to helping defrauded investors recover lost or stolen funds. We hold scam artists accountable and ensure that investors can take back control of their finances after being victimized.

Securities Fraud: What It Is and Who’s Behind It

Securities fraud occurs when an individual or organization uses false or misleading information to influence an investor’s financial decision, resulting in a loss for the investor and a gain for the fraudster. Some well-known types of securities fraud include insider trading and Ponzi schemes, but they can take a wide variety of other forms.

Some of those who may commit securities fraud include brokers, dealers, and financial advisors. Fraud in these cases may take the form of unauthorized trades in an investor’s account, recommendations for unsuitable investments, or a failure to perform due diligence on an opportunity that is brought to their desk.

Securities fraud can have far-reaching consequences for victims. They may lose significant amounts of money, leading to not just financial but emotional challenges. They may also lose confidence in their strategies or in the market overall, which can cause them to miss out on chances to build wealth to support themselves and their families in the future.

New Jersey Securities Laws and Regulations

Securities fraud is both a federal as well as state crime in New Jersey. The New Jersey Uniform Securities Law addresses the sale and registration of securities throughout the state and also imposes penalties on those who commit fraud. It is illegal in New Jersey to quote fictitious prices for securities, make orders solely to create the illusion of activity, and otherwise attempt to mislead investors. Furthermore, investors must be provided with a prospectus for registered securities under the Securities Act of 1933.

The New Jersey Uniform Securities Law creates an additional category of “senior-specific” protections, regulating activities undertaken by financial professionals who say that they have special training in advising senior citizens in the state. It is considered fraudulent to mislead seniors by stating that investment advisors have a “senior-specific” certification when the designation is self-conferred, non-existent, or primarily engaged in sales and marketing.

Major securities fraud in New Jersey is prosecuted by the Office of Securities Fraud and Financial Crimes Prosecutions.

Securities Fraud Examples: Real Cases in New Jersey

Securities fraud in New Jersey is unfortunately alive and well, with many recent real-world examples, such as the following:

• $38 million insider trading pharmaceuticals scheme: When Humanigen, Inc’s COVID-19 treatment drug Lenzilumab did not meet FDA approval, executive Dale Chappell allegedly avoided more than $38 million in losses by trading stocks on the material and non-public information.
• Father and son market manipulation scheme: A father and son, along with an accomplice, admitted to running a scheme to manipulate the stock prices of two small publicly traded companies. From 2014 to 2022, they gained control of the companies and used fake trades to inflate their stock values by up to 19,900%. This created the illusion of demand, allowing them to plan for reverse mergers, which could generate large profits. They concealed their involvement by using friends’ and family members’ accounts, tricking the market into believing the stock prices were genuine.
• $6.7 million investment fraud scheme: Two Middlesex County residents defrauded investors out of $6.7 million by falsely leading them to believe their money was allocated for investment in petroleum-based business ventures. In reality, the companies Prime Petroleum LLC and Petro Traders Group LLC were operated as sham enterprises, and the money was funneled into the fraudsters’ own pockets.

How Can I Recover My Losses if I’ve Been Defrauded?

If you have been victimized by securities fraud in New Jersey, you may be able to report the fraud to the Bureau of Securities. You should also consult with a lawyer about the possibility of filing a securities fraud lawsuit or FINRA arbitration claim. Just filing a complaint with Consumer Affairs will not take action to recover your lost or stolen funds. Instead, you will need to:

• Compile documentation, such as any contracts or clauses you have signed, as well as build a record of any wire transfers, checks, or online payments.
• Report your concerns to the broker’s supervisor, if applicable
• Speak with an attorney in order to build your claim and understand in what jurisdiction and timeline to file
• File your claim, paying all FINRA arbitration fees or other expenses. Your attorney can handle this step on your behalf, or you can represent yourself.
• Prepare for discovery and any hearings involved in your arbitration or court case with the help of your attorney
• Receive your decision from a panel of independent arbitrators or the judge, depending on how you have filed. Note that the FINRA arbitration process does not involve the option for an appeal, unlike a courtroom claim.

Is Securities Fraud Hard to Prove?

Securities fraud cases can be hard to prove because they often depend upon complex schemes and trades that might seem legitimate on the surface. For this reason, it is important to work with a securities fraud attorney who is experienced in the field. Securities fraud prosecution involves not only an understanding of state and federal law, but also knowledge of standard accounting practices, broker actions, and market trends.

Your attorney can help you understand what kinds of evidence will be most compelling to support your claim for compensation. They can parse through your account statements as well as trace shell companies and missing registrations through New Jersey securities portals. They can also advise you about what you will need to gather on your own end. Documenting even simple elements like unreturned phone calls, text messages or emails with untrue information, or routine account statements showing inflated transactions can help hold a bad broker in New Jersey accountable.

Get Help from a New Jersey Securities Fraud Attorney at Wolper Law Firm

At Wolper Law Firm, our attorneys have years of experience in the field of securities fraud law with proven results. If you need a securities fraud lawyer in New Jersey, contact us today for a complimentary consultation about your claim.