Many people put their life savings into investments, hoping to build some wealth to see them through retirement, put their kids through college or just make life a little easier. When these investments turn out to be fraudulent, it can do tremendous damage.
This is why securities fraud is such a serious crime, and why it is important for victims of securities fraud to seek skilled legal help.
Examples of securities fraud
Broadly speaking, securities fraud involves illegal activities that can include manipulation of financial markets and misleading investors. Specific types of securities fraud can include:
- High yield investment fraud: This is a broad category of schemes that promise high-return, low-risk investment opportunities. If it sounds too good to be true, there’s a good chance it’s not true.
- Ponzi schemes and pyramid schemes: These opportunities fraudulently promise high returns, when in fact they use the money of new investors to pay earlier investors.Advanced fee schemes: These schemes collect money from investors in the form of fees and other costs, when in fact there is no actual investment.
Some other examples include:
- Foreign currency fraud
- Broker embezzlement
- Hedge fund related fraud
- Late day trading
- Investor misrepresentation
Securities fraud can do great damage to victims, including financial losses and more. It is important for victims to know that they are not alone and not to be embarrassed to seek out help and protection when they have been harmed by some type of securities fraud.