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Securities fraud: It "can happen to anyone"

We do not know yet when the University of Kentucky Wildcats will suit up against the University of Arkansas Razorbacks for a game of basketball, but we can be sure the two SEC rivals will be ready to put on a show.

Former Arkansas football standout was recently in the news regarding significant financial losses that might well include securities fraud, according to media reports. The McFadden losses apparently motivated an Arkansas business publication to print an article on the dangers of financial fraud.

The article cited recent study that says in the 10-year period ending in 2015, about 7 percent of all financial advisers had records of misconduct. One of the professors who carried out the study said that approximately one third of advisers who engage in misconduct are repeat offenders.

According to the professor, "Past offenders are 5 times more likely to engage in misconduct than the average adviser."

To reduce the risk of becoming a victim, investors should check their broker's record on the Financial Industry Regulatory Authority website, closely examine their monthly or quarterly statements and also question their broker about transactions, strategy and goals.

The academic cautioned that investment fraud "can happen to anyone." It apparently happened to McFadden, who has lost approximately $15 million out of the $64 million he has earned so far in his 9-year NFL career.

If securities fraud has happened to you, a conversation with a Lexington securities fraud attorney can help make your legal options clear, and can help start the process of getting your money returned.

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