Take Back What’s Yours with a Business & Investment Fraud Attorney

Posted in Business & Investment Fraud on April 15, 2020

Every year, millions of US residents fall victim to investment scams, resulting in billions of lost dollars. The FBI defines investment fraud as “involving the illegal sale or purported sale of financial instruments. The typical investment fraud schemes are characterized by offers of low- or no-risk investments, guaranteed returns, overly-consistent returns, complex strategies, or unregistered securities.”

Investment fraud includes market manipulation, pyramid schemes, and advance fee fraud. Let’s review a few other types of fraudulent investment scams:

  • Non-Traded Real Estate Investment Trusts (REITs): a form of real estate investment designed to decrease or eliminate tax while providing returns on real estate. Because this type of investment does not trade on a securities exchange, it is illiquid and costly over time;
  • Junk Bonds: carry a high risk of default, unsuitable for investors seeking stable investments;
  • Ponzi Schemes: these schemes promise high returns, but utilize money from current investors to pay previous investors;
  • Structured Notes: a hybrid security product, includes a stock or bond plus a derivative and often poses a high risk; and
  • Variable annuities: type of annuity contract, the value can vary based on the performance of an underlying portfolio of mutual funds, usually unsuitable for the elderly investors. 

When individuals initially notice investment losses, they are usually unfamiliar with the often-complicated legal/regulatory issues surrounding securities fraud and negligence. Typically, they only see losses in their financial portfolios and discover the possibility that their retirement, lifestyle maintenance, etc.) may be jeopardized. So how can you avoid investment fraud?

  • Don’t judge an individual or company by their impressive or flashy website;
  • Make sure the investment and company is legitimate – don’t invest unless you have done your homework;
  • Review additional websites regarding this individual/company;
  • Cautiously respond to special investment offers;
  • Interface carefully with individuals/companies who are based in a different country; and
  • Thoroughly research all the terms and conditions.


Seek Experienced Business & Investment Fraud Lawyers

Investment fraud requires immediate action. However, recovering your investment can be a complex and intimidating legal matter. At Stokes O’Brien, we always encourage potential investors to seek experienced financial counsel before investing. Our business and investment fraud lawyers are experts in the pertinent regulatory areas needed to assist you. We will act swiftly and file a complaint with The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).  

Our experienced corporate and securities attorneys will perform a due diligence investigation and research prior to you making the initial investment. We work diligently to protect your financial assets and make sure you do not fall victim to financial or securities fraud.

Don’t wait until you have lost your life savings to an unqualified advisor, con artist or fraudster.

Contact Stokes O’Brien at (619) 648-2654. We are familiar with the financial industry, have overseen numerous securities cases, and have the legal experience to help you recover your investment.