Ally Financial and Securities Fraud Closely Examined

One of America’s largest financial firms is being investigated for securities fraud, alleging that they lost millions of their investors’ money. Ally Financial Inc. is being investigated over allegations of misconduct of selling company stock. This investigation is open to all investors who purchased Ally stock between April 2014 and the present.

Potential plaintiffs may be looking to recover any financial losses due to the alleged deceit, misrepresentations, and general fraud Ally Financial may have committed.

This has come as a shock to many investors, as the company’s fiscal year of 2014 reportedly ended with $151.8 billion in assets, with its stock price being $23.46 between January 2014 and April 2014.

Ally Financial operates a number of business subsidiaries including: car insurance and financing, mortgage, corporate finance, and banking.

Despite its success, this is not the first time Ally Financial has been under fire for securities fraud, with its previous infraction just occurring in 2011. Ally Financial was one of 18 banks that were sued by the Federal Deposit Insurance Corporation (FDIC) and Federal Housing Finance Agency (FHFA), for various securities fraud and marketing fraud charges.

The Ally securities fraud lawsuit stated that Ally and the other banks allegedly sold bad mortgage securities to Freddie Mac and Fannie May, which reportedly contributed to the recent financial crisis.

These defective mortgage securities had consumed a significant portion of the banks’ profits, with Ally Financial ultimately settling the securities fraud lawsuits in 2013. In both cases, the settlements were substantial with FDIC receiving $55.3 million and FFHA $475 million. Now they are facing another major scandal, with potential plaintiffs facing losses of thousands, to maybe even millions of dollars.

However, securities fraud is a complex and difficult situation to understand, so potential plaintiffs may not know if they are eligible or not. Experts advise potential plaintiffs and any other victim of securities fraud to research, and then identify the violations their company allegedly committed.

Overview of Securities Fraud Violations

Securities fraud, also known as stock fraud or investment fraud, is a deceptive practice conducted in the stock market, in which investors are tricked into purchasing stock under false pretenses.

This is typically committed by savvy business representatives or individuals who seek out inexperienced investors who are unable to determine the risk of stock and often cannot afford the financial loss of bad stock.

Securities fraud can also include embezzlement, stock manipulation, issuing false statements on the company’s public financial reports, and lying to corporate auditors. This has become an increasing problem over the years, especially in the case of the financial crisis of 2008, when financial fraud was being committed by numerous businesses across the United States.

According to fraud experts, there are signs of high level investment fraud:

• Promises of high return rates with little or no risk
• Different forms of investments
• Offers that are unsolicited

Legal experts also advise that investors protect themselves by looking for obvious signs of fraud, such as the offer being too good to be true or the seller using high pressure sales tactics. Another sign is when the seller asks for personal information such as a Social Security number, credit card number, and other sensitive information either over the phone or email.

Investors who believe that they have been a victim of securities or investment fraud should file a complaint with the Securities and Exchange Commission, state securities regulators, and law enforcement officials.

Join a Free Ally Class Action Lawsuit Investigation Into Securities Fraud

Securities fraud lawyers are actively looking for investors who purchased Ally stock between April 2014 and the present and suffered financial losses. See if you qualify to join this FREE class action lawsuit investigation by clicking “Join Now” below.

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