if you enter an investment scheme can you latter sue for fraud?

Certainly you can sue - there are very few legal impediments to suing someone. I think you really want to know whether you have a "colorable" claim and the likelihood of success. The answers to those questions must wait for more facts from you.

However, lawsuits are filed every day by investors against their adviser or against an investment operator for failed investments. The legal theory may be breach of contract, negligence or some species of fraud. Fraud can arise for a failure to disclose material facts, for concealing material facts, or for misrepresenting facts to the investor. There are numerous state and federal securities laws which, if violated by the adviser or operator, may be the basis of colorable claims.

There are many considerations when deciding whether to file a lawsuit: how strong is your case (a competent attorney can help evaluate the facts); how much will it cost you to proceed with your claim (attorneys will take cases on an hourly fee arrangement, which is usually very expensive, or on a contingent fee basis, which initially costs the client much less but, if the case is successful, may result in much higher fees paid to the attorney); how long will it take (very long - 12 to 30 months - unless an early settlement is reached); how stressful will it be (very); will the other side file claims against you (very often yes, though perhaps less so in securities fraud cases); how much can you recover (a competent attorney can help you evaluate your losses and what you have the right to ask for as damages); and very importantly, if you get a judgment, will you actually recover some money (which depends upon the availability of defendant's assets or insurance coverage).

DISCLAIMER: The information in, and this communication, is not intended to create an attorney-client relationship between you and me or my law firm. The information in this communication is intended for general informational purposes only and should be used only as a starting point for addressing your legal issues. It is not a substitute for an in-person or telephone consultation with an attorney licensed to practice in your jurisdiction about your specific legal issue, and you should not rely upon the information in this communication. You understand that this communication is not confidential and is not subject to attorney-client privilege.

Fraud is actionable if certain elements of proof are established by the evidence. Using the written documentation you have is a good place to begin. Contact a local lawyer - many may give you a free consultation for an hour - to discuss your specifics. Far too many variables exist in the short post you wrote for any further observation by me.

Good luck to you.

Once you have a local lawyer review the documents and compare what is in them to the statute of limitations, you will know if either civil or even criminal action is possible.

Good luck

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If you can be countered sued, you definitely need counsel, contact us if you want to discuss it:

Dr. Jonathan Levy, Esq.
Member California Bar
chambers@brimstoneandcompany.com