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New York, NY(212) 365-4875
Clemenza Concierge

Money lost with a broker or adviser

The investment wasn't what they said it was

It paid steady interest for a while, the way they said it would. Then the payments stopped, the website went quiet, and the person who sold it to you stopped returning calls. Or the promised safe income product turned out to be a complicated bet you would never have chosen if anyone had explained it.

Investment fraud ranges from outright schemes to sales pitches that left out the facts that mattered. Both can give rise to a claim. What you can recover often depends on who sold it to you and whether anyone with assets can be held responsible.

Tell us what happened

Signs something was wrong

Looking back, people often recognize the same warning signs:

  • Returns promised as high and certain, or high and low risk at the same time.
  • Pressure to decide quickly, or to keep the opportunity private.
  • A seller who wasn't registered, or a product that was not.
  • Returns that stayed smooth no matter what the markets did.
  • Trouble getting your money out, and new excuses each time you asked.

Who was involved matters

The person at the center of a fraud often has nothing left by the time it is discovered. But others may have played a part: the brokerage firm whose representative sold the product, the firm that should have supervised them, or a firm that held or moved the money. A lawyer will want to know every person and company you dealt with, including the one whose name was on the checks or the account statements.

Stop the bleeding

Don't send more money to recover what you lost, even if you're told a fee or tax will release your funds. That is a common second scam. Be wary of anyone who contacts you out of the blue offering to get your money back. You can report investment fraud to the SEC, to FINRA and to your state's securities regulator, and doing so doesn't stop you from pursuing a private claim.

What helps to have ready

  • Any offering document, brochure, website screenshot or pitch deck.
  • Records of every payment you made and every payment you received back.
  • The names of everyone who sold, recommended or handled the investment, and the firms they worked for.
  • Emails, texts and notes of what you were told about risk and returns.
  • Account statements from wherever the money was held.
  • Any letters from a receiver, trustee or regulator if the scheme has already collapsed.

Where we fit in

A lawyer at our firm looks at your case. If we take it and another firm is better placed to lead it day to day, we choose that firm from firms we have vetted for their expertise and track record, and we stay responsible for your case with them.

Questions people ask

A court has appointed a receiver for the company. Do I still need a lawyer?

A receiver (a person a court puts in charge of a failed company's assets) may run a claims process for investors, and taking part in it is usually important. A lawyer can also look at whether anyone outside the scheme, such as a brokerage firm, may be responsible for part of the loss.

I got some payments back before it collapsed. Could I have to return them?

In some cases a receiver or trustee may seek to recover payments made to investors, particularly anything paid out beyond what they put in. It's a good reason to talk to a lawyer before you respond to any such letter.

It was cryptocurrency. Does any of this apply?

Sometimes. It depends on what you bought and how it was sold to you, and the rules for digital assets have been changing. Tell us who sold it to you and how, and the lawyer reviewing your inquiry will look at whether any claim is realistic.

More about money lost with a broker or adviser

This page explains things in general terms. It is not legal advice about your situation, and the law differs from state to state.