Steps to Recover from Investment Fraud: Your Action Plan

At Meyer Wilson, we understand the devastating impact investment fraud can have on individuals and families. As financial markets grow increasingly complex, it’s essential for investors like you to be aware of potential scams and fraudulent activities. In this article, we’ll explore various types of investment fraud, warning signs to watch out for, and the steps to recover from investment fraud that you can take to safeguard yourself and your hard-earned money.

Common Types of Investment Fraud

Investment fraud comes in many forms, but some of the most prevalent include:

• Ponzi Schemes: These fraudulent operations pay returns to earlier investors using funds from new investors, rather than from legitimate profits. Ponzi schemes often collapse when new investors become scarce or when a large number of existing investors attempt to cash out.

• Pump and Dump: Fraudsters artificially inflate a stock’s price through false statements, then sell their shares at the inflated price. This practice often targets penny stocks or lesser-known companies with low trading volumes.

• Churning: This occurs when a broker excessively trades to generate commissions, rather than to benefit the client. Churning can significantly erode an investor’s portfolio through unnecessary transaction fees and poor investment choices.

• Unauthorized Trading: When a broker makes trades without the client’s permission. This violates the trust between broker and client and can lead to unexpected losses or tax implications for the investor.

Our team of investment fraud attorneys has extensive experience handling complex cases involving these types of misconduct, including Ponzi schemes, churning, and unauthorized trading. We’ve helped countless investors recover their losses and seek justice against fraudulent actors.

Red Flags: Spotting Investment Fraud

To protect yourself from becoming a victim of investment fraud, be on high alert for these warning signs:

• Promises of high returns with little or no risk

• Pressure to make quick decisions

• Unregistered investment products

• Lack of transparency or unclear explanations

• Unsolicited investment offers

8 Steps to Safeguarding Your Investments

While it is challenging to completely eliminate the risk of investment fraud, and while investors are entitled to rely on the representations and expertise of their investment advisers, there are proactive steps you can take to protect your investments. At Meyer Wilson, we’re committed to helping you guard your hard-earned money:

1. Comprehensive Due Diligence: Before investing, conduct thorough research on both the investment opportunity and the individuals or firms offering it. We can assist you in accessing and interpreting complex financial information.

2. Credential Verification: Always verify the credentials of investment professionals and firms. Our team can guide you through this process, helping you check registrations, licenses, and disciplinary histories with regulatory bodies like FINRA and the SEC.

3. Critical Inquiry: Don’t hesitate to ask detailed questions about the investment opportunity. We will welcome your inquiries and provide clear, comprehensive answers. We can help you formulate the right questions to ask.

4. Maintain Healthy Skepticism: If an offer seems too good to be true, it likely is. Trust your instincts, and don’t hesitate to seek a second opinion from our experienced team.

5. Strategic Diversification: Spread your investments across different asset classes, sectors, and geographic regions to minimize risk.

6. Stay Informed: Keep yourself updated on the latest investment scams and fraud techniques. We regularly share resources to keep our clients informed.

7. Utilize Professional Services: Consider working with a trusted financial advisor or attorney. Our team at Meyer Wilson offers knowledgeable guidance and can review potential investments for red flags.

8. Monitor Your Investments: Regularly review your investment statements and account activity. We can help you understand what to look for and how to identify potential issues early.

Taking Action: Steps to Recover from Investment Fraud

If you suspect you’ve fallen victim to investment fraud, it’s vital to take immediate action. Here’s what we recommend:

1. Document everything related to the investment.

2. Contact the relevant authorities, such as the SEC or FINRA.

3. Reach out to us at Meyer Wilson for professional legal advice.

Remember, you’re not alone in this fight. Our team has a proven track record of helping investors recover significant losses. We’ve successfully recovered over $350 million for more than 1,000 investors nationwide. We will help you understand the steps to recover from investment fraud along the way. Learn more about us from one of our attorneys, Courtney Werning, in this video:

Frequently Asked Questions

1. How common is investment fraud?

Investment fraud is more prevalent than many realize. While exact figures are hard to determine due to underreporting, it affects thousands of investors each year, resulting in billions of dollars in losses.

2. Can I recover my losses if I’ve been a victim of investment fraud?

Yes, it is possible to recover losses from investment fraud. Our team of investment fraud attorneys has helped investors recover more than $350 million in losses.

3. How long does it take to resolve an investment fraud case?

The duration of an investment fraud case can vary greatly depending on its complexity. Some cases may be resolved in a matter of months, while others can take years. It’s best to consult with a legal team for a more accurate estimate based on your specific situation.

4. What should I look for when choosing a lawyer for an investment fraud case?

When selecting a lawyer for an investment fraud case, look for someone with specific experience in securities litigation and a track record of successful recoveries.

5. Are there any upfront costs for pursuing an investment fraud case?

Our firm operates on a contingency fee basis. This means you pay no fees unless we recover money for you. This arrangement makes it easier for victims to seek legal recourse without worrying about upfront costs.