If you believe that you became the scapegoat of an investment scam or need to confirm a lawsuit against one of the stock dealers, you have to hire an investment fraud lawyer. Apart from these situations, there are many events where you must need a skilled investment fraud attorney, which we will discuss below.

The securities and investment law is a tricky and broad area of law. In addition to that, there are numerous laws, regulations, and restrictions to follow and a large body of case law to keep track of. Besides that, due to arbitration prerequisites in several investment contracts, the investors have to take their disputes to FINRA arbitration rather than to court. Because of all this, litigation can get relatively complex.

If you want to hire an investment fraud lawyer, make sure to visit https://www.mdf-law.com/.

This commercial litigation firm has dealt with several cases related to investment fraud and securities fraud. Attorneys in this firm have years of real experience and have accomplished numerous individual decisions or arbitration prizes for an extra of $1 million.

Top 7 Warning Signs That Enhance The Need To Hire An Investment Fraud Lawyer

Here, we have listed some of the crucial signs and situations related to investment scams. If you have come across any of these events, make sure to hire a skilled investment fraud attorney without any delay.

1. Massive Changes In The Investment Portfolio


Sharp drops in the value of an investment can quickly attract the attention of investors. However, when investments rise rapidly, many of us do not show any concern, and no one gets suspicious about that as well. We might even congratulate our broker. However, if an investment generates a consistent monthly return during a period when the market is seeing substantial declines, you can consider it as an early warning sign.

When there are significant changes in your investment, whether losses or profits, you should start to inquire. Get in touch with the broker’s manager and seek a meeting to evaluate your account. It would not do any harm to check the accounts. In addition to that, you can catch a mistake if it does happen.

2. Someone Approaches You Uninvited

If a person contacts you without your request for that company, whether by mail, mobile, or email, you have to conduct a thorough investigation of that individual or firm before continuing with any sort of investment. If you are hesitant, talk to a competent person you can trust to seek their opinion before proceeding.

3. Abrupt Fluctuations In The Account Activity

Take the time to study your account activity statements each month, either electronically or on paper. Make sure not to totally depend on the account statement provided by your broker. Account activity differs for every investor. However, if you set a baseline for your normal, it is vital to monitor your statements for any unexpected alterations.

For instance, you can check for a flurry of trade confirmations, massive swings in or out of a specific investing plan. Sometimes, you might be relatively busy, making it hard to dig into the details of your account holdings. However, by keeping a watch on your portfolio, you can notice possible problems as soon as they arise.

4. Someone Pressures You To Sign Instantly

If the individual or organization you plan to work with is putting you under distress with invitations like limited-time-only chances or different high-tension sales moves, it is time to back off from that firm.

Before registering for their services, a trustworthy broker or firm prefers to make sure that you are taking a conscious decision without any reluctance or unanswered issues. If the broker pressures you to sign quickly, it is possible that the individual who is pressuring you is trying to keep you from checking into their offer clearly.

5. Lack Of Contact With The Account Advisor


You have to contact your consultant within an acceptable timeframe if you have any queries or questions. It is clear that there is an issue with your account when the adviser is regularly unavailable or does not answer your calls when you contact them.

Another warning sign is when your adviser is secretive and does not respond with direct answers to your inquiries. High-pressure sales methods, claims of little to no threat, being unlicensed, or the advertising of unregistered assets are all signs of a problem with your advisor.

6. The Investment Offer Seems Misleading

In terms of risk, investments might range from very low to relatively high. On the other hand, the payoff is generally proportional to the level of risk. For example, a low-risk initiative will almost always give a low reward, whereas a higher-risk one will almost always yield a larger reward.

If the investment consultant or firm promises a massive reward that significantly exceeds the risk, you should consider it a red flag. It is because that investment might not be valid, and make sure to investigate further before investing.

7. Someone Gives You Insider Information

Insider trading is banned in some places. As a result, no reputable dealer or investment company would try to convince you that you have access to data that others do not get. However, if they do, it is possible that they are using fraud to persuade you to register for a fake opportunity. Hence, prior to investing in a company or a deal, make sure to use some time in order to check whether the offer is factual.

Bottom Line


As you can see, there are many situations that might happen when it comes to investment fraud. As investments usually revolve around a huge sum of money, the percentage of investment fraudsters and scams is increasing day by day. It is another reason you have to be careful while making and dealing with investments. In case if you encounter any of the above-listed signs, it is better to hire an investment fraud lawyer as soon as possible.