On behalf of Mihalek Law posted in Securities Law on Friday, May 22, 2015.
Because most people don’t feel that they have the information necessary to make investment decisions on their own, it is not uncommon for them to work with securities brokers or other professionals in the field to manage their money. As are result, when a broker commits securities fraud victims can feel blindsided and vulnerable. This can make it difficult to know who to trust.
When such a situation comes to light, investors could try to recoup the money that they lost. This is not always easy to do. Recently, some individuals who were victims of securities fraud were once again fraud targets—this time in connection with the restitution they were seeking.
After they reached a settlement regarding a restitution amount, some investors were told by a purported law firm that they could get their restitution funds but that they must first pay a fee. A man who was approached and told that he would have to pay $7,500 to secure restitution of $30,000 (60 percent of what he originally invested), contacted authorities, bringing the scam to light. At least one other couple also contacted authorities after being approached with a similar scheme.
In reality, the “law firm” was not authorized to distribute the restitution agreed to in the settlement. Instead, it appears that after securing the fee the firm would not take any further action.
Matters involving securities can be complicated. For that reason when issues arise it is important to have someone on your side who understands how things work. In most cases that is a securities fraud lawyer. Working with a lawyer throughout the process could prevent additional problems from arising.