As individuals invest their precious income, they depend on the veracity of the securities and commodities markets. Rest assured, that your government is actively investigating criminal activity in the financial markets, that could potentially harm investors. Although securities fraud encompasses a wide range of criminal / illegal activities – they generally include scams such as the following: Hedge Fund Fraud, Foreign Currency Fraud, Pyramid Schemes, and High Yield Investment Fraud.
Some red flags, that all investors should be concerned include; the promise high rates of return with very little or even no risk, investments that involve many forms such as real estate, commodities, securities, and the most obvious… “too good to be true,” investment opportunities. Many investment scams include fee structures that require advanced payments to the deceptive broker or financial representative. Victims of these fee structures are promised large gains with small amounts of monetary payments. Further, victims are required to send funds to cover “processing fees” prior to engaging in the investment opportunity. Unfortunately, the promise of gains never materializes because there is no legitimate underlying investment!
Be vigilant and always consider two basic points before investing money; is the broker or financial representative using high pressure sales tactics? Does the offer sound too good to be true? The majority of the time, the answer to these basic questions can help identify a potential red flag!
If you feel that you may have been a victim of securities fraud, please contact our Investment Fraud and Securities Fraud Law Offices serving the Greater Detroit Area including; Birmingham MI, Troy MI, Pontiac MI, Warren MI, Livonia MI, and Beyond! We offer FREE consultations and are happy to talk to you about your unique case today.