An unexpected investment loss can be upsetting, and your initial reaction may be to place the blame entirely on yourself. However, you may want to consider that decisions made by an adviser or broker could be responsible for the loss. Even if you had what you believed to be a strong and trusted relationship, it is possible that a broker may have made unsuitable investments.
Affinity fraud: Insidious, damaging and not uncommon
It’s natural to want to trust someone you share a community with. Maybe it’s another member of a tight-knit professional organization, or someone who goes to the same place of worship that you frequent. You can identify with them – so they can’t be a bad person, right?
How could a broker misrepresent an investment?
Many people agree that investing involves risk. The extent of your vulnerability can vary depending on the situation. But can you always trust your broker to guide you toward a good option?
Woman arrested for securities fraud scheme
Authorities claim that a woman purposely lied to investors about the purposes of her investment fund as well as its performance. Accused of committing securities fraud, she allegedly ran a $100 million scheme that affected many different investors. It can be extremely distressing when a New York investor learns that his or her funds have been purposely misused, but there are options for moving forward and seeking compensation.
