Individuals who have experienced the devastating effects of financial fraud can spend years replenishing their bank accounts and restoring their damaged credit. During this stressful time, knowing what steps to take to fully recover financially can help individuals and families move forward.
Properly Report the Crime
Early reporting of financial crimes like fraud is essential in helping victims obtain justice for these crimes. The longer it takes to report these types of crimes, the more likely the perpetuator of the fraud has spent or moved the proceeds making them more difficult to recover. Financial industry regulators should also be notified of fraudulent activity to help prevent future frauds.
Financial fraud may be reported to:
- Local District Attorney’s Office
- Local FBI Field Office
- Internet Crime Complaint Center
- National White Collar Crime Center
- S. Securities and Exchange Commission (SEC)
- S. Commodity Futures Trading Commission (CFTC)
- Financial Industry Regulatory Authority (FINRA)
- National Futures Association (NFA)
- North American Securities Administrators Association (NASAA)
- Federal Trade Commission’s Consumer Sentinel Network
Pursue Disgorgement Profits and “Fair Funds”
SEC enforcement actions often lead to the fraud perpetuator being required to relinquish their illegally obtained funds. Under its Office of Collection, the SEC can recover funds through methods including filing property liens, wage garnishment, and filing contempt actions. Fraud victims also may be entitled to a distribution of money penalties placed into a “fair fund” meant to deter others from committing similar misconduct. Recovered monies from either disgorgement or fair funds can be tracked through SEC enforcement actions. Public documents, including the distribution plan and list of injured investors, are part of most SEC court and administrative proceedings. This information is readily available online at the SEC’s “Information for Harmed Investors” webpage.
Monitor Credit and Third Party Recovery Offers
Monitoring your credit report is an important part of recovering after a financial fraud. Obtain a credit report from all three crediting reporting companies (TransUnion, Equifax and Experian) to help protect further damage from occurring, especially when the perpetuator of the fraud had access to important identifying information such as social security or bank account numbers.
Third party asset recovery companies frequently reach out to fraud victims promising to help recover lost funds. Individuals should fully investigate any of these types of companies before investing additional money. Asset recovery companies typically charge fees to allegedly file complaints with regulatory agencies. Similar claims are often made by companies who impersonate government agencies and then charge significant fees to help individuals recover investment fraud losses.
Seek Legal Guidance
In many cases financial fraud victims have the basis for filing a civil lawsuit to obtain compensation for their losses. Some private parties pursue justice by filing private class action lawsuits which seek compensation on behalf of all the harmed investors. Seeking civil remedies through a civil lawsuit or an alternative dispute resolution forum such as arbitration or mediation can be a complicated process. By consulting with an experienced securities litigation lawyer, individuals who have experienced fraud can determine what legal courses of action are available based on their unique situation.
Securities Litigation Lawyers at Shepherd, Finkelman, Miller & Shah, LLP Help Fraud Victims Obtain Compensation
The experienced securities litigation lawyers at Shepherd, Finkelman, Miller & Shah, LLP represent victims of securities fraud both nationally and internationally. Our offices are conveniently located in California, Connecticut, Florida, New Jersey, New York, Pennsylvania, and England to serve clients throughout the United States and internationally. Call us today to speak with an experienced securities litigation lawyer at 877-891-9880 or submit an online inquiry form.