How can choosing the right financial advisor help minimize the risk of being involved in a Ponzi scheme?

A: Choosing the right financial advisor really can reduce the chances that you’ll be taken in by securities fraud or stock scams. Choosing someone you can trust isn’t always easy, though. Talk to friends and family for a recommendation, and then look for:

  • Core values. Talking with several potential advisors gives you a chance to find someone who respects your tolerance for risk and shares your core values regarding managing money, which can save you a lot of trouble in the long run.
  • Past securities fraud. Taking the time to look into your financial advisor’s background can uncover disciplinary action for investment fraud or misconduct in the past. It also allows you to check for proper licensing and other requirements.
  • Hidden fees and complicated strategies. Some advisors don’t mention additional “hidden fees,” and you might be surprised at how much it could raise your bill. And if the advisor claims to have a special technique or strategy that you don’t understand, you might need to think twice about hiring him or her.

If you suspect you have been the victim of a Ponzi scheme, stock scam, or broker misconduct, contact a qualified and respected FINRA lawyer today. The securities fraud lawyers with Meyer Wilson have recovered losses for hundreds of clients nationwide, and look forward to speaking with you. To learn more about the aftermath of a Ponzi scheme, read Attorney David Meyer’s post on the American Bar Association site.