Under current law, personal theft losses are not deductible unless established as a Ponzi scheme. Otherwise, you may deduct casualty and theft losses relating to your home, household items, and vehicles on your federal income tax return only if the loss is caused by a federally declared disaster. You may not deduct casualty and theft losses covered by insurance unless you file a timely claim for reimbursement and you reduce the loss by the amount of any reimbursement or expected reimbursement.
See here for more information from the IRS on relief for Ponzi schemes.
See here for more information from the IRS on deductible casualty losses.
Investigate whether any of the loss due to fraud is recoverable through insurance, such as homeowner's insurance.
If you sold the investment at a gain, and the proceeds were later stolen, you would still need to report the capital gain.
If the fraud involved overstating the value of your investment and you sold it at a loss, you could have a deductible capital loss. See this article for more information from TurboTax on capital gains and losses.
See this thread for a discussion of various theft/fraud loss scenarios and possible tax treatment.
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