Investment Fraud
When you’ve worked hard to save, every dollar represents years of effort, discipline, and trust. Entrusting your savings to a broker, advisor, or investment firm is a decision made with faith that they will act in your best interest. When that trust is shattered by deception, mismanagement, or outright theft, the damage is both financial and deeply personal.
At Varnavides Law, we focus on representing investors who have been harmed by fraud, misconduct, and violations of securities laws. Founded by attorney Gary Varnavides, our firm has the experience, resources, and legal skill to pursue justice and recover your investment losses—whether through FINRA arbitration, state or federal court litigation, or regulatory action.
What Is Investment Fraud?
Investment fraud occurs when someone deceives you to secure your investment, often by misrepresenting facts, omitting crucial information, or engaging in manipulative schemes. In many cases, these acts violate state securities laws, federal laws (like the Securities Exchange Act of 1934), and FINRA regulations.
Investment fraud can happen in many forms:
Ponzi Schemes
A classic form of fraud where returns to early investors are paid using the capital of new investors rather than actual profits. The scheme collapses when there aren’t enough new investors to pay earlier ones.
Affinity Fraud
Targeting specific groups—such as religious congregations, ethnic communities, or professional associations—by exploiting shared trust and relationships to promote fraudulent investments.
Misrepresentation & Omission
Providing false information about an investment or failing to disclose risks, conflicts of interest, or negative financial data.
Unauthorized Trading & Account Churning
- Unauthorized trading occurs when a broker makes trades without your permission.
- Churning happens when excessive transactions are made in your account to generate commissions, regardless of your investment goals.
Insider Trading
Using material, non-public information to make trades, creating an unfair advantage and violating securities laws.
High-Yield Investment Scams & Pump-and-Dump Schemes
- High-yield scams promise unrealistic returns with little or no risk.
- Pump-and-dump fraudsters artificially inflate a stock’s price before selling off their shares, causing the price to crash.
Recognizing the Signs of Investment Fraud
Early detection is critical. You may be a victim if you notice:
- Unexplained losses or missing funds
- Unclear or suspicious account statements
- High-pressure sales tactics
- Promises of guaranteed returns with no risk
- Transactions you didn’t authorize
- Difficulty contacting your stockbroker or investment advisor
- Vague or evasive answers to your questions
If you see these warning signs, contact an attorney immediately. Acting quickly can preserve your ability to recover losses.
Legal Recourse for Victims of Investment Fraud
When fraud occurs, there are several legal avenues to recover your losses:
1. FINRA Arbitration
If your dispute involves a registered broker or brokerage firm, you may be required to resolve the matter through FINRA arbitration. Arbitration is generally faster and less formal than court, but the results are binding.
2. State or Federal Court Litigation
If arbitration is not required—or if fraud involves unregistered individuals, private placements, or other non-brokered investments—litigation may be the best path. This allows for broader discovery and potential jury trials.
3. Regulatory Complaints
Complaints to agencies such as the Securities and Exchange Commission (SEC) or state securities regulators can trigger investigations, sanctions, and restitution orders.
How an Investment Fraud Lawyer Can Help
At Varnavides Law, we do far more than file paperwork. We act as your advocate, strategist, and guide through every step of the process.
We Provide:
- Comprehensive Case Evaluation: Reviewing all investment documents, communications, and account statements.
- Forensic Analysis: Working with accountants and financial experts to trace transactions and calculate damages.
- Strategic Forum Selection: Determining whether securities arbitration, litigation, or regulatory action offers the strongest opportunity for recovery.
- Aggressive Advocacy: Pursuing the maximum compensation available through settlement or trial.
Our Step-by-Step Approach
- Free Consultation
We start by listening. We’ll review your situation, identify red flags, and outline possible legal options. - Evidence Collection & Case Analysis
Gathering contracts, statements, emails, text messages, and any other documentation that supports your claim. - Forensic Investigation
Collaborating with experts to uncover hidden transfers, inflated valuations, or misrepresented returns. - Strategy Development
Choosing the right forum—FINRA arbitration, state court, federal court—and building a tailored litigation plan. - Pursuing Recovery
Negotiating aggressively for a settlement, or litigating with determination if the other side won’t cooperate. - Resolution & Client Support
Once your case is resolved, we ensure the recovery process is smooth and keep you informed every step of the way.
Why Choose Varnavides Law?
- Focused Expertise: We don’t dabble in investment fraud law—it’s a core part of what we do.
- Proven Results: We’ve represented clients in complex securities fraud cases involving millions in disputed investments.
- Personalized Representation: Your case won’t be handed off to junior associates. Gary Varnavides personally handles your matter from start to finish.
- Client-Centered Philosophy: We prioritize transparency, responsiveness, and results.
Take Action Today
The longer you wait, the harder it can be to recover your losses. Evidence can disappear, and legal deadlines can expire.
Contact Varnavides Law today for a free, confidential consultation. Let us help you reclaim your financial security and hold wrongdoers accountable.
Practice Areas
Frequently Asked Questions
What’s the difference between investment fraud and securities fraud?
While they often overlap, securities fraud usually refers to misconduct involving regulated investment products like stocks or bonds. Investment fraud can include a broader range of scams, including unregulated products.
How long do I have to file a claim?
Deadlines vary depending on your state, the type of fraud, and whether your claim goes through arbitration or court. Some are as short as two years—so act quickly.
Can I recover all my losses?
While no lawyer can guarantee results, many victims recover their principal, lost interest, and in some cases, punitive damages.
Is arbitration faster than litigation?
Typically, yes. FINRA arbitration cases often resolve in 12–18 months, while litigation can take longer.
What if my broker is no longer in business?
You may still recover from their former firm, professional insurance, or other liable parties.
Do you take cases on contingency as an investment fraud attorney?
Yes— many of our investment fraud cases are handled on a contingency basis. You pay nothing unless we recover for you.
