Fraud is an issue that many businesses face. The terms “financial fraud” and “securities fraud” refer to the misrepresentation of a company’s value or status to investors.
Persons who have committed fraud may be subject to both criminal charges and civil lawsuits. Civil suits can be filed by defrauded businesses seeking to recoup the losses associated with the fraud. Criminal fraud carries a higher burden of proof and requires criminal intent. Civil fraud applies more broadly.
To pursue a valid fraud case, the plaintiff must be able to prove that the defendant knowingly or recklessly misrepresented facts and that the misrepresentation resulted in tangible losses. It can be difficult to meet all the legal requirements of proof — which is why representation by an experienced attorney is so important.
In general, financial fraud occurs when a person or entity makes a false claim about a business or its stock value. That false claim leads others to make financial decisions that can result in substantial financial loss.
For example, a company may not accurately represent its financial information to shareholders, which encourages investors to invest in a company that is not financially stable. The stock may also be represented by a stockbroker, as often occurs in “pump and dump” schemes. When insider trading, another form of securities fraud, occurs, someone who has access to confidential financial information uses it to decide whether to buy or sell stock before the public is aware of the financial status.
On top of losing money through fraud, businesses are often forced to pay out-of-pocket costs to pursue fraud claims in court, which can be an extremely expensive and time-consuming endeavor. For that reason, LaGarde Law Firm provides representation in securities (and all financial) fraud cases on a contingent fee basis.
We front the costs associated with the lawsuit. We are paid if and when we obtain a favorable result in your case. In addition to our fee, we are reimbursed for court costs and other expenses that we have incurred on your behalf. The contingent fee system allows your claim to rest on its merits, rather than on your willingness to invest your limited resources in the lawsuit.