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Actions You Can Take to Avoid Securities Fraud and Ponzi Schemes

Unfortunately, securities fraud is all too common in today's financial system. That's why it's important to know how to spot it before you become a victim. Here are a few tips from our securities fraud lawyers for protecting yourself and your cash:

  • Get everything in writing and keep a copy for yourself. You should also compare what you get in writing to what you were promised - if something doesn't match up, then proceed with caution.
  • Check out the company or broker’s history through your federal and state regulators. Ask the person promoting the investment if he or she is paid to do so - this will help you determine if there may be any conflicts of interest at play.
  • Ask for a physical address and schedule a face-to-face meeting at the office. This can help ensure that the company or broker is legitimate, as well as giving you an opportunity to build more trust with them before investing your money.
  • Do your own research into the history and performance of the investment itself. It's important to know not only who you're working with, but also what they are offering - being informed is key when making any kind of financial decision.

How to Identify a Ponzi Scheme

Investing can be a risky venture, and it is important to take the necessary steps to ensure that you are not being taken advantage of. Here are some tips to help you spot the red flags of a ponzi scheme: 

  • Make sure the company is properly registered with the SEC and state regulators before investing.
  • Avoid investing with individuals or firms that aren't licensed or registered.
  • Be suspicious of any “guaranteed” investment returns and be aware that higher returns may involve more risk.
  • Be wary of an investment that always appears to generate positive returns regardless of market conditions.
  • Avoid investments if you don't understand them or can't get complete information about them.
  • They may suggest funds are not being invested as promised.
  • Promoters may try to prevent participants from cashing out by offering higher returns for staying put.

If you believe you have been the victim of investor fraud or securities fraud, contact an experienced investment fraud lawyer from Meyer Wilson who can assist you in recovering any losses that may have occurred. With over 50 years of collective experience representing investors nationwide, they have the knowledge and experience to ensure justice is served.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

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