People who have lost money because of securities fraud have several different options that they can consider when they want to try to recoup their money. In most cases, this is a difficult process that will be fairly drawn out; however, this doesn't mean that it is impossible.
One of the possibilities is to use an alternative dispute resolution method, such as arbitration or mediation, to resolve the issue. This is one of the preferred ways for investors, as well as investment firms, because it is often a faster and less expensive option than using litigation and taking the case to court. This option is available for six years after the fraudulent act occurred and the claim must be filed with the Financial Industry Regulatory Authority.
In some cases, the Securities Exchange Commission and FINRA might provide investors wronged by fraud with a way to recoup money through enforcement actions. Typically, this option doesn't require the investors to initiate action and people who are due to receive compensation would be notified by the agency handling the claims.
It is important for you to think carefully about how you are going to try to regain the money you lost. Some scammers might solicit you in an effort to get you to sign on with them under the false guise of getting your money back to you. In almost all cases, these solicitations are going to be scams that mean you won't get your money back.
Recovering losses after an investment fraud is usually desirable. You must make sure that you try to do this in the proper manner so that you don't end up out of way more money than you were after the initial fraud was discovered.
Source: The Motley Fool, "Legitimate Avenues for Recovering Investment Losses," accessed Jan. 05, 2017