Investment Fraud

If anyone has committed fraudulent acts related to any of your investments, you must contact the company or broker managing your account as soon as possible.  In addition, the following agencies must be contacted for legal action to be made.

1. The U.S. Securities and Exchange Commissions (SEC) Office of Investor Education and Assistance can be contacted to file a complaint related to any investment issues at www.sec.gov/complaint.shtml.  Make sure your complaint contains as much detail as possible.  They also accept mail at the following address: SEC Office of Investor Education and Assistance, 450 Fifth Street, NW, Washington, DC 20549.  Their phone number is 202-942-7040.

2. The state security regulatory agencies will look into your complaints give providers some general information investment fraud.  These agencies can be found with all their contact information at www.nasaa.org/QuickLinks/ContactYourRegulator.cfm.

The National Association of Securities Dealers will help you if you believe that your professional investment manager was involved in the identity theft.  You can file a complaint with them at http://complaint.nasd.com or you can send letter that thoroughly explains the situation to NASD Investor Complaint Center, 1735 K Street, NW, Washington, DC 20006.  Their phone number is 240-386-4357 and the fax is 866-397-3290.

In the mean time, you should act now!  Contact your professional investment manager and explain what concerns you may have.  Talk about what needs to be resolved, and be sure to follow up the conversation by writing a letter which you’ll need to keep a copy of.

If you decide to open a private lawsuit against this individual, you must do it within a certain amount of time because state laws limit the time you have to take action against an investment manager.  In addition, taking your time could look bad on your part in court and even be used against you.

Many professional investment managers will require you to resolve any issues you have with them in the future by agreeing to arbitration.  One of the forms you’ll need to complete during the arbitration process is what’s called a "statement of claim."  It is absolutely essential that you are 100% accurate on this form and thoroughly explain the dispute.  Failure to do so can lead to rejection of your case.

Just so you are aware, when you agree to the arbitration process, you are also agreeing to the outcome of the process.  Usually after the arbitration conference, it will take up to 30 days for the verdict to be reached.