2015 - INVESTMENT SCAMIn an age of high technology and resources available at the touch of a button or a click of a mouse, investment fraudsters are using any tool or method necessary in order to get your money. You believe that you have invested your money wisely and are on track for retiring with dignity and pride. What if your investments weren’t the best decision and you are an unknowing victim of investment fraud and are completely unaware. Here are some warning signs that your investment might actually be a fraud case. Should you be a victim of fraud reach out to Thomas Law Group at thomaslawgroup.net to seek legal investment fraud advise.

  • They found you, you didn’t find them. If your current investment is a result from a stranger offering you an investment from unsolicited phone calls, email, letters, or personal visits to your home or office. Then the investment may be a fraud.
  • In life there are no guarantees and there are no get rich quick schemes. If your investment offered a guarantee on your investment or even a “low-risk” or “no-risk” investment then become skeptical because with the stock market and with investments in general, having a guarantee or ‘no-risk’ is the equivalent of finding a unicorn. As well as a ‘get rich quick’ scheme or an amazing return on investment in a short amount of time. These promises are simply not true and are actually the most common characteristic of an investment fraud.
  • Designed to confuse.Believe it or not understanding the main points of the stock market are not difficult. If an investment agent is using overly sophisticated wording or terminology that is designed to confuse the average person, then it could be considered a fraud scheme. Investment professionals should encourage people to complete their own homework as well as be able to explain things as a teacher or an educator and not look down on the potential investor.
  • You didn’t receive any paperwork.When signing on the dotted line, you didn’t receive any copies of the paperwork or questions about the paperwork were brushed aside and dismissed as a ‘formality’. Paperwork with any investment that describes the terms and conditions of the investment are required by federal law.
  • Your investment agent is unlicensed or unregistered. In order to buy and sell stock an investment broker needs to be licensed, which means that they had to complete and pass the Series 7 exam or the Series 63 exam. However, the most common form of an unlicensed professional is an independent insurance agent.
  • Trouble cashing out. If you have ever tried to get money out of your investment and hit a brick wall because of delays in releasing the money based on constrictions, then this may be considered a warning sign. Constrictions to an investment that involve the liquidity of an investment should be agreed on, in writing, prior to the start of the investment.
  • Eggs in one basket. Be wary and skeptical of a salesperson that suggests placing your life savings into one type of investment or if they suggest borrowing money or cashing out retirement savings in order to invest.

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