Investment Fraud Lawyers Helping Clients Throughout California
When a broker-dealer, investment firm, registered investment advisor, registered
representative, sponsor, or promoter uses investment proceeds for an undisclosed
purpose, they have committed securities fraud. California law prohibits
fraud in the offer and sale of securities. Corporations Code Section 25401
makes it illegal to offer, sell, or purchase securities based on untrue
statements or omissions of material facts.
If you have been misled and proceeds for your investment were used for
an undisclosed purpose, you have the right to sue to for damages or rescission.
California law does not require the investor to prove that he or she actually
relied upon untrue statements or material omissions. This is an important
benefit for defrauded investors.
However, in order for a
securities fraud claim to be governed by California Corporate Securities Law, the offer
to sell or buy must have emanated from California. The investor does not
have to be a California resident to sue under the California Corporate
Securities Law of 1968.
It’s important to note that relief claims for securities fraud are
governed by a statute of limitations. This statute requires the case to
be filed within five years of the violation, or within two years after
the violation was discovered by the plaintiff.
Consequences of Using Proceeds for Undisclosed Purposes
Punishments for security fraud exchange can be extremely harsh. If you
are convicted for using proceeds for an undisclosed purpose, you will
face imprisonment, fines, or both. While prison sentences can range between
two to five years, fines for a security fraud conviction can be as high
as $25 million.
Speak with our Legal Team Today. Call (310) 220-0988
Whether you are dealing with broker-dealers, financial institutions, promoters,
sponsors, or ponzi scheme operators, we have the legal skills that you
need to successfully defend your case. Our
investment fraud lawyers have recovered millions of dollars in hundreds of cases for thousands
of individuals and institutions. Let us put our successful track record
and 60+ years of combined legal experience to work for you.
Contact our California team of investment fraud attorneys
to get started on your free case evaluation.