What are the most common types of investment fraud?
The main types of investment or securities fraud that we see tend to change over time, but we can draw from a recent NASAA list that explains the top scams of 2011. According to NASAA, the main financial product scams right now are seen in the form of:
- Gold Investment Scams
- Energy Investment Scams (such as oil and gas investments)
- Distressed Real Estate Investment Scams
- Securitized Life Settlement Contracts
- Promissory Notes
Unfortunately, simply avoiding these kinds of products will not keep you safe from investment fraud. Although lists like these make it look very "black and white," in reality, fraudsters may use a blend of products and practices to earn your trust and take your cash.
Additionally, not every energy investment or promissory note is guaranteed to be an act of fraud. What it all comes down to is doing your research before you invest, trusting your "gut instinct," asking questions, and being skeptical of promises of high returns with little risk -- no matter what kind of investment you are looking at.
If you have lost money in a Ponzi scheme, real estate investment scam, or any other kind of investment fraud, contact an experienced investment fraud lawyer with the Meyer Wilson today. We are skilled FINRA lawyers who have helped recover millions of dollars for over 800 clients through stockbroker mediation, arbitration, and litigation.