As more and more Americans are struggling to build a stable financial future through wisely chosen investments, more and more con artists are out there ready to fraudulently part you from your cash. A popular securities fraud tactic is the Ponzi scheme, in which previous investors are paid off with the money coming in from new investors rather than profit from any legitimate investment.
How Can I Avoid a Ponzi Scheme in California?
As a California investment fraud lawyer, I can tell you that it can be difficult to avoid investment scams and Ponzi schemes. What it really boils down to is taking the time to find out who and what you are dealing with. When presented with any investment opportunity, you should:
- Check up on your broker or advisor through your state regulator or services like FINRA’s BrokerCheck.
- Research the investment itself, including its performance over time and how exactly it works.
- Never give in to high-pressure sales tactics or claims that it’s a “once-in-a-lifetime opportunity.”
- Always meet in person, which will give you a better idea of both who your broker is and how their firm handles clients.
For more information about avoiding Ponzi schemes, request your FREE copy of our book Five Signs of Investment Fraud …And What to Do if it’s Happened to You. If you have already lost money in a Ponzi scheme, please contact an experienced Ponzi scheme attorney today for a free consultation.