Alternative Investment Fraud
If you’ve lost money in an alternative investment due to fraud or bad advice, you’re not alone. Many people trust financial advisors or brokers to guide them, only to find out later that something went wrong.
At Varnavides Law, PC, we stand with investors like you. We help investors across the United States recover what they’ve lost through clear, strong legal action. Our approach emphasizes clear guidance and unwavering support to hold accountable those responsible for your financial harm.
If you think you’ve been misled, call our alternative investment fraud lawyer today for a free consultation.
What Are Alternative Investments?
Alternative investments are options outside of traditional stocks, bonds, or cash. They can offer higher returns but come with more risks. These are often sold to people looking for ways to grow their money beyond the usual market.
Common examples include:
- Real Estate Investment Trusts (REITs): These let you invest in property without buying it directly. Some are not traded on public markets, making them harder to sell.
- Hedge Funds: Pools of money managed to beat the market, often using complex investment strategies.
- Private Equity Funds: Investments in companies not listed on stock exchanges, like startups or buyouts.
- Private Debt or Promissory Notes: Loans to businesses or individuals, promising fixed returns.
- Business Development Companies (BDCs): Firms that invest in small or growing businesses.
These investments aren’t as regulated as standard ones, which means less oversight from bodies like the SEC. That’s why fraud can happen more easily.
Experience investment advisors must check if these fit your needs, but sometimes they don’t, leading to unsuitable investments and big losses.
We see this often in our securities fraud cases, where investors were promised safety but faced high risks, or even investment scams, instead.
Common Types of Alternative Investment Fraud
Fraud in alternative investments can take many forms. Scammers or careless advisors might hide risks or make false promises to get your money. Here are some typical issues we handle within the securities industry:
- Misrepresentation or Omissions: Your advisor might not tell you the full truth about risks, fees, or how liquid the investment is. For example, they could say a REIT is “safe” when it’s tied to volatile markets.
- Unsuitable Recommendations: Brokers have a duty to suggest investments that match your age, goals, and risk level. Pushing high-risk alternatives on retirees or conservative investors is a common breach.
- Churning or Unauthorized Trading: Excessive buying and selling to earn commissions, even if it hurts your investment portfolio.
- Ponzi Schemes or Fake Investments: Schemes where new investor money pays old ones, often disguised as legitimate alternatives like private funds.
- Breach of Fiduciary Duty: Advisors must put your interests first. If they promote investments for their own gain, like high commissions, that’s a violation.
- Failure to Supervise: Brokerage firms must oversee their employees. If they ignore red flags, fraud can occur, and they can be held responsible too.
These frauds often target people saving for retirement or big life goals. We’ve helped clients recover from losses in REITs sold as “guaranteed” or hedge funds that collapsed due to hidden fees.
Remember, federal laws like the Securities Exchange Act protect you, and we use them to build strong investment fraud cases.
Signs You May Be a Victim of Alternative Investment Fraud
It’s not always easy to spot fraud right away. Losses might seem like “market dips,” but deeper issues could be at play. Watch for these red flags:
- Unexpected Losses: If your investment drops sharply without clear reasons, it might not be just the economy.
- Pressure to Invest Quickly: Scammers often rush you, saying it’s a “limited opportunity.”
- Lack of Transparency: If you can’t get clear statements or your registered investment advisor avoids questions, that’s a problem.
- High Fees or Commissions: Alternatives can have steep costs that eat into returns—ask why.
- Promises of High Returns with Low Risk: If it sounds too good to be true, it probably is.
- Difficulty Selling or Withdrawing: Illiquid investments are common, but total lockups might signal fraud.
- Unregistered Advisors or Investments: Check with FINRA or the SEC if everything is legitimate.
If any of these sounds familiar, don’t wait. It is time to recover your investment.
Time limits apply to claims, often six years under FINRA rules. We’ve seen people who have suffered investment losses recover by acting early, gathering statements and notes from talks with their broker.
Your Legal Options
If you’ve been hurt by alternative investment fraud, you have rights. At Varnavides Law, we guide you through the process with care. Most cases go to arbitration, like through FINRA, which is faster and less formal than court.
Here’s how we help:
- Free Case Review: We look at your accounts and statements to see if there’s a claim—no cost to you.
- Building Your Case: We investigate thoroughly, compiling broker records and expert analyses to expose fraud and present compelling evidence.
- Securities arbitration or Litigation: We represent you in hearings, fighting for compensation like lost money, interest, and fees.
- Settlement Negotiations: Many cases settle out of hearing, getting you money sooner.
We’ve handled cases nationwide, from unauthorized trades to complex RICO frauds. Our goal is your recovery, whether it’s thousands or millions. Laws like breach of fiduciary duty or securities fraud give us tools to hold brokers and investment firms accountable.
Why Choose Varnavides as Your Alternative Investment Fraud Lawyer
At Varnavides Law, PC, we’re dedicated to victims of financial wrongdoing. Gary Varnavides has deep experience in securities litigation and investment fraud.
What sets us apart:
- Client-Focused Approach: We use simple language and keep you updated every step.
- Proven Results: We’ve won for investors in arbitration and court, recovering losses from unsuitable alternatives.
- Nationwide Reach: Licensed across the U.S., we handle cases wherever you are.
- Personal Attention: You’re not just a number—we listen to your story and tailor our strategy.
- Commitment to Justice: We believe in fighting for what’s right, especially against big firms or scammers.
Don’t face this alone. We’ve helped victims of investment fraud just like you get back on track.
Call or email us for a free consultation with our experienced investment fraud attorney — we’re ready to assess your rights.
Contact Securities Fraud Attorney Varnavides Today
If you believe you’ve been a victim of alternative investment fraud, reach out now. At Varnavides Law, PC, we’re on your side, ready to pursue your fraud claim and fight for your investment loss recovery.
Call us or email us for a free consultation.
Let’s discuss how we can help you get justice and move forward. Your story matters to us.
Frequently Asked Questions (FAQs)
What is alternative investment fraud?
Alternative investment fraud happens when brokers or advisors mislead you about non-traditional investments, like REITs or private funds, leading to losses. It includes hiding risks or making false claims.
How do I know if my investment was unsuitable?
If it didn’t match your risk tolerance, goals, or finances, it might be unsuitable. For example, high-risk alternatives for low-risk savers often qualify.
Can I recover my losses?
Depending on the facts, investors may pursue compensation through arbitration or litigation by proving misconduct, such as fraud or negligence.
What does free consultation involve?
We’ll review your situation, explain options, and see if you have a securities law case—all confidential and no obligation.
Do I need to go to court?
Many cases resolve through FINRA arbitration, a streamlined process involving claim filing, evidence presentation, and hearings. We guide you through each step with expertise.
