As securities fraud attorneys, we believe we can safely say that the Ponzi
scheme can be one of the most difficult types of investment fraud to spot.
Even experienced investors are sometimes taken in by unscrupulous brokers,
advisors, and others who carefully charm and lie to investors to lure
them in. In retrospect, many investors can see the warning signs and red
flags that they had initially missed, and we believe it's important
for any investor to know how to look into an investment opportunity. One
important aspect is to look carefully at the company offering it.
What Kinds of Signs Point to a Fraudulent Company?
If you look at our site often, you already know that you should check into
your broker's background and carefully review all documentation related
to a potential investment before you buy. To protect yourself, take the
extra time to look carefully into the investment.
Watch out for the following warning signs of a fishy situation:
- The address is just a post office box, or the location does not seem to
contain a business.
- The entity has no employees other than your contact.
- The backgrounds of people in the entity, they don't match the opportunities
- The entity does not appear to have any history of actual, successful investment activity.
- The entity offers investments based on current events, new technology,
or recent info.
- The entity touts a much more successful history than other companies in
the same area.
- You are unable to find information about the entity.
- You otherwise can't figure out if the entity is actually legit.
- The contacts you speak with seem to make complicated excuses about why
you are unable to find any of the information about the entity that you need.
Despite careful research, many investors are lured into investment scams
and Ponzi schemes every year. If you have personally suffered losses due
to investment fraud, speak with one of our experienced securities fraud
attorneys today in a completely free, no obligation consultation. Our
FINRA lawyers have represented hundreds of investors nationwide in stockbroker
mediation, arbitration, and litigation in an effort to recover their losses.