Jul 222012
 

In times of economic hardship and crisis, cases of stock broker fraud increase. People are desperate to recoup some of the losses caused by the economic crisis. So, mismanagement and fraudulent schemes abound. In cases of stock broker fraud, there may be claims available under both federal and state law.

Claims Available Under the Pennsylvania Securities Act

Under the Pennsylvania Securities Act, brokers who offer, sell or otherwise purchase any security in the state may not engage in any of the following activity:

  • fraud,
  • deceit,
  • material misrepresentations of fact,
  • insider trading, and
  • market manipulation.

In addition, the Act prohibits investment advisors from engaging in similar conduct. More importantly, advisors may be liable for failing to disclose a conflict of interest.

Recovering Damages Against a Stockbroker or Investment Advisor Under the Pennsylvania Securities Act

The Pennsylvania Securities Act permits victims of stockbroker fraud and mismanagement to file legal claims to recoup their losses. Under the Act, the following kinds of financial damages may be recovered in a stock broker fraud case:

  • investment fees,
  • difference in the price of the stock,
  • distributions or income in cash or in kind, and
  • interest.

Also, in some instances, punitive damages may be appropriate.

Related Legal Information: Pennsylvania Securities Civil Litigation Article: The Statute of Limitations in Securities Cases

For more information, contact our Pennsylvania securities and stockbroker fraud lawyers. Call 215.925.4451.

The lawyers at Schwartz & Blackman handle securities litigation matters in the Pennsylvania and New Jersey area:

  • PA: Berks County, Bucks County, Chester County, Delaware County, Montgomery County, Philadelphia County, Allentown, Lehigh Valley, Norristown, Philadelphia
  • NJ: Atlantic County, Burlington County, Camden County, Gloucester County, Mercer County, Middlesex County, Monmouth County, Camden, Cherry Hill, New Jersey shore cities

*This website does not provide legal advice. Every case is unique and it is important to get a qualified, expert legal opinion prior to making any decisions about your case. See the full disclaimer at the bottom of this page.

Published: July 22, 2012

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