Reporting to the SEC, FINRA, or a state regulator helps them act, but it doesn't recover your money. A claim to recover money is filed by you or your attorney in court or in arbitration. PreIPOScam.com does not file claims; we can connect you with an independent securities attorney for a free review.
Investor claim guide: 5 steps
Gather offering documents, agreements, payment records, and communications.
Collect the PPM, subscription and operating agreements, wire receipts, account statements, K-1s, and every email, text, and voicemail. Write a dated timeline of what you were told and by whom.
Identify the broker, investment sponsor, SPV, or selling entity.
Find the legal names of the fund and its manager, the salesperson, and any brokerage firm. Check them on BrokerCheck, IAPD, and EDGAR. Whether a FINRA member firm was involved determines whether FINRA arbitration is available.
Report suspected securities fraud to the appropriate regulator.
Submit a tip to the SEC, file with your state securities regulator, and file with FINRA if a brokerage firm was involved.
Evaluate potential legal remedies, including arbitration or litigation where applicable.
Depending on the facts: FINRA arbitration, private arbitration under your subscription agreement, a lawsuit, a rescission claim, or a claim in a receivership or bankruptcy. See recovery options.
Consult a qualified securities attorney about eligibility, deadlines, and recovery options.
Deadlines can be as short as one year. Many investor-side securities attorneys offer free consultations and work on contingency. See how to choose an investment fraud attorney.
Can I sue over a pre-IPO investment?
Often, yes. A pre-IPO investment lawsuit or arbitration can be based on misrepresentation, omission of material facts such as hidden markups, sale of unregistered securities, or sale by an unregistered broker, under federal law, state securities laws, and common law. Whether it's practical depends on who is liable, whether they have assets or insurance, any arbitration clause, and the deadlines that apply.
Where a pre-IPO fraud claim is filed
| If… | Your claim usually goes to |
|---|---|
| A FINRA member firm or registered rep was involved | FINRA arbitration |
| Your subscription agreement has an arbitration clause | The named forum (often AAA or JAMS) |
| Neither applies | State or federal court |
| The fund or platform is in receivership or bankruptcy | That proceeding's claims process, by its deadline |
The SEC specifically warns investors about fraudulent pre-IPO offerings; read its pre-IPO investor alert.