If a deal sounds “too good to be true,” it more than likely
is. Investment scammers are con artists. They charm and manipulate others,
preying particularly on budding investors, often exerting their authority
or power to sway another to make unwise decisions.
Investment fraud occurs in a variety of ways, and the scammers often dig their fingers
into many different areas of investments. This can run the gamut between
stocks, hedge funds, mutual funds, joint ventures, bonds—they are
all fair game to a scammer. As an investor, you can safeguard your finances
and your best interests. We recommend you look for these red flags before
diving into an investment.
High-Return, Small Investment? Too Good to Be True.
The phrase “too good to be true” may be cliché, but
truth be told, it is appropriate in this situation. There are many false
promises behind these types of frauds. They will sell you on the fact
that you will not have to pay much or that there is no risk involved.
They may also claim to have insider information about how to garner a
larger return on your investment.
Check the Salesperson’s Background.
Whenever you enter into any business transaction, partnership, or agreement,
always check that person’s references. All investment representatives
and their firms should hold registrations with their state-mandated regulators,
as well as the Financial Industry Regulatory Authority (FINRA). Typically,
scammers do not register with these organizations, so that they cannot
be detected. Our investment fraud lawyers can help determine who is an
authorized broker and who is not.
Questionable Investment Strategies
A reputable broker or advisor would never lead you to an investment strategy
that is confusing or convoluted. Some of them will even use tactics that
are widely known to be failures, but may try to sweet talk you into believing
that they know the secrets to outsmarting the system. Always check your
references and do not be afraid to ask questions from your salesperson.
Baldwin Mader Law Group helps those who have been defrauded by helping
them take legal action to recover their finances. Our legal team possesses
over 50 years of experience and is dedicated solely to our client’s best interests.
To see how we can help, please schedule your free consultation
with our lawyers.