Millions of investment transactions take place every day in the U.S. and investors often use brokers to manage their investments. Brokers—either firms or individuals—make their money from commissions. With the amount of activity and money being invested daily, there is bound to be a high potential for a broker to defraud or otherwise take advantage of investors. What recourse do investors have when their brokers mismanage the investments (often for their financial gain)?
1. Don’t Panic; 2. Recognize that you are a victim; 3. Cut off communications; 4. No social media; 5. Be cautious about taking payments from the fraudster.
Ponzi schemes have become ubiquitous in today’s investing world. At any given time, there are innumerable Ponzi schemes being carried out against unsuspecting investors. Due to headline-grabbing cases such as the Bernie Madoff scandal, many investors are now aware how these schemes operate.
Multiple state and federal agencies in the United States offer consumer protection oversight and investigations for people or companies who are defrauded, cheated, and scammed. Those agencies are a resource for educational information about the latest schemes and frauds as well as options to report claims to investigators.
The information contained in this blog is made available for educational and informational purposes and is not a substitute for legal advice or reading the rules and regulations discussed herein. In any particular case, you should consult with lawyers at the firm with the most experience on the topic, another attorney of your choice, or law enforcement. Depending on your specific situation, answers other than those outlined in this blog may be appropriate. Your use of this blog and website creates no attorney client relationship between you and Kozyak Tropin & Throckmorton LLP.