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 consultation with our lawyers.