Common Investment Scams

In addition to Ponzi schemes and other financial fraud, here are some other common investment scams* people fall victim to:

•  Private securities offerings: Although sometimes legitimate, these offerings do not receive
    the regulatory scrutiny or have the quality and quantity of disclosure of registered investments and
    are too often associated with fraud.
•  Prime bank schemes: Promising tax-free, high-yield returns, fraudsters offer to let an
    individual investor into these supposed financial instruments from top overseas banks, otherwise
    offered only to the world's wealthiest investors. But prime banks do not exist, and the only profits
    from the scheme are the promoters.
•  Inside information: Someone claims to have inside or non-public information about a company
    or product that will soon send the stock price soaring. This information is almost always false and
    designed to get people to invest when they otherwise wouldn't. In any event, trading on "inside
    information" can be a violation of the law.
•  Investment seminars: Investors frequently get invited to free seminars that promise to educate
    them about investing strategies or managing money in retirement - often with an expensive meal
    provided at no cost. But just because someone buys you breakfast, lunch or dinner doesn't mean you
    have to buy what they are saying - or selling.
•  Promissory notes: While some promissory notes can be honest investments, those marketed broadly
    to individual investors are often scams. A promissory note is a form of debt that companies sometimes
    use, like loans, to raise money. But bona fide notes are marketed almost exclusively to corporate
    and other sophisticated investors.
•  Oil and gas: Popular in the mid-1980's, oil and gas scams tend to resurge as energy prices fluctuate.
    While some energy investments are legitimate, others are not. Oil and gas stock scams typically involve
    the touting of a small unknown company.
•  Microcap stocks: Information about these low-priced stocks issued by the smallest companies is
    often difficult to find. When good information is scarce, fraudsters can easily spread false
    information, profiting while creating losses for unwary investors.
•  "Risk-free" or "guaranteed" investments in exotic-sounding instruments: There is no
    "risk-free" investment. Offers of "guaranteed" investments are a red flag.

If you have lost significant investments due to any of the above scams, don't wait. Contact an experienced Sarasota trial lawyer to discuss your options for financial recovery today. Call 941-827-2228 to discuss your case today. *From information provided by