Investment Fraud Lawyers in Miami

Investors who were misled into buying a security, a private note, a fund interest or a real estate investment often have more remedies than they realize. Florida's Securities and Investor Protection Act, chapter 517 of the Florida Statutes, gives defrauded investors a right to rescind the purchase or recover damages, reaches the people who personally took part in the sale, and allows the prevailing party to recover attorney's fees. Reiser Law, P.C. represents investors in these claims from our office on Brickell Avenue, and we represent companies, founders and individuals accused of investment fraud. We litigate in Florida state court, the U.S. District Court for the Southern District of Florida, and in arbitration.

What investment fraud looks like

Most cases begin with a gap between what the investor was told and what the investment was. The offering memorandum described a secured loan that was never secured. The promoter promised a fixed return from rental income that did not exist. A fund reported values that its holdings could not support. A friend or adviser recommended an investment without disclosing that he was being paid to sell it. The investment was sold by someone who was not registered to sell securities, or the security itself was never registered or exempt. Each of these can support a claim, and the right claim depends on who said what, who sold the investment, and what paperwork changed hands.

Florida's antifraud statute

Section 517.301 makes it unlawful, in connection with the offer, sale or purchase of any investment or security, or the rendering of investment advice, directly or indirectly:

  • to employ any device, scheme or artifice to defraud;
  • to obtain money or property by means of an untrue statement of a material fact, or an omission of a material fact necessary to make the statements made not misleading; or
  • to engage in any transaction, practice or course of business that operates as a fraud or deceit.

Fla. Stat. § 517.301(1)(a) (2026). The statute applies to exempt securities and securities sold in exempt transactions, so a private placement is not outside its reach. Id.

Who is liable

A person who sells a security in violation of section 517.301 is liable to the purchaser. So is every director, officer, partner or agent of the seller who personally participated or aided in making the sale, and their liability is joint and several. Fla. Stat. § 517.211(2) (2026). That reach matters: when the issuer is insolvent, the individuals who made the pitch, signed the documents or ran the offering may be the realistic source of recovery.

Separate rules apply when the security or the seller was not registered. A sale made in violation of the securities registration requirement, or of the dealer and associated person registration requirements, may be rescinded at the purchaser's election, with the same joint and several liability for directors, officers, partners and agents who personally participated or aided in the sale. Fla. Stat. §§ 517.07, 517.12, 517.211(1) (2026). A person who controls a violator of those registration provisions is also jointly and severally liable unless the control person proves that he or she acted in good faith and did not directly or indirectly induce the violation. § 517.211(3).

What an investor can recover

The remedy depends on whether the investor still owns the investment:

  • Rescission. An investor who still owns the security can recover the consideration paid, plus interest at the legal rate from the date of purchase, less any income received, upon tendering the security back. Fla. Stat. § 517.211(4)(a) (2026).
  • Damages. An investor who has sold the security recovers the difference between the consideration paid plus interest at the legal rate from the date of purchase, and the value of the security when it was disposed of plus any income received. § 517.211(5).
  • Attorney's fees. In any action under section 517.211, including an appeal, the court must award reasonable attorney's fees to the prevailing party unless it finds the award would be unjust. § 517.211(7).

The fee provision runs in both directions. A defendant who prevails can seek fees from the investor, so we evaluate the claim carefully before filing. The statute also preserves common-law and other statutory claims, such as fraud and negligent misrepresentation. § 517.211(8).

One trap for registration claims: a purchaser who receives a written offer from the seller to take back the security and refund the full amount paid with interest, and who does not accept it within 30 days, loses the rescission remedy under subsection (1). § 517.211(1). Do not ignore a rescission offer without advice.

Deadlines

Florida's limitations periods for investment claims are short:

  • Chapter 517 claims. An action founded on a violation of chapter 517 must be brought within 2 years from when the facts giving rise to the claim were discovered or should have been discovered with due diligence, and in no event more than 5 years after the violation. Fla. Stat. § 95.11(5)(f) (2026).
  • Common-law fraud. A fraud action must be brought within 4 years, running from when the facts were or should have been discovered, but no more than 12 years after the fraud was committed. Fla. Stat. §§ 95.11(3)(i), 95.031(2)(a) (2026).
  • Federal securities fraud. A private claim for securities fraud under federal law must be brought within 2 years after discovery of the facts constituting the violation and no more than 5 years after the violation. 28 U.S.C. § 1658(b).

The 5-year outer limits apply even if the fraud was well hidden, so a delay can extinguish a claim that would otherwise be strong.

When a broker or adviser sold the investment

If a brokerage firm or one of its registered representatives recommended or sold the investment, the claim usually belongs in FINRA arbitration rather than court. Our page on FINRA arbitration in Miami explains how those claims work, including claims for older investors.

When the investment was a Ponzi scheme

If the investment collapsed because it was a Ponzi scheme, the recovery picture changes: a court-appointed receiver, a claims process, and claims against banks, auditors and other professionals. See our page on investor fraud and Ponzi scheme recovery. If a receiver has sued you to recover payments you received from a scheme, see Ponzi scheme clawback defense.

How we build an investment fraud case

  1. Reconstruct the sale. We collect the offering documents, subscription agreement, marketing materials, e-mails and texts, and identify each person who took part in the solicitation.
  2. Test the registration status. We check whether the security and the people who sold it were registered or exempt, since registration violations can support rescission without proving fraud.
  3. Trace the money. Bank records and account statements show where the investment went and who benefited.
  4. Identify every defendant with assets or insurance. Directors, officers, agents, control persons and outside professionals may be liable alongside the issuer.
  5. Choose the forum. Arbitration clauses, federal jurisdiction and the location of the defendants all bear on where the case is filed.

What to gather before you call

  • Offering memorandum, subscription agreement and any side letters
  • Account statements, K-1s and tax forms
  • Wire confirmations and cancelled checks
  • E-mails, texts and messaging-app conversations with the promoter or adviser
  • Any letter from a regulator, receiver or the company about the investment's status
  • Notes of what you were told, by whom and when

Questions clients ask

Do I have to prove the seller intended to defraud me?

The answer depends on the claim. Registration violations under chapter 517 can support rescission without proof of fraud. Fraud-based claims require proof of a misstatement or omission and the facts the courts require for the specific claim, which we evaluate case by case.

The company is bankrupt. Who can I recover from?

Florida law makes directors, officers, partners and agents who personally participated or aided in the sale jointly and severally liable with the seller. Outside professionals may also be liable in some cases.

How long do I have to sue?

Often 2 years from when you discovered, or should have discovered, the facts for a chapter 517 claim, and never more than 5 years from the violation. Common-law fraud claims have a 4-year period. Get advice early.

I was offered my money back. Should I take it?

A written offer to rescind can cut off your statutory rescission remedy if you do not accept it within 30 days. Have the offer reviewed before the deadline passes.

Talk to us

Matthew W. Reiser and Isabella Martinez, based in Miami, are members of The Florida Bar and the State Bar of California, so an investment that crossed state lines can stay with one team. Isabella Martinez is fluent in Spanish. To discuss an investment loss, call (305) 726-2003, email matthew@reiserlaw.com or isabella@reiserlaw.com, or use our contact page. Our office is at 1000 Brickell Ave, Suite 1100, Miami, FL 33131. For investments sold in California, see our Bay Area investment fraud page.

Attorney advertising. Prior results do not guarantee a similar outcome.

Contacting us does not create an attorney-client relationship. Please do not send confidential information until we have confirmed there is no conflict and agreed to represent you.