Investment Fraud Attorney

Securities Fraud FAQs

2007-06-27T18:09:00.000-07:00

What are the duties that my stockbroker owe to me as a client?

Brokers and brokerage firms owe a duty of care and loyalty to all of their clients. Stockbrokers must use the standard of care and diligence needed to protect the customer's best interests. Failure to fulfill that duty may constitute negligence or malpractice by a broker. A source for potential conflict tends to arise given the brokers' typical method of compensation through commission. This may tempt some brokers to churn the account to generate more commissions for them.

A broker also has a duty to follow the instructions of their clients and to execute orders promptly at the best available price. Typically a broker may trade only after receiving authorization from the customer.

Brokers have a duty to disclose all material facts relating to proposed investments and may not make any misrepresentations. Specifically, a broker has a duty to disclose any material risks of any proposed investment. A brokerage firm also has a duty to reasonably supervise their representatives in order to enforce compliance with securities laws.

What happened to my money that was invested in stocks and other securities?

Many times investors do not realize what has happened to their account. Most victims of securities fraud do not realize that they have been defrauded until after the fact. Confusing account statements and patterns of trading which the customer does not understand, coupled with sudden changes in the value of the account, may be a sign of securities fraud.

How do I know if I have been the victim of securities fraud?

Often investors will not know if they have been defrauded until they consult with a professional. An accountant or tax return preparer may see signs of trouble when reviewing the trading in the account. Problem signs for an investor to be aware of include:

-Inconsistency between the broker's statements and the performance of the investments
-Misrepresentations by the broker
-Trading securities that the client cannot understand
-Frequent and excessive trading in the account
-Trading in high risk, speculative or unsuitable investments
-Unauthorized stock trades
-Failure of the broker or company to be responsive to complaints
-Repeated promises by a broker to make up for losses

What can I do if I am a victim of securities fraud?

If you think you may be a victim of securities fraud you should take action to protect your legal rights. First you should stop all trading by the broker in the account until the concern is resolved. You may write a letter of complaint to the broker and the broker's supervisor. It may be advisable to consult with a qualified securities fraud attorney and to have the account documents reviewed by a professional in order to determine whether if you have been a victim of securities fraud.

How are my stock losses calculated?

There are a number of different methods for calculating damages. In general, if you prevail on the merits of your claims, you may receive an award of your out-of-pocket losses. The calculation of damages may be computed based upon just the particular wrongful trades or on the overall performance of the portfolio, and it may also include compensation for what the account should have generated in income or growth absent the broker's wrongdoing.

Do I need a securities fraud attorney?

Investors may present their claims in arbitration without being represented by an attorney. There is no requirement for legal counsel and some arbitration forums offer simplified arbitration procedures for smaller claims. However, the broker and brokerage firm will have their lawyers giving you a disadvantage in presenting complex legal arguments without the benefit of counsel.

It is generally advisable to consult with a qualified securities fraud attorney and to have the benefit of legal counsel in preparing and presenting the claims on your behalf. An experienced securities fraud lawyer may frequently be able to negotiate a settlement.

Investment Fraud -- Most Common Investor Claims

2007-06-15T19:23:00.000-07:00

In recent years, U.S. investors have been plagued by an unprecedented amount of corporate fraud. Irresponsible and illegal actions by Wall Street firms and corporate executives had a catastrophic effect on many individual investors and employees.

Claims by investors against stockbrokers, investment advisors, and financial planners often fall into certain well-recognized categories. Some of the most common investor claims are: Unsuitable Investment Recommendations - This occurs when a broker or other professional investment advisor intentionally makes decisions that are inconsistent with your individual financial needs. A broker has a legal obligation to make recommendations that are consistent with the client's risk tolerance, needs, and investment objectives. Thus, the broker has a duty to learn about each client's personal financial condition and goals, and to recommend investments and trading strategies suitable for that individual. An investment may be unsuitable if:

A client lacks the financial ability to incur the risk associated with a particular investment.
The investment was not in line with the client's financial needs.
The client did not know or understand the risks associated with certain investments.

Misrepresentations and Omissions - These cases often involve a broker's failure to inform you of the risks associated with your investments. Stockbroker "misrepresentation" is simply a legal term for stockbroker "lies". At times, these cases arise from "boiler room"operations, in which teams of unscrupulous brokers make large numbers of cold calls and use high-pressure sales tactics. Under the law, even a prediction or opinion offered by an investment broker can be a fraudulent misrepresentation, when it has no reasonable basis. Common lies include claims by brokers that they know the price that a stock will reach, that their own firm controls the stock price, that they have inside information from the company, that profits are "certain", or that they are selling stock to you from a hot public offering. These statements rarely have a reasonable basis and may represent investment broker fraud.

Similarly, a broker has an obligation to tell the whole truth about a potential investment. In other words, the broker cannot promote the positive features of an investment and withhold the negative aspects or risks. Omission of material facts is a form of unlawful misrepresentation. Many types of false or misleading statements can be the basis for a claim, if an individual reasonably relied upon them in making a losing investment.

Excessive Trading or "Churning" - This occurs when a broker engages in excessive trading in your account, to generate larger commissions. When a broker buys and sells securities in your account to generate commissions that seem excessive, there is a strong possibility that your account is being "churned". However, "churning" also includes any trading done to benefit the broker - rather than the investor. Therefore, even one trade may be churning if it has no legitimate purpose for the investor. To establish that a broker churned your account, you must show excessive trading patterns. This can be done with several kinds of evidence, including:

Calculations to determine the annualized rate of return, which was necessary to cover the commissions charged in your account.
Number of times that the equity in your account was turned over to purchase securities.
Purchase and sale trading activity that occurred in your account.

Unauthorized investments - This usually arises when a broker makes trades without your permission. A broker must have the express detailed permission of the client for all trades. This authority only exists when a client signed a written contract in advance, which specifically granted permission to the brokerage firm to make certain trades without prior approval. Absent this type of arrangement, a firm is required to obtain the client's permission for each transaction. In some cases, the broker simply failed to ask a client for permission to make trades in a nondiscretionary account. In other circumstances, the broker bought stock on margin without authority, or ignored a client's specific instructions about a discretionary account.Depending on the facts of the particular case, unauthorized trading can result in claims for rescission, breach of contract, or fraud.

Over concentration - This happens when a broker does not diversify your portfolio. One of the most important rules of investing is diversification. When a broker concentrates most or all of your funds in an individual investment or type of investment, then your risk of loss dramatically increases. If a broker did this, and the investments declined significantly, the broker may be liable. For example, if your portfolio was heavily weighted to biotechnology stocks and those stocks dropped sharply, you may have a right to compensation, based on the broker's failure to diversify your investments and reduce your risk. Handling a stock fraud claim is a complex process. It will take an attorney considerable time and resources to gather all of the documentation, make a determination, and file the appropriate claim on your behalf. It is an undertaking that requires an attorney who is knowledgeable and skilled in working with the complicated laws and procedures that govern these actions, and in evaluating the documentation required to establish the true value of a claim.

Attorney Marya Sieminski joined the Law Offices of Sam Bernstein in 2003. She is admitted to practice law in Michigan state courts and in the U.S. District Court for the Eastern District of Michigan. She earned her Bachelor of Science degree at the Massachusetts Institute of Technology and graduated magna cum laude from Wayne State University Law School. Marya has worked as a trial lawyer for 10 years and exclusively represented victims in personal injury litigation and in workers compensation claims. She also was appointed by the Governor to serve on the State of Michigan Workers Compensation Qualifications Advisory Committee.

Investment Fraud Law

2007-05-26T17:43:00.000-07:00

The Banks Law Office, P.C. is a premier national law firm and investment fraud law firm, representing investors in NASD arbitration and court litigation to recover money that was wrongfully taken.

Robert S. Banks, Jr. was the 2005-2006 President of the Public Investors Arbitration Bar Association, a national bar association of securities arbitration attorneys. Mr. Banks has received the highest ranking from Martindale Hubbell for more than 15 years. He is listed in the best lawyers in America by Chambers & Partners. He is also included in Oregon Super Lawyers, a distinction reserved for 5% of all attorneys in that state. He has been an advisor to the NASD on securities arbitration. He is a past president of the Federal Bar Association, Oregon Chapter. He has written many articles and taught many seminars for lawyers. His clients have been awarded some of the largest NASD arbitration awards in Oregon. And, his investment fraud cases have broken new ground, establishing investor rights that did not previously exist.

The firm has recovered investment losses for clients totaling many millions of dollars–investment savings that would have been lost forever if it were not for our efforts.

For a free initial evaluation, email a brief summary of your case, including your name, the dates and amounts of loss and a summary of the conduct you believe was improper to info@bankslawoffice.com. We will respond within one business day. Your inquiry does not create an attorney client relationship until we accept your case, but it will be treated as confidential.

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How Older Americans Can Avoid Investment Fraud And Abuse

2007-05-18T20:01:00.001-07:00

Older Americans are the number one targets of investment con artists. Additionally, stockholders and financial planners who engage in abusive practices often seek out the elderly. The files of state securities agencies are filled with tragic examples of senior citizens who have been cheated out of savings, windfall insurance payments, and even the equity in their own homes. Fortunately, such victimization can be avoided by following ten self-defense tips developed for older Americans by the North American
Securities Administrators Association, Inc. (NASAA)
.
1. Do not be a "courtesy victim. Older Americans are of the generation that was taught to be courteous at all times to telephone callers, as well as people who visit them at home. Con artists will not hesitate to exploit the good manners of a potential victim. Remember that a stranger who calls and asks for your money is to be regarded with the utmost caution. You are under absolutely no obligation to stay on the telephone with a stranger who wants your money. In these circumstances, it is not impolite to explain that you are not interested and hang up the telephone.

2. Check out strangers touting "strange" deals. Trusting strangers is a mistake that all to many older Americans make when it comes to their personal finances. Say "no" to any investment professional or con artists who presses you to make an immediate decision, giving you no opportunity to check out the salesperson, firm and the investment opportunity itself. Extensive background information on investment salespeople and firms is available from the Central Registration Depository (CRD) files available from your state securities agency. (For more information, call NASAA toll-free at (888) 84-NASAA. Almost all investment opportunities must be registered for sale in the state in which you live. Your state securities agency can tell you if the investment opportunity is properly registered. Before you part with your hard-earned savings, get written information about the investment opportunity, review it carefully, and make sure that you understand all the risks involved. A favorite tactic of telemarketing con artists is to develop a false bond of friendship with older Americans. Swindlers know that many senior citizens are eager to have someone to talk to on the telephone... even a complete stranger. If you are dealing in person with a stockbroker or financial planner, do not be swayed by offers of unrelated advice and assistance that are merely efforts to develop a sense of friendship and even dependency..

3. Always stay in charge of your money. A stockbroker, financial planner or telemarketing con artist who wants your money will be more than happy to assure you that he or she can handle everything, thereby relieving you of the need to watch over and protect your nest egg. Beware of any financial professional who suggests putting your money into something you don't understand or who urges that you leave everything in his or her hands. Constant vigilance is a necessary part of being an investor. If you understand little about the world of investments, take the time to educate yourself or involve a family member or a professional, such as your banker, before trusting a stranger who wants you to turn over your money and then sit back and wait for results.

4. Never judge a person's integrity by how they sound. All too many older Americans who get wiped out by con artists later explain that the swindler sounded like such a nice man or woman. Successful con artists sound extremely professional and have the ability to make even the flimsiest investment deal sound as safe as putting money in the bank. Some swindlers combine professional-sounding sales pitches with extremely polite manners, knowing that many older Americans are likely to equate good manner with personal integrity. Remember the sound of a voice, particularly on the telephone, has no bearing on the soundness of an investment opportunity.

5. Watch out for salespeople who prey on your fears. Con artists know that many older Americans worry they will either outlive their savings or see all of their financial resources vanish overnight as the result of a catastrophic event, such as a costly hospitalization. Therefore, it is common for swindlers and abusive salespeople to pitch the schemes as a way for older Americans to build up their life savings to the point where such fears are no longer necessary. Remember that fear and greed can cloud your good judgment and leave you in a much worse financial posture.

6. Exercise particular caution if you are an older woman with no experience handling

money. Ask a con artist to describe his ideal victim and you are likely to hear the following two words: "elderly widow. Sadly, many women who are now in their retirement years often received little or no education in their youth about how to handle money. Women of this generation often relied on their husbands to handle most of all major money decisions. Therefore, older women, particularly those who have received windfall insurance payments in the wake of their spouse's death, are prime targets for con artists. Elderly women who are on their own and have little expertise about handling money should always seek the advice of family members or a disinterested professional before deciding what to do with their savings. One excellent resource available nationwide is the Women's Financial Information Program at the American Association of Retired Persons (AARP). For more information, write: "Women's Financial Information Program," AARP Consumer Affairs, 601 E Street, NW. Washington, DC 20049.

7. Monitor your investments and ask tough questions. Too many older Americans not only trust unscrupulous investment professionals and outright con artists to make initial financial decisions for them, but compound their error by falling to keep an eye on the progress of the investment. Insist on regular written and oral reports. Look for signs of excessive or unauthorized trading of your funds. Do not be swayed by assurances that such practices are routine or in your best interests. Do not permit a false sense of friendship or trust keep you from demanding a routine statement of your savings.

8. Look for trouble retrieving your principal or cashing out profits. Many older Americans have little ongoing need for investment funds, while others require returns that are paid out regularly in order to supplement limited incomes. If a stockbroker, financial planner, or other individual with whom you have invested stalls you when you want to pull out your principal or profits, you have uncovered someone who wants to cheat you. Since unscrupulous investment promoters pocket the funds of their victims, they go to great lengths to explain why an investor's savings are not readily accessible. In many cases, they will pressure the investor to "roll over" non-existent "profits" into new and even more alluring investments, thus further delaying the point at which the fraud will be uncovered. If you are not investing in a vehicle with a fixed term, such as a bond, you should be able to receive your funds or profits within a reasonable amount of time.

9. Don't let embarrassment or fear keep your from reporting investment fraud or abuse. Older Americans who fail to report that they have been victimized in financial schemes often hesitate out of embarrassment or the fear that they will be judged incapable of handling their own affairs. Some senior citizens have indicated that they fear that their victimization will be viewed as grounds for forced institutionalization in a nursing home or other facility. Recognize that con artists know about such sensitivities and, in fact, count on these fears preventing or delaying the point at which authorities are notified of a scam. While it is true that most money lost to investment fraud is rarely recovered beyond pennies on the dollar, there are also many cases in which older Americans who recognize early on that they have been misled about an investment are then able to recover some or all of their funds by being a "squeaky wheel. A good resource for older Americans who fear that they have been victimized is the securities agency in the state in which they live. For more information, call NASAA toll-free at (888) 84-NASAA.

10. Beware of "reload" scams. Most older Americans are dealing with a finite amount of money that is unlikely to be replenished in case of fraud and abuse. The result is a panic that is well known to con artists, who have developed schemes to take a "second bite" out of senior citizens who already have been victimized.
Faced with a loss of funds, some senior citizens will go along with another scheme (allowing themselves to, in effect, be reloaded) in which the con artists promise to make good on the original funds that where lost... and possibly even generate new returns beyond those originally promised. Though the desire here to make up lost financial ground is understandable, all too often the result is that unwary senior citizens lose whatever savings they have left in the wake of the initial scam and possibly more in the second scam.

About the Author

Larry Westfall is the owner of DIY Investing - http://www.pennystockebook.com

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Investment Fraud

2007-05-18T19:53:00.000-07:00

Investment Fraud

"Paging licenses, pay-per-call 900 numbers, and other high-tech scams are the latest in a long line of swindles to be pawned off on the American public that seems to be blindly in love with anything and everything labeled high-tech...."

Dee Harris
North American Securities Administrators Association
Project Roadblock Announcement
January 30, 1996

The Scope of the Problem

Most consumers invest in traditional offerings--stocks, bonds, and commodities--that are regulated by the Securities and Exchange Commission (SEC), the Commodities Futures Trading Commission (CFTC), and state securities regulators. However, many consumers also invest large sums in less traditional offerings that either are outside SEC and CFTC jurisdiction or subject to shared jurisdiction with the FTC. Among these are investments in tangibles (for example, rare coins, art, precious metals), oil and gas lottery application services, and telecommunications. In investment cases brought by the FTC in 1996, scam artists consistently took thousands of dollars from consumers. Among complaints in the FTC/NAAG Telemarketing Complaint System, investment fraud represents more than half of all consumer dollar injury reported, with an average loss of over $15,000 and losses as high as hundreds of thousands of dollars per consumer. In just two invention promotion cases challenged by the FTC in 1996, defendants took more than $100 million from thousands of consumers over the life of the frauds, following obviously effective advertising on several national cable stations by the fraud promoters.

Investment fraud, like telemarketing fraud in general, often targets older people, who may be least able to afford the hit to their savings accounts. As the AARP and the Consumer Federation of America recently reported to the SEC, "[b]ecause their prime earning years have passed and the sources of extraordinary income may be one-time life events, older Americans are less able to repair the damage when they are the victims of fraud or abuse."(10)

Fraudulent investment promoters typically use aggressive marketing tools such as infomercials and telemarketing to reach consumers. They also flout state and federal securities registration laws. That way, their promotional materials--including profit projections, use of proceeds, and risk disclosures--are not subject to routine regulatory scrutiny.(11) Consumers may believe that a scheme's slick promotional materials with fine-print risk disclosures fully set forth the investment's profit potential and risks. Instead, the Securities and Exchange Commission warns that "investors must be aware that their first line of defense against telecommunications technology and other securities fraud is their own diligence and skepticism in evaluating a proposed investment--especially one not registered with the [Securities and Exchange] Commission."(12)

In addition, fraudulent promoters fill imitation security offerings with "investment opportunities" that mimic the legitimate investments in the headlines. For example, during the telecommunications boom in the mid-1980s, news stories reported that telecommunications businesses were reaping tremendous wealth. Scam artists created investment schemes that imitated legitimate entrepreneurs, and told consumers that their investment offerings were acquiring Federal Communications Commission (FCC) licenses or capitalizing telecommunications systems, such as cellular phone, wireless cable systems, Specialized Mobile Radio, and Interactive Video Data Service companies.(13) Fraudulent promoters falsely touted these ventures as high-profit, low-risk investments, even though they were high-risk, long-term, and capital-intensive.

By late 1995, fraudulent telemarketers were offering to acquire FCC paging licenses for consumers for hefty prices, claiming to put consumers in control of the airwaves so that paging companies would lease or buy the rights to use airwaves from them. Fraud promoters told consumers they could boost their previous "investments" by acquiring new, purportedly profitable, paging licenses. These scam artists published success stories of real investors in these fields to tout fraudulent offerings. Indeed, many defendants in FTC law enforcement actions simply hyped the information superhighway as the primary reason to invest in such offerings. These high-tech investment frauds alone cost consumers millions of dollars--almost 15 percent of all consumer losses reported in the FTC/NAAG Telemarketing Complaint System by December 31, 1996. In recent years, both the FTC and the SEC have brought many individual enforcement actions involving these high-tech investments.

FTC Actions

Significant achievements in the area of investment fraud reflect the FTC's use of collaborative, innovative law enforcement measures and education messages to help fight aggressive and inventive investment fraud:

Project Roadblock

In January 1996, the FTC coordinated federal and state law enforcement actions against fraud promoters peddling FCC paging licenses and 900-number companies as investments. In "Project Roadblock," the FTC and 21 states filed 85 law enforcement actions against companies touting information superhighway investments that took more than a quarter of a billion dollars from consumers.

The FTC and the FCC also launched a consumer education campaign to raise awareness of fraudulent sales of FCC licenses as investments. Using Project Roadblock data, the two agencies determined that fraud promoters had combed a publicly accessible FCC database, identified fraud victims who had become license holders, and "reloaded" them with fraudulent offers of paging licenses. In response to this marketing technique, the FCC and FTC mailed 17,000 brochures to these same people to help them identify and report their losses and alert them to the danger of being "reloaded" in recovery scams. The FCC also included consumer alerts with each FCC license at issue. Consumers got the message: Once the project was completed, reports of suspected FCC license scams increased 397 percent.

Based in part on Project Roadblock data, the FCC eventually suspended the acceptance of paging applications pending further review of its procedures and adjustments to its licensing processes. Said the FCC: "The freeze is necessary to combat telemarketing schemes involving paging application fraud."(14) By the end of 1996, Project Roadblock's law enforcement, consumer education, and FCC reforms had put the lid on a significant source of investment fraud in the 1990s.

Challenging Fraud on the Internet

Old investment fraud schemes turned up in new disguises in 1996. In September, the FTC charged several defendants in FTC v. Fortuna Alliance, L.L.C. et al. with making fraudulent earnings claims in connection with an unlawful pyramid sales scheme. (A pyramid is the investment fraud equivalent of a chain letter. Scam artists circulate investor funds to create the illusion of profits.) Fortuna Alliance induced consumers to invest in its scheme mostly by direct, person-to-person contact. In a '90s twist, it also used its web site, and clone sites of hundreds of members, to promote the scheme throughout the world. This sophisticated use of the Internet significantly enhanced Fortuna's credibility with potential investors and facilitated communications between Fortuna and its widely scattered team leaders. Fortuna could not have achieved widespread success as quickly without the Internet. When the FTC took action, Fortuna had taken in an estimated $13 million from over 25,000 consumers--about half of them outside the U.S.--in about six months.

Following the Money Off-Shore

The Fortuna Alliance case demonstrates that fraud promoters not only market their investments internationally, but transfer their assets across borders as well. The U.S. District Court for the Western District of Washington froze Fortuna's assets, then found three of the individual defendants to be in contempt of its orders because they failed to repatriate Fortuna funds they had transferred to Antigua. The FTC's effort to enforce the Court's asset freeze was accomplished with help from the Washington State Department of Financial Institutions.

In FTC v. Online Communications, et al., another 1996 case, one of the defendants had transferred profits from the allegedly fraudulent, underlying enterprise to the Bahamas prior to the Court's entry of an order freezing the defendant's assets. The U.S. Department of Justice's Office of Foreign Litigation brought action in the Bahamas and obtained an injunction freezing the defendant's assets in the Bahamas.(15) The defendant agreed to settle the case and repatriate over $300,000 to the U.S. This was the first time the U.S. government obtained an asset freeze issued by a foreign court and returned the frozen funds for distribution to American telemarketing fraud victims.

The history of investment fraud demonstrates that fraud promoters look to the mainstream marketplace for ideas to imitate and for ways to induce consumers to invest. Law enforcement officials and consumers need to follow the headlines to forecast likely fraudulent investment schemes in 1997. Based on recent news stories fraud watchers can expect to see "too good to be true" pitches regarding Internet business investments and partnerships to build out new "information superhighway" communications systems. Fraud busters also will be looking for changing regulations affecting investments, because investment fraud promoters take advantage of changes in securities laws and telecommunications rules to come up with new investment fraud strategies.

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Scottsdale Investment Fraud Attorney

2007-05-14T23:43:00.000-07:00

Scottsdale Investment Fraud Attorney

"We listen. We understand. We perform."

Investment Fraud
Business Fraud
Contract Fraud
Internet scam
Real estate fraud

Land fraud
Securities fraud
Business fraud
Ponzi scheme

At the Law Offices of Kenneth E. Chase, we have successfully represented clients who have been intentionally misled by investment advisors, estate planning and asset protection "experts," financial planners, accountants, or others. Anyone who is in a position of trust -- even family members -- who violates or takes advantage of that trust must be held accountable.

With 29 years of experience, breach of fiduciary duty lawyer Ken Chase has recovered damages for clients who have been tricked or duped by deceitful or intentionally misleading statements.

Experienced Monetary Recovery Lawyer

Recovery may include money damages originally lost through intentional misrepresentation or breach of fiduciary duty, as well as compensatory damages, and, sometimes, attorney fees. If Scottsdale securities fraud lawyer Ken Chase is able to prove "fraudulent intent," punitive damages may be recovered for some intentional misrepresentations. Treble damages also may be collected for federal RICO violations, under certain circumstances.

Contract fraud may occur when a party relies on deceitful or intentionally misleading statements. When your case requires an unsurpassed level of ethical standards and personal service, contact the Scottsdale, Arizona investment fraud attorney at the Law Offices of Kenneth E. Chase.

The Law Offices of Kenneth E. Chase, P.C.
5725 North Scottsdale Road, Suite 190
Scottsdale, Arizona 85250

Phone: 480-423-5800
Fax: 480-994-8129

E-Mail

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Investment Fraud

2007-05-14T23:41:00.000-07:00

Also called ‘brokerage fraud,’ investment fraud technically occurs when an advisor, a brokerage firm, or a stockbroker advises a client against the guidelines set by the Securities and Exchange Commission. Do not fall victim to unscrupulous brokers; learn the tricks used by investment fraudsters and how you can avoid them.

Sadly, most investment fraudsters target older people. Many senior citizens have the characteristics that fraudsters are looking for – sizeable savings accounts and the tendency to trust more easily. If you belong to this demographic, be extra careful. Invest your money directly with banks, and avoid shady Internet deals unless you are adept at online transactions.

Never sign anything without the presence of a lawyer you trust, especially if you are not very familiar with legalese. If you prefer not to hire a lawyer, then do your homework beforehand – reading and understanding contracts, terms of agreements, and policies that come attached with any investment offers could prove to be a wise move. Most fraudulent companies use the fine print of their contracts and agreements to cheat you.

The most common schemes used by investment fraudsters are ‘Prime Bank Instruments.’ They use the names of the world’s most prestigious banks in efforts to make you invest your money. They pretend to pool your money with the money of other investors. At first they may reel you in by giving you good returns, so that you invest more and tell your friends about it. In reality, the ‘returns’ they give you are money from new victims. After one or two cycles, they disappear together with your money.

If you think you have found a company worth investing in, be cautious. Look further into the company’s background and financial situation, at the very least. Leave no stone unturned – do everything you can to make sure that you are dealing with a legitimate company so you will not be robbed of your hard-earned money.

Fraud provides detailed information on Fraud, Fraud Protection, Investment Fraud, Credit Card Fraud and more. Fraud is affiliated with Identity Theft Insurance.

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Attorney Directory

2007-05-14T23:34:00.000-07:00

Investment Fraud Attorney

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How To Avoid Scams And Fraud

2007-05-04T18:10:00.000-07:00

by Kristie Tamsevicius

People who are eager to start a home business are often new to the Internet and filled with hope. Unfortunately, that can make them easy prey for con artists. The lure of easy money can serve as a difficult lesson for those who fall for it. If you are looking at job opportunities online, it's important to watch out for scams and get-rich-quick schemes. Many scams are cleverly packaged, making it hard to determine the legitimate work opportunities from the fraudulent ones.

"If you are looking at employment or business opportunities online, watch out for scams," Tamsevicius says. "Many get-rich-quick schemes are cleverly packaged, making it hard to sift legitimate work opportunities from the swindles." Common cons include Nigerian letter schemes asking for money, pyramid schemes, Ponzi schemes, and "work at home" offers that involve stuffing envelopes or assembling crafts.

Here are some tips for sidestepping scams:

1. If it sounds too good to be true, it probably is! Any offer that promises to make you rich overnight with a business that works while you sleep is a rip-off. Watch out if a company promises large profits for little or no work, or claims no experience is necessary. If anyone can do it, why should you pay to learn about it?

For that reason, multilevel marketing (MLM) has gotten a bad rap. Granted, there may be some legitimate money-making programs out there, but there are also a large number of overhyped, overpromising, underdelivering scams too.

2. Be especially wary of any company that requires an initial investment to get involved.

3. Be leery of anyone who uses hard-sell tactics or pushes you to sign up right away. Take your time to think about opportunities. If you do find a program that intrigues you, do yourself a favor and check it out first.

4. Double-check the reputation of a company before signing up for its program. Get at least three references from people who are currently involved in the program to get the real story. Find out what strings are attached, how much money it will take to get started, and what the "fine print" says. Also find out how long they have been in business. Ask what their experience has been working with them. How long have they been in business? What kind of training will the company provide? Do they have a good support system for their sales representatives?

5. Read the fine print before you sign anything. If you don't understand an agreement, have a lawyer or an accountant review it before signing.

6. Make sure there is an out. Before you sign ANYTHING, find out what the procedure is to withdraw if you change your mind and what, if anything, it will cost you. If you have to pay startup fees, pay with a credit card rather than cash or check. That way if things go awry you can cancel payment or dispute your credit card charges.

How to check out a scam or potential "business" opportunity:

1) Contact your local Better Business Bureau (BBB). The national BBB web site is www.bbb.org/. There you will find a link to locate the BBB for your area and information on work-at-home scams and how to file a complaint.

2) Check the Scambusters

3) Go to WorldWideScam, offers a funny insight into some of the more outrageous scams in circulation.

4) Visit the MLM Survivor Site. Here you can check out any potential MLM opportunities to see how reputable they are.

5) The United States Postal Inspection Service offers several pages on its web site about scams, including work-at-home schemes, multi-level-marketing schemes, distributorship and franchise fraud, and how to file a mail fraud complaint.
www.usps.com/postalinspectors/

6) The Federal Trade Commission offers information on work-at-home schemes, medical billing, business opportunity schemes, the top 10 Dot Cons, and how to file a complaint.

7) The National Consumer League's National Fraud Information Center offers information on pyramid schemes, MLM, and how to report a fraud.

HAVE YOU BEEN VICTIMIZED BY SCAM?

If you fall victim to a scam let others know so that you can protect them from falling prey too! Here's how to report a fraudulent business:

1) Contact the attorney general in your local state.

2) File a complaint with the Better Business Bureau in the fraudulent business' native state. You can find contact information for that individual state at the BBB web site at .

3) Report it to the Federal Trade Commission. Call them at 1-800-876-7060 or visit their web site at www.ftc.gov/ to file a complaint.

4) List them with the Internet Fraud Complaint Center at www. ifccfbi.gov

5) Take action by reporting any spam emailers to www.Spamcop.net and www.abuse.net
About the Author

Kristie Tamsevicius, is the author of "I Love My Life: A Mom's Guide to Working from Home"! Thousands of aspiring entrepreneurs have used her step-by-step home business system to earn money working from home. Get a free ecourse Home Business Success Secrets at http://www.webmomz.com/ilovemylife1.htm

Investment Fraud Attorney

2007-04-21T00:18:00.000-07:00

Scottsdale Investment Fraud Attorney

"We listen. We understand. We perform."

Lies. Fraudulent misrepresentation. Swindle. By any name, deceptive actions still amount to fraud. Contact our Scottsdale business fraud lawyer, Kenneth E. Chase, if you suspect or know that you have been the victim of any of the following types of fraud:

Investment Fraud
Business Fraud
Contract Fraud
Internet scam
Real estate fraud
Land fraud
Securities fraud
Business fraud
Ponzi scheme

At the Law Offices of Kenneth E. Chase, we have successfully represented clients who have been intentionally misled by investment advisors, estate planning and asset protection "experts," financial planners, accountants, or others. Anyone who is in a position of trust -- even family members -- who violates or takes advantage of that trust must be held accountable.
With 29 years of experience, breach of fiduciary duty lawyer Ken Chase has recovered damages for clients who have been tricked or duped by deceitful or intentionally misleading statements.
Experienced Monetary Recovery Lawyer

Recovery may include money damages originally lost through intentional misrepresentation or breach of fiduciary duty, as well as compensatory damages, and, sometimes, attorney fees. If Scottsdale securities fraud lawyer Ken Chase is able to prove "fraudulent intent," punitive damages may be recovered for some intentional misrepresentations. Treble damages also may be collected for federal RICO violations, under certain circumstances.

Contract fraud may occur when a party relies on deceitful or intentionally misleading statements. When your case requires an unsurpassed level of ethical standards and personal service, contact the Scottsdale, Arizona investment fraud attorney at the Law Offices of Kenneth E. Chase.

The Law Offices of Kenneth E. Chase, P.C.5725 North Scottsdale Road, Suite 190Scottsdale, Arizona 85250
Phone: 480-423-5800Fax: 480-994-8129
E-Mail

The Arizona business fraud lawyer of the AZ Law Offices of Kenneth E. Chase, P.C., represents clients with business disputes, professional malpractice issues, contract litigation, and other business and commercial law issues throughout Arizona, including communities such as Gilbert, Chandler, Phoenix, Tempe, Mesa, Fountain Hills, Prescott, Cave Creek, Carefree, Flagstaff, and Kingman, AZ. • Maricopa County • Pima County • Yavapai County • Pinal County • Coconino County • Scottsdale Investment Fraud Attorney

People investing their money with their best interests in mind should receive justice should investment fraud occur

2007-04-21T00:12:00.000-07:00

Investment fraud headlines have appeared as front-page news on a regular basis for some time now. An entire life's savings can be lost because of investment fraud and in pursuing an investment fraud lawsuit it can help ensure more people are not victimized. Do you feel you have been a victim of insurace fraud? Merrill Lynch settlement and stock listing.

At Morgan and Morgan, our attorneys know investment fraud can affect anyone, at any time, no matter what the size of the financial involvement is. Securities laws exist to protect investors from investment fraud and we can help if you are victimized.