Experienced Investors & Ponzi Schemes
How do experienced investors manage to get fooled by Ponzi schemes and
other investment scams?
Although doing your research before you invest can go a long way toward
protecting you from
, it’s easier than you might think to get lured into financial fraud.
The fraudsters who run
and similar scams are often very good at what they do. In fact, many of
them have been working in the securities industry for years. So, how is
it that experienced investors keep falling for the same old tricks? There
are a few reasons:
It’s just hard to say “no” to the opportunity. Sometimes the promises of
high returns are just too hard to resist—especially for people who are at a financially
vulnerable point in their life.
Many fraudsters target people whom they’ve done business with in
the past. Many fraudsters choose their victims from among their legitimate business
contacts—meaning they already have a relationship that was trustworthy
in the past.
All the documents look legitimate and show gains. Many fraudsters make use of falsified documents or made-up letterhead.
As long as investors receive regular statements that show reasonable activity,
they’re unlikely to look much further.
They heard about it from someone they trust. Sadly, many investment scams and Ponzi schemes move through families or
communities like wildfire once they get going, and it’s easy for
targeted victims to let the research slide when they hear the recommendation
from someone they trust.
If you have lost money in a Ponzi scheme or investment scam, reach out
to the experienced securities fraud lawyers with Meyer Wilson. We’d
be happy to discuss your rights and options in a completely free and confidential
consultation. Attorney David Meyer has also provided information on the
aftermath of a Ponzi scheme in
his post for the American Bar Association. Give us a call today or fill out our
confidential online contact form for more information.
You can also learn more about recovering losses after a Ponzi scheme by
watching Attorney Dave Meyer's video below.