Skip to main content

I want the principles of an investment fraud scheme to be prosecuted criminally. The SEC has limited power. How can I do this?

Phoenix, AZ |

I lost $33K with a hedge fund/biotech startup in California that was supposed to go IPO but it was all a fraud. A receiver is attempting to recover some of the $21 million that investors lost. The SEC has prosecuted, but all they did was prohibit them from doing it again in the future, and they say that that is the most they are empowered to do. But the principles had already had a similar judgment some years earlier and did it anyway. I'd like the SOBs to go to jail. I sent a message to the U.S. DOJ, but no response. How can I get a criminal complaint filed on these scumbags? Who can I contact who will respond?

+ Read More

Attorney answers 3


Tough question. The DOJ won't be interested unless there are salacious details and/or tons of money lost. Of course their lawsuits and/or regulatory actions are dictated in some way by the hot topic of the month, the administration, etc. Don't take it personally that they did not respond because they will eventually send you a letter of some sort. You can try to contact you State Attorney General to see if they would be interested in pursuing it. Also your state will have a securities board that you can contact and they may or may not be able to (or willing to) help you get the authorities interested to pursue criminal charges.

Good luck!


Contact the District Attorney of the county the business was located in.
Good Luck.


Fraud is both a civil and criminal concept.

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.

NOTE: This answer is made available by the lawyer for educational purposes only. By using or participating in this site you understand that there is no attorney client privilege between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed professional attorney with whom you have established an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question.