Texas Trial Attorney For Securities Fraud Allegations

In general terms, securities fraud most often happens when a corporate officer or director makes a statement that misrepresents, distorts or withholds information related to the company’s stock. Securities fraud could also refer to an officer or director unlawfully disclosing information, resulting in an individual or entity acting on the basis of that information. Both the federal government and the Texas state government have laws prohibiting securities fraud.

Types Of Securities Fraud

Securities fraud encompasses several deceptive practices in the financial markets. In Texas, common types include:

• Insider trading: Trading securities based on material, nonpublic information about a company
• Ponzi schemes: Investment fraud where returns for existing investors are generated using funds from new investors
• Accounting fraud: Deliberately falsifying financial statements to mislead investors
• Misrepresentation in financial statements: Providing false or misleading information in company disclosures
• Pump and dump schemes: Artificially inflating stock prices through false statements before selling shares at the inflated price
• Broker misconduct: Including unsuitable investment recommendations, excessive trading or failure to disclose conflicts of interest

If you are a victim of securities fraud, contact attorney Pete T. Patterson at Patterson PC as soon as possible.

To learn more about the high level of service and representation that he provides, please see the case results and client testimonials.

How Do I Know If I’ve Been A Victim Of Securities Fraud?

Recognizing securities fraud can be challenging, but certain warning signs may indicate you’ve been victimized:

• Unexpected losses: Dramatic, unexplained drops in investment value
• Guaranteed returns: Promises of “guaranteed” high returns with little or no risk
• Pressure tactics: Being rushed to make investment decisions
• Documentation issues: Missing account statements or discrepancies in paperwork
• Unauthorized transactions: Trades made without your knowledge or consent
• Complex strategies: Investments you don’t understand after reasonable explanation

If you notice these warning signs, document everything and consult with a securities fraud attorney immediately.

What Is The Statute Of Limitations For Securities Fraud Cases In Texas?

Time restrictions for filing securities fraud claims in Texas require careful attention. Under the Texas Securities Act, investors must typically initiate legal proceedings within three years after discovering the fraudulent activity. However, no claim may be brought more than five years after the transaction occurred, regardless of when the fraud was uncovered.

For claims pursued under federal securities laws, plaintiffs generally have a two-year window from the point of fraud discovery, with an absolute cutoff at five years from the violation date.

Courts may apply the “discovery rule” in certain circumstances, which begins the countdown only when a reasonably diligent investor would have detected the deception. Nevertheless, delaying action is risky – consulting with a qualified securities fraud attorney promptly after suspecting wrongdoing provides the best protection for your legal rights.

What Damages Can I Recover In A Securities Fraud Case?

Victims of securities fraud may be entitled to various forms of compensation:

• Actual damages: Recovery of your direct financial losses
• Rescission: Cancellation of the transaction and return of your investment
• Interest: Statutory interest on your losses
• Attorney’s fees and costs: Recovery of legal expenses in many cases
• Punitive damages: Additional compensation in cases of egregious misconduct
• Treble damages: In some cases, three times the actual damages

The specific damages available depend on whether your case proceeds under state or federal law, the nature of the fraud, and other factors specific to your situation. At Patterson PC, attorney Pete T. Patterson works diligently to maximize your recovery.

Contact Patterson PC Today

Patterson PC is a litigation law firm representing clients in the Houston area and throughout Texas, as well as in other states. To set up a meeting to discuss your goals and concerns, please call at 713-804-9318 or complete the contact form.