Securities Fraud

Investment fraud is a deceptive practice in the stock or commodities markets that induces investors to purchase or sell investments due to false information. Investment and securities fraud arise out of allegations that losses are because of misconduct unrelated to the market and usually due to intentional acts or negligence of their advisor.

Oftentimes, perpetrators of investment fraud are flat out not telling the truth or skewing the truth when they advertise their purported investments. Investments are made to look as “once in a lifetime,” “guaranteed winners,” “risk-free,” and “only available for a limited time.” Additionally, perpetrators of investment fraud might advertise the investment as exclusive only to certain investors. Unfortunately, these perpetrators of investment fraud simply are looking after their own interests and can cause significant losses for ordinary investors.

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Investment fraud occurs in a variety of situations and contexts. Our attorneys are experienced in handling cases concerning many of the situations listed below. Some common types of investment fraud are:

High-return or risk-free investments;
Pyramid schemes;
Ponzi schemes;
Promissory notes;
Pump and dump schemes;
Microcap or penny stock fraud;
Pre-IPO investment scams; and
Elder financial fraud.

Some of these types of fraud are complex and difficult to detect until the losses have already occurred. This is why it is important to be vigilant concerning proposed investments and the individual pitching them.

How to Protect Yourself From Investment Fraud

Always ask questions and research the proposed investment, as fraudsters are expecting little pushback and usually prey on individuals who are not likely to follow up on their claims. This includes researching the background of the individual attempting to sell you an investment. Be wary of unsolicited offers.

Further, there are typical red flags the potential investor should follow up on. These include deals that sounds too good to be true, promises of guaranteed results, claims that everyone is buying in, and pressure to send money immediately.