2011’s Top Investment Scams and Securities Fraud

The North American Securities Administrators Association (NASAA) recently released this year's list of the top investor traps on the current market. Although investment fraud and stock scams are nothing new, a lot of investors are feeling the strain of the poor economy and volatile markets and are looking for new ways to stash their cash and save for the future.

According to NASAA, the popular products con artists used to lure in investors this year were:

• Distressed real estate schemes
• Energy investments
• Gold and precious metal investments
• Promissory notes
• Securitized life settlement contracts

As investment fraud attorneys, we urge you to research each and every product you are interested in -- especially the sometimes risky or illiquid products named above.

Con artists will do their best to hide investment fraud and stock scams from you, and they will draw from a hand of various underhanded tricks, such as:

• Affinity fraud. Sometimes a fraudster will take advantage of your similarities, preying upon those of the same nationality or members of a church congregation.
• Fake credentials or licensing. Some fraudsters rely on you NOT doing your research. They may be unlicensed to sell securities and lie about their background and history. They might even make up a specialty to sound more enticing, such as "Senior Specialist."
• Mirror trading. Fraudsters love to use newer trading platforms as a way to trap unwary investors. If you are new to mirror trading, it is more important than ever to be alert, do your research, and continually monitor your investments.
• Private placements. NASAA warns that, even though these investments might sounds good, they are "highly illiquid, generally lack transparency and have little regulatory oversight."

We all want to make better returns with less risk, but always think twice before jumping in with both feet. A little research can go a long way toward protecting your cash and your future.

If you have already been the victim of securities fraud or a stock scam, contact the skilled investment fraud attorneys with the Law Firm of Meyer Wilson today at 1-866-8-BROKER (1-866-827-6537). If you'd like more information, also request a FREE copy of our book Five Signs of Investment Fraud ...And What to Do if it's Happened to You.