With any type of investment, there is usually an opportunity for losses. Most New York investors understand this and take careful precautions to minimize potentially significant losses. However, those losses can sometimes be attributed to things outside of the nature of investing. For people who have suffered financial losses because of another person's wrongful actions, securities litigation could help recover some of those damages.
New York man charged with securities fraud
Investors allege that a New York man defrauded them out of significant amounts of money. This is despite his personal claims of investing success in relatively little time, but investigators say that the man admitted some of the alleged fraud to at least two investors when they tried to get their money back. He was recently charged with wire fraud and securities fraud.
What is a Ponzi scheme?
A Ponzi scheme is a faulty investment opportunity proposed by a company or individual. Ponzi scheme investors are assured they will receive a large profit with little to no risk—they do not know that it is a scam.
Remember these securities fraud red flags
Once you become familiar with an activity, it’s easy to start overlooking the simple things as you chase the promise of a big win. You always want to do your due diligence. This is especially true when investing in the securities market, where big sums of money can be at stake.
Avoiding broker misconduct charges starts with this
Both investors and brokers have certain responsibilities when working with one another. However, since it is often presumed that New York brokers have more knowledge and experience when it comes to investing, some investors might blame brokers when things do not go as they wish. Since this could result in a professional being accused of broker misconduct, it is important to understand the responsibilities of both parties.
