1. What is Securities Law?
Securities Law involves the rules and regulations that regulate the issuance and the sales of securities. The Securities Act of 1933 and the Securities Exchange Act of 1934 are major aspects of this type of law. Securities Fraud occurs when an individual or entity attempt to illegally manipulate the investment market. Securities fraud may be committed by brokers, financial advisors, corporations, and private investors.

2. What is insider trading?
If a person buys or sells stock in a publicly traded company based on non-public information that they have about that company, it is considered "insider trading" and is illegal.

3. How does a securities broker get paid?
The broker will earn his income based on a commission.

4. What are the duties of a broker?
Brokers provide financial background of a company, the rate of commission, and other important facts that a client should know before they buy or sell stock.

5. How do I know if I have been defrauded?
Suspicious activity on the part of a broker may include:

• Several account statements showing transactions that you did not make
• Unidentifiable debits or credits on monthly statements
• Losing money when the market is up
• Loss of money in the majority of investments recommended by your broker

If you believe you have been defrauded, contact Epperly & Follis, P.C. today.

6. What can I do if I think I have been defrauded?
The National Association of Securities Dealers (NASD) and various state securities divisions offer a formal complaint process to investors, with the filing of a complaint triggering an investigation of the broker. If the investigation proves that the broker has engaged in any unlawful practice, the broker will be subject to formal disciplinary action.

Disputes between investors and their brokers are generally subject to the arbitration process because most brokerage firms use an arbitration agreement when you sign up for their services. Don't let this prevent you from contacting an attorney or thinking you can't file a lawsuit, because this is not always the case.

7. How much can I expect to recover if I go to arbitration?
Investors may be awarded out-of-pocket losses, reasonable attorney fees, interest on the losses, and punitive damages. The exact amount that you recover varies in each case.

8. How much will it cost to hire an attorney?
Most attorneys are hired on a contingency-fee basis, which means that the attorney recovers fees only if you recover a judgment in the case. The fees that they recover are usually a percentage of your award.

9. What is corporate fraud?
When a corporation deliberately conceals information to appear healthy and successful before its shareholders, it has committed corporate or shareholder fraud. Corporate fraud may involve a few individuals or many, depending on the extent to which employees are informed of their company's financial practices. Fraud committed by corporations can be devastating, not only for outside investors who have made share purchases based on false information, but for employees who, through 401ks, have invested their retirement savings in company stock.

10. What is investment fraud?
Investment brokers may commit fraud in an effort to control the market or lure more business in. The following activities are considered investment fraud when done intentionally:

• giving biased investment advice
• giving unfounded advice
• offering separate clients contradicting advice
• advising clients to continue an imprudent risk
• advising out of a conflict of interest