Securities Law Basics, Volume 2

Are you the victim of a fraud? Did your financial advisor, broker, or agent promise returns, but now he won’t call you back, or he keeps telling you he’ll have the money next week? What should you do?

First, gather your records. Financial institutions do not keep records forever. In most cases, they destroy records after seven years. You might be a victim, but can anyone prove it?

Second, contact an attorney who has experience prosecuting securities violations. Every attorney took a contracts class in law school. Many transactions involving securities are contracts, but if your attorney recognizes that it is also a security, you may have many more rights.

For example, if you are the victim of a securities violation you may be able to collect up to $15,000 or twenty five percent of your loss from the Indiana Securities Division. You are eligible for the Indiana Securities Restitution Fund if:

1) the securities violation was committed after July 1, 2010;
2) you are a resident of Indiana; and
3) restitution was ordered by a court or an administrative agency (i.e. the SEC or the Indiana Securities Division) – not FINRA.

The securities violation must also have occurred in Indiana, but that could mean a phone call, email, or mailing into or out of Indiana.

In addition, unlike debts from contract breaches, debts stemming from securities violations are not dischargeable in bankruptcy.

You may also want to contact the Securities and Exchange Commission, the Indiana Securities Division, or your local law enforcement agency. They can help, but they do not represent you. You may be the victim of a much larger scheme. Their investigation could take years to resolve and they might not include you in the charges. Your money might be gone by then.

Prior to joining Camden & Meridew, P.C., Matthew Kestian was the attorney for Prosecution Assistance Unit of the Securities Division of the Indiana Secretary of State. In that role, he prosecuted securities fraud and registration violations in state and federal courts across Indiana. Currently, Mr. Kestian focuses his practice on various civil matters including representing victims of securities violations and criminal defense including securities law defense. If you’re looking for an experienced lawyer to represent you, call Matthew at 317-770-0000 or complete our online contact form.

This website supplies general information about the law but it is provided for informational purposes only. This content does not create an attorney-client relationship and more importantly is not meant to constitute legal advice. You should not act on any of the information contained herein without first consulting an attorney.