Ohio Investment Fraud: What to Watch Out For

According to a 2010 report prepared by the Ohio Department of Commerce, Ohio investment fraud is alive and well. Every year, many Ohioans are bilked out of their hard earned money by those who would abuse their trust. In the current economy, there are so many confusing investment options that scammers are able to run rampant. Scammers use a variety of tactics to gain your trust and run with your cash, but according to cases seen last year, these are the most popular investment scams to watch out for:

• Ponzi scheme: The Ponzi scheme offers a high return on a seemingly legitimate investment; however, in actuality, the scammer is using a percentage of the income from new investors to pay off earlier investors, while pocketing the rest. Be on the lookout for anyone who promises high returns without risk, and who pressures you to reinvest.
• Real Estate Investment Fraud: These schemes are often perpetuated through "free" seminars that offer to teach you how to make a lot of money quickly through real estate investment. However, they are designed to draw you in with a general sales pitch, while asking you to pay more and more money for further seminars.
• Investment Advisor Fraud: Investment advisors rely on your trust. An investment advisor has a fiduciary duty to act in your best interests with full disclosure. In contrast, a scammer may abuse this trust by failing to explain the impact of certain transactions to you, or by hiding information that may impact your decisions. One of the biggest signs of investment advisor fraud is an advisor who pushes you to put all of your money into a particular investment or business opportunity. The advisor then earns a commission or other benefit, and may push you into investing even if it is against your best interests.
• Affinity Fraud: Affinity fraud happens when scammers try to take advantage of your social similarities, maybe working through your church, or gaining trust based on similarities in race or sex. Affinity fraud relies on people trusting those of similar backgrounds and spreading the word to other members of the community. You should be wary of any investment that everyone in your family or church is suddenly talking about, or that is offered by an acquaintance you know through a community.
• Exotic, Non-Traditional Investments: These scams rely on selling an exotic idea or product, such as fine art, wine, or stamps. Because these products generally require special knowledge or expertise, scammers try to prey on uninformed investors by using vague or exaggerated language. Always do your research before investing in something you’re not familiar with.

If you have been the victim of investment fraud, choosing the right Ohio investment fraud attorney can make all the difference in your claim. Our firm has experience representing investors nationwide in investment fraud claims. Request our book, completely free of charge, and give us a call toll-free at (866) 827-6537 to schedule a free consultation.

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Five Signs of Investment Fraud…And What to Do if it's Happened to You is intended to to expose the ugly truth behind investor fraud and its devastating consequences

Learn how to recognize the key signs of investor fraud and what to do if it's happened to you... BEFORE IT'S TOO LATE.  David P. Meyer is a renowned securities and investment fraud attorney. If you entrusted your investments to a financial professional and are worried that fraud or illegal conduct has occurred, you simply CANNOT take any chances, you NEED to get yourself a copy of this report today.

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