INVESTMENT FRAUD

Section 551.41, Wis. Stats., provides that "It is unlawful for any person in conection with the offer, sale or purchase of any security in this state, directly or indirectly: (1) To employ any device, scheme or articfice to defraud; (2) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading; or (3) To engage in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person." Persons cheated by stock brokers can sue under this section of the state law to recover monies lost plus interest and attorney's fees. Such persons also may be able to sue under common law theories of intentional and fraudulent misrepresentations and for punitive damages. It is common for brokerage companies to have their customers sign contracts that contain arbitration clauses. Often the clause will prevent the customer from suing in court. Instead the customer is forced to have his or her claim decided by arbiters. That process is generally less favorable to customers. If you are the victim of broker fraud you should consult with an attorney and ask whether or not your claim is governed by arbitration.