Apr. 18, 2016
Striking Back Against Securities Fraud: Considerations in Choosing Your Legal Causes of Action
After Ponzi schemes gained national attention from the exposure of Bernie Madoff’s decades-long conspiracy, securities fraud has become a term that nearly everyone is familiar with today. Providing local flavor, Scott Rothstein’s investment fraud again brought the concern to the door-steps of Floridians. With the Internet providing an ever more critical “tool of the trade,” fraudulent conspiracies such as “pump-and-dump” schemes are a regular danger to Florida investors. While the fraudsters behind these schemes face criminal repercussions, the federal anti-fraud statutes, and often state equivalent “blue-sky laws,” provide independent civil causes of action available to victims. The Florida Securities and Investor Protection Act (“FSIPA”) is particularly noteworthy in our state, and understanding the distinctions between the causes of actions afforded under FSIPA and its federal counterparts is essential for victims as well as attorneys practicing in this area.