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"Depending upon your circumstances and the details of your securities accounts, you may be eligible to bring your claim before an arbitration panel or litigate your case in civil court."
FORT LAUDERDALE, FL, October 11, 2022 /24-7PressRelease/ -- Investment fraud is becoming increasingly common. In the last year, the total number of cases has risen by 80 percent, to 89,518. Many times, the fraudsters are looking to prey on unsuspecting investors.
They use different tactics to entice investors into these schemes, who don't realize what is happening until it is too late. Here are the four most common types of investment fraud.
Fraudsters often offer seminars, posing as financial advisors who can help you with your planning. They talk about the different investments and how you will get larger returns by using their unique approaches, which are touted as risk-free and designed to give you the maximum returns. The problem is that these fraudsters are not licensed, and they don't disclose hidden fees, commissions, and conflicts of interest. Often, these investments are phony opportunities that are not discovered by investors until much later.
Ponzi schemes promise large returns that are paid out to investors with the funds they get from the later investors. The last investors are the ones that end up losing all their money when the scheme folds. The newest investors at the bottom are always paying money to the oldest ones at the top. The focus is on bringing in more investors and never selling any real product or service.
Many fraudsters will entice you to buy an annuity. These are contracts written by a life insurance company that provides income for a certain amount of time. Investors are fooled into buying annuities that are unsuitable or inappropriate for them. These investments are targeted toward seniors and those approaching retirement as a way of generating additional income. These assets can't be readily liquidated, and there are high commissions and fees.
Promissory notes are sold as investments with large returns and low risks. They are touted as short-term debt that is offered by legitimate companies. Many times, investors will be promised returns beyond 15 percent, with a maturity of 9 months, but the companies don't exist and are designed to swindle investors out of their money.
These are the 4 most common types of investment fraud. Always be on the lookout for fraudsters and watch out for those things that sound too good to be true. According to our founder Matt Wolper, "Depending upon your circumstances and the details of your securities accounts, you may be eligible to bring your claim before an arbitration panel or litigate your case in civil court."
About Wolper Law Firm
The Wolper Law Firm are experts in investment fraud. Our team of attorneys knows how to look at different investments and can tell you what is happening. We have a 99% success rate for our clients and can discuss your options during a free no-obligation consultation.
Our founder, Matt Wolper, is a trial lawyer who focuses on the securities industry. He spent 14 years working with big Wall Street firms and knows how to identify and go after fraudsters. We have the knowledge and experience you need to identify investment fraud and help you to decide on the best course of action. Contact us today at (855) 289-7868 and get your free consultation.
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