In what way can the SEC help the individual investor that asks for reparation of damage?

Most of the problems are presented to the SEC in writing or personally in an interview with the representative of this organism. The best procedure, without any doubts, is a letter; due that in it you can explain the matter with your own words and in a logical and coherent manner. When sending a letter always send along with it a copy of the confirmation notes or documents that you have in your power that are related to the operation in question (always keep the originals in a safe place, you could need them afterwards).

When the SEC receives the letter or after hearing the complaints given in person, the SEC will determine if the federal laws on securities have been violated. To determine this, the SEC listens to all the parties involved. That is, the account executive and the client.

Many disputes between account executives, the stock exchange agencies that employ them and the clients are resolved at this level, as also many of the complaints about mistakes in the operations or for the lack of delivery of the securities or payment of the dividends. If it is duly demonstrated that an agency or account executive does not behave with the honesty and the due legality required, the SEC can separate the agency or the executive, or both, from the stock exchange activity and to pass the matter the attorney general to be processed.

Can the SEC recover the funds of an individual investor that has been a victim of fraud?
The answer is no. This organism is not an executive agency. However, the action of the SEC against an account executive, a stock exchange agency or an anonymous society can serve to the investor that has been a victim to give course to a civil demand.

When the punitive measures of the SEC are directed against renowned agencies, these do the possible to satisfy the claimers to reduce as much as possible the bad advertising that the opinion of this mechanism supposes. The state authorities have a similar role to that of the SEC.  Its efficiency varies from one state to another, as from one administration to another. These authorities usually execute their power to regulate societies with limited responsibilities that constitute themselves as fiscal shelters or for other specific causes, as for example, to accumulate money to finance a Broadway show.

Many state authorities pursue with resolution those organizers of fraudulent activities that are related with the sales of securities when such activities are directed towards the residents of their state. State and legal authorities usually work together with the federal to eliminate the rotten apples of the stock exchange sector.

As the SEC, the state authorities do not have any jurisdiction to represent the individual investors, or either to recuperate the money in their name.