A Note about Crowdfunding and Investment Fraud

Crowdfunding and Investment Fraud

“Crowdfunding” is a trend that seems to be taking the internet by storm, and it has been responsible for funding a number of creative and professional pursuits. However, excited investors may want to approach online crowdfunding investments with caution.

As an increasing number of new crowdfunding opportunities pop up on websites, forums, and social media sites, investors should be aware that these online investment opportunities could be a scam, a cover for stockbroker misconduct, or just simply unsuitable for their financial situation and goals.

Some state and federal regulators have already issued warnings to investors who are interested in crowdfunding, and we agree that investors should be concerned.

Investment crowdfunding is potentially dangerous for investors because:

  • There’s little protection for investors if something goes wrong.
  • Anyone could claim to be legitimate and reach vulnerable investors.
  • These options can be marketed to unsophisticated investors or investors for which it would unsuitable.

For more information about our internet crowdfunding concerns, please see our article, “Attorney Warns of Crowdfunding Fraud from Online Boiler Rooms.”

If you have lost money to an investment crowdfunding scam, reach out to us for help. The experienced investment fraud attorneys with Meyer Wilson represent harmed investors across the country in stockbroker mediation, arbitration, and litigation. All of our cases are handled on a contingency-fee basis, and you can meet with us in a free initial consultation for more answers. Give us a call today for more information, or simply fill out the confidential online form this page to learn more.


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