Although doing your research before you invest can go a long way toward protecting you from investment scams, it’s easier than you might think to get lured into financial fraud. The fraudsters who run Ponzi schemes 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.