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Not Goldman Sachs – Don’t Be Afraid to Sue Your Investment Advisor

Posted In Business - By Techtiplib on Sunday, April 20th, 2014 With No Comments »

Investment fraud is a growing problem in the United States. The FBI has increased the number of agents dedicated to these crimes by 61% between 2008 and 2010 to address the problem. Despite the resources dedicated to fighting fraud, law enforcement agencies often have difficulty meeting the burden of proof needed to make an arrest.

Many people have also hear about all the “too big to fail banks” that aren’t prosecuted in criminal court. You shouldn’t let these cases stop you from getting justice if you have been swindled by an unscrupulous investment advisor.  As a victim of investment fraud, you should file a lawsuit against them in civil court even if the attorney general declines to prosecute.

Not Goldman Sachs – Don’t Be Afraid to Sue Your Investment Advisor

Don’t Be Afraid to File a Lawsuit

Many people are hesitant to file a lawsuit against their investment or financial advisor. They often feel that they are wasting their time after hearing about Goldman Sachs and other investment banking firms escaping criminal charges.

You shouldn’t let these cases deter you from filing a lawsuit against your financial advisor.  Here are some things that you should keep in mind:

  • The burden of proof is different in criminal and civil cases. In a criminal case, prosecutors need to prove guilt beyond a reasonable doubt. However, in civil lawsuits, the burden of proof is a preponderance of evidence. You should have a very high chance of winning your lawsuit if you have compelling evidence.
  • Large institutions like Goldman Sachs executed very complex trades that regulators and law enforcement officials had difficulty understanding. Your investment manager was probably not doing anything nearly as sophisticated. Your case will probably be much more straightforward.
  • Your investment advisor won’t have access to the same legal resources as large investment banks. You may be able to file a class action lawsuit with other victims.

The average victim of investment fraud faces losses of $15,000, but some victims lose millions. You shouldn’t be afraid to hire a team that offers litigation for your investment case.

Find Grounds for Lawsuit

If you are a victim of financial fraud, then you deserve restitution for your losses. However, you will need to make sure that you collect the evidence needed to file a lawsuit. Here are some things that you will want to do.

Decide what grounds you should file your lawsuit on. You will need to prove that your financial advisor acted recklessly or fraudulently. Here are some things that you will want to prove:

  • They neglected to inform you about the risks involved.
  • They failed to develop a strategy that aligned with your goals.
  • They overtly lied to you.
  • They didn’t disclose a conflict of interest.
  • They retained money for services that were never rendered.

You need to make sure that you can prove your case. Collect all records and consult with other clients to prove that they violated their oath. You will need all the evidence that you possibly can to win your case.

You shouldn’t be afraid to file a lawsuit, but you are going to need to be prepared to do a lot of work to recoup your losses.

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