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Researching Investment Companies

As securities fraud attorneys, we believe we can safely say that the Ponzi scheme can be one of the most difficult types of investment fraud to spot. Even experienced investors are sometimes taken in by unscrupulous brokers, advisors, and others who carefully charm and lie to investors to lure them in. In retrospect, many investors can see the warning signs and red flags that they had initially missed, and we believe it's important for any investor to know how to look into an investment opportunity. One important aspect is to look carefully at the company offering it.

What Kinds of Signs Point to a Fraudulent Company?

If you look at our site often, you already know that you should check into your broker's background and carefully review all documentation related to a potential investment before you buy. To protect yourself, take the extra time to look carefully into the investment.

Watch out for the following warning signs of a fishy situation:

  • The address is just a post office box, or the location does not seem to contain a business.
  • The entity has no employees other than your contact.
  • The backgrounds of people in the entity, they don't match the opportunities they offer.
  • The entity does not appear to have any history of actual, successful investment activity.
  • The entity offers investments based on current events, new technology, or recent info.
  • The entity touts a much more successful history than other companies in the same area.
  • You are unable to find information about the entity.
  • You otherwise can't figure out if the entity is actually legit.
  • The contacts you speak with seem to make complicated excuses about why you are unable to find any of the information about the entity that you need.

Despite careful research, many investors are lured into investment scams and Ponzi schemes every year. If you have personally suffered losses due to investment fraud, speak with one of our experienced securities fraud attorneys today in a completely free, no obligation consultation. Our FINRA lawyers have represented hundreds of investors nationwide in stockbroker mediation, arbitration, and litigation in an effort to recover their losses.

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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