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Consider a Princeton financial executive who invested $1.3 million in what his financial advisor described as a “conservative portfolio with tax advantages,” he trusted his advisor’s expertise and impressive credentials. Within sixteen months, his retirement savings had lost over 40% of its value – not from market conditions but from unsuitable, high-commission alternative investments that generated substantial fees for the advisor while exposing him to undisclosed risks.
This New Jersey professional represents just one of many Garden State investors victimized by securities fraud annually. In situations like this, through specialized FINRA arbitration, Patil Law, P.C. would aim to recover majority of the losses plus interest—seeking to restore the financial security that took decades to build.
If you’ve experienced investment losses due to broker misconduct or investment fraud in New Jersey, call 800-950-6553 today for a confidential, no-obligation consultation.
The New Jersey Bureau of Securities reported a 45% increase in investment fraud complaints since 2021, with Bergen, Essex, and Mercer Counties accounting for nearly 60% of reported cases. This troubling trend coincides with New Jersey’s high concentration of wealth and proximity to Wall Street, creating fertile ground for sophisticated investment schemes.
Investment fraud occurs when financial professionals use deceptive practices to manipulate investors into making decisions that result in substantial losses. In New Jersey there has been an alarming increase in various types of investment fraud targeting the communities:
New Jersey’s demographic profile and economic characteristics create distinct conditions for investment fraudsters. Several factors make New Jersey investors particularly vulnerable:
Our investment fraud lawyers are able to handle cases on behalf of New Jersey investors involving schemes that victimize investors across the state:
New Jersey regulations require investment professionals to recommend only investments that align with their clients’ financial objectives, risk tolerance, time horizon, and investment experience. Unsuitable investment recommendations frequently encountered include:
Case Study: Consider a Hoboken educator nearing retirement that was placed in high-commission, illiquid non-traded REITs despite clearly stated income needs. In cases like this, Patil Law would aim to secure a large recovery through FINRA arbitration based on unsuitable investment recommendations.
Many New Jersey financial advisors owe clients a fiduciary duty to act in their best interests. When advisors place their own financial interests ahead of clients, they commit a breach of fiduciary duty. Common breaches include:
Case Study: Consider a Montclair financial advisor that failed to disclose his firm’s revenue-sharing arrangement when recommending proprietary products to clients. In cases like this, Patil Law would aim to recover majority of the losses through claims based on breach of fiduciary duty and material misrepresentations.
When brokers generate commissions by frequently buying and selling securities without regard for their clients’ best interests, they engage in churning—a serious violation of both New Jersey securities regulations and FINRA rules.
Warning signs of churning include:
Case Study: Consider a Cherry Hill resident who discovered her broker had executed over 180 transactions in a single year, generating $48,000 in commissions while her account lost value. In cases like this, our investment fraud attorneys would aim to secure full recovery of commissions plus market opportunity losses through FINRA arbitration.
New Jersey has seen several significant Ponzi schemes that promised extraordinary returns that were actually paid using new investor funds rather than legitimate profits.
Case Study: Consider a Morristown investment manager targeting local business owners who was exposed as operating a $16 million Ponzi scheme. In situations like this, Patil Law would aim to recover the multi-millions in losses that affected investors through FINRA arbitration and civil litigation against enabling financial institutions.
New Jersey’s prominence in pharmaceutical and biotech industries makes it particularly vulnerable to investment schemes promoting “breakthrough” medical technologies or treatments:
Case Study: Consider a group of New Brunswick investors who lost $2.4 million in a fraudulent biotech startup scheme that misrepresented both its clinical trial results and regulatory approval timeline. In situations like this, Patil Law would aim to recover $1.9 million through combined FINRA arbitration and litigation against the enabling brokerage firm.
New Jersey’s significant senior population makes elder financial abuse a particular concern. Seniors in Bergen, Monmouth, Ocean, and throughout the state are often targeted by unscrupulous financial advisors who take advantage of their life savings.
Common schemes targeting New Jersey seniors include:
Case Study: Consider an 83-year-old retiree from Ocean County who was placed in highly speculative investments inconsistent with his conservative objectives. In situations like this, Patil Law would aim to recover significant losses through FINRA arbitration by demonstrating the advisor exploited his vulnerability following his wife’s death.
The New Jersey Uniform Securities Law (N.J.S.A. 49:3-47 et seq.) provides robust protections for New Jersey investors, including:
As experienced securities attorneys, we leverage these state-specific protections alongside federal laws to maximize recovery potential for our clients.
The New Jersey Bureau of Securities within the Division of Consumer Affairs regulates securities offerings and investment professionals in the state. This agency investigates securities violations and can take enforcement actions against fraudulent investment schemes.
Our investment fraud attorneys work closely with New Jersey regulatory authorities when appropriate to address fraudulent investment activities affecting Garden State residents.
Most investment agreements contain mandatory arbitration clauses that require disputes to be resolved through FINRA rather than New Jersey courts. The FINRA arbitration process typically involves:
As experienced FINRA lawyers, we navigate this complex process on behalf of our clients to maximize their recovery potential.
When you first hired your broker or financial advisor, you trusted them to put your best interests first. Unfortunately, many financial professionals betray this trust through negligence or outright fraud. As experienced FINRA lawyers, we understand how to navigate the complex arbitration process to help recover your investment losses.
The Financial Industry Regulatory Authority (FINRA) provides a specialized forum for resolving disputes between investors and financial professionals. As your FINRA attorney, we will:
Most New Jersey investors don’t realize that they’re required to resolve securities disputes through FINRA arbitration rather than the court system. Having an experienced FINRA arbitration attorney representing your interests is crucial to navigate this specialized process successfully.
As founder and Managing Partner of Patil Law, P.C., Chetan Patil brings unique qualifications to New Jersey investment fraud cases:
Before representing defrauded investors, Mr. Patil served as senior litigation counsel at Cetera Financial Group, one of the nation’s largest brokerage firms managing over $115 billion in assets. This insider perspective gives our New Jersey clients a significant advantage when pursuing FINRA claims against major financial institutions.
Mr. Patil has handled and overseen well over a thousand litigation and arbitration cases in Federal and State Courts and arbitration forums across the country. Chetan has represented defrauded investors, family trusts, family offices, public and private companies of all kinds (including banks and other financial institutions), broker-dealers, registered investment advisors, advisory firms, and securities brokers.
Few attorneys have the depth and breadth of his legal expertise and judgment. This breadth of experience ensures investors benefit from sophisticated representation tailored to their specific needs.
Consider a Princeton family that discovered their wealth manager had misrepresented the risk profile of structured products leading to substantial losses. In situations like this, through aggressive FINRA arbitration that includes expert testimony on suitable alternatives, we would aim to secured a substantial recovery.
Consider a group of Monmouth County retirees that lost $1.5 million in a fraudulent private placement scheme promising exceptional returns from equipment leasing. Patil Law would pursued claims against both the individual advisor and the supervising broker-dealer, aiming to recover the full investment plus interest through combined FINRA arbitration and litigation.
Consider an Edison business owner that sold his company and entrusted the proceeds to a financial advisor who churned the account with excessive trading. In situations like this, Patil Law would aim to secure a significant settlement through FINRA arbitration based on unsuitable investment strategies and excessive trading claims.
New Jersey investors should watch for these warning signs of potential investment fraud:
If you notice these red flags, contact an investment fraud lawyer immediately to protect your rights.
Please reach out to our team so we can privately discuss your situation. We’ll review the facts of your matter and discuss how we can help you. We pride ourselves on always being compassionate and respectful.
Investment fraud isn’t always obvious. Warning signs include unexplained account losses, unauthorized transactions, investments that don’t match your stated objectives, excessive trading, and difficulty accessing your funds. Our investment fraud attorneys offer complimentary portfolio reviews to identify potential misconduct.
Under New Jersey law, most investment fraud claims must be filed within two years of discovery of the fraud or when it should have reasonably been discovered. However, FINRA arbitration rules generally allow claims within six years of the event. These deadlines can be complicated by continuing violations and discovery rules—consult with an investment fraud lawyer immediately to protect your rights.
Patil Law represents investment fraud victims on a contingency fee basis. You pay no upfront fees, and we only collect payment if we successfully recover money for you. Our fee is a percentage of the recovery, aligning our interests with maximizing your compensation.
Three factors distinguish Patil Law’s investment fraud practice:
Generally, market losses alone aren’t recoverable. However, if your New Jersey financial advisor placed you in unsuitable investments given your risk tolerance, failed to diversify properly, or misrepresented the risks involved, you may have valid claims despite market downturns. Our investment fraud attorneys can evaluate whether your losses resulted from actionable misconduct rather than legitimate market risk.
Patil Law, P.C. is able to represent investors across New Jersey, including:
If you’ve suffered investment losses in New Jersey, don’t delay seeking legal advice. FINRA claims are subject to strict time limitations, and waiting too long can permanently bar your right to recovery.
According to FINRA statistics, investors who obtain qualified legal representation recover significantly more than those who represent themselves in securities arbitration. Don’t face the financial industry alone—our investment fraud attorneys have the specialized knowledge and experience to navigate this complex process and maximize your recovery.
Contact Patil Law, P.C. today at 800-950-6553 for a confidential consultation with an experienced investment fraud lawyer. We’ll evaluate your case, explain your legal options, and develop a strategy to help recover your investment losses.