Unsuitable Investments and Insurance Fraud

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 case evaluation.

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