The Lure of “Phantom Riches”

Who doesn’t want to build wealth? It is this desire that attracts people to investments that promise high returns. However, scam artists also use this wealth building desire to persuade individuals to invest their money. Scammers will dangle the possibility of wealth in front of investors, which is a tactic known as “phantom riches.” According to the Financial Industry Regulatory Authority (FINRA), an investment scam will often take the form of a “big payoff” or “guaranteed returns.” This phantom riches tactic is one of the most common used by fraudsters.

This tactic can be described as follows:

  • The scam artist promises riches so you make a decision based on emotion rather than logic.
  • You invest your money, but get nothing in return. The scam artist can’t pay you, because the “riches” never really existed in the first place.

Avoid Investment Fraud

You can protect yourself from this common persuasion tactic. First, ask a lot of questions. Make sure you fully understand the information provided to you. Often, scam artists will make the investment appear complicated or obscure. Once you have your answers, verify them. Before you make any investment, you should also look into the background of the investment representative. You can use FINRA’s BrokerCheck and should also contact your state securities regulator.

The Meyer Wilson Way

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  • More than $350,000,000 Recovered
  • Voted Best Lawyers in America® for over Ten Years Running
  • David Meyer is the Immediate Past-President of Public Investors Advocate Bar Association (PIABA)
  • Over a Thousand Investor Claim Cases Since 1999
  • Exclusive Focus on Investor Claims & Class/Mass Action Lawsuits
  • Deep Bench of Skilled Attorneys and Staff Members

We Recover Investment Losses

Helping You Take Back What Is Yours
  • Jury Verdict Won Against Prudential Securities $262 Million
  • Recovered for 100-Year Old Widow $30 Million
  • Recovered in Retirement Losses $10 Million
  • Recovered for a Large Group of Individual Investors $6.5 Million
  • Recovered for Elderly Victim in Ponzi Scheme Case $3.8 Million
  • Recovered for Elderly Ponzi Scheme Victim $3.2 Million
  • Recovered for More Than 50 Families of Ponzi Scheme in California $3.2 Million
  • Recovered for 35 Families in Northeast Ohio $3.1 Million
  • Losses Recovered for 20 Retirees $3 Million
  • Recovered for Retired Physician Against Major Wall Street Firm Prior to Filing FINRA Arbitration $2.5 Million

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