Investment fraud has many different faces, including unsuitable investments.
Financial planners and investment brokers are legally obligated to act
in your best interest based on your circumstances and investment objectives.
When they take big risks with your money that you have not authorized
or are not comfortable with, this can be a form of investment fraud.
Many people who rely on the expertise of an investment broker are those
who require a certain degree of security. These investors are unlikely
to pursue investment prospects that involve a significant risk. However,
while many investment opportunities exist that present average or low
risk, fraudsters tout investments with massive payouts and zero risk,
which is appealing to seniors living on investment income and people with
dependents and significant financial obligations. In any case, if someone
tells you that you can get rich with no risk, they’re probably ripping you off.
Sometimes unsuitable investment schemes and insurance fraud collide, which
can cause even greater long-term financial ill to individuals and their
families. One case in which insurance fraud and unsuitable investments
collide is that of variable universal life insurance. This occurs when
the value of the policy fluctuates over time and insurance agents use
promises of ever-increasing cash value of the policy to trick potential
policy-holders into buying.
It is the duty of insurance agents to be acquainted with their clients’
circumstances and needs, just like investment brokers. In some forms of
insurance, sales agents are actually required to
be licensed brokers. What many don’t know is that, depending on the
kind of insurance you have or are purchasing, you can sue an insurance
agent for abuse if you have been conned into making a risky purchase or
buying into a scam. If you have reason to believe you were a victim of
unsuitable investment insurance fraud, don’t wait another minute
to get in touch with one of our California investment fraud attorneys at
Baldwin Mader Law Group.
Call us today at (310) 220-0988 or
send us your information to receive a free case evaluation.