How can I avoid getting wrapped up in a pyramid scheme?
Pyramid and Ponzi schemes
have a lot in common, and the way to avoid them
is to approach any investment opportunity with a grain of salt. Unfortunately,
avoiding pyramid schemes takes a little work on your part. If you’re
not sure how to get started, realize that avoiding investment scams boils
down to one basic thing: don’t believe everything you hear. Here
are some questions you should ask yourself before you hand over your cash:
- Have I received all of the necessary documents and financial information
- Does the information I received in writing match what the promoter told me?
- Did I check up on the broker’s background and the investment itself?
- Have I met face to face with the promoter, and have I visited his or her
physical office location?
- Have I been asked to promote an investment or product to my friends and family?
- Am I being pressured to invest my money before I’m ready?
If your answers to these questions disturb you, take the extra time to
really look into the opportunity before you invest your cash. Consider
calling in a trusted financial advisor, broker, or
securities fraud attorney
to look everything over before you make a decision.
If you need help after you’ve sustained losses in a Ponzi scheme,
pyramid scheme, or other form of investment fraud, speak with an experienced
securities fraud lawyer as soon as possible about your situation. You
can reach us by calling or by filling out our confidential online contact form.