VICTIM OF FINANCIAL FRAUD?

Whether you are investing in a college savings plan, pension fund, retirement account, private company, financial institution or commodities, you may be at risk of suffering from the effects of financial fraud. According to the FBI, common securities and commodities schemes include:

• Investment Fraud: This category of financial misconduct involves the sale or supposed sale of financial instruments. This means any type of tradable asset or contractual right to gain/give money. Typical investments that may be fraudulent often present would-be victims with low to no-risk investment opportunities, guaranteeing that the investor will gain returns that may be overly consistent, have complex strategies in their investment plans or have unregistered securities. Professional and private investors, hedge fund managers, and others who you consult with about your investments could be perpetrating investment fraud. There are several types of investment fraud, such as:

• Ponzi Schemes
• Affinity Fraud
• Pyramid Schemes
• Prime Bank Investment Fraud
• Advance Fee Fraud
• Commodities Fraud
• Market Manipulation
• When the price of shares artificially inflates due to false or deceptive sales practices, investors may become victims of market manipulation. There are various ways fraudsters may cause the price of a company’s shares to rise in a way that does not reflect the company’s genuine value.
• For example, a fraudster may release false information to the public that generates unearned enthusiasm for an investment opportunity. This financial scheme is often referred to as a “pump and dump.” Those committing this type of fraud typically have shares in the company. They artificially inflate the price of their shares, generating interest and attracting investors who believe the stock is rising for legitimate reasons. Then, the fraudsters dump their shares before the price returns to where it should be.
• While those who perpetrate the fraud acquire illicit gains through this misconduct, shareholders suffer financial losses. After the fraudsters dump their shares, the price of shares usually plummets fast, leaving those who bought shares when the stock was rising with investments that are worth much less than expected.
• Broker Embezzlement: If brokers directly steal from their clients by doctoring or forging documents, transferring or trading without authority to do so, or otherwise breaching their fiduciary responsibility, their clients may be the victims of broker embezzlement. Cases of broker embezzlement may sometimes be difficult for victims to detect, as they often involve a broker using assets they obtained legally in a manner that they were not intended to be used. Someone unsure of whether they have been the victim of broker embezzlement fraud should meet with an investment fraud lawyer to learn more about their case.
  
• Late-Day Trading: Financial fraud often involves the sale or purchase of securities after the regular trading market has closed for the day. These after-hour actions can allow traders to illegally benefit from the closing price of stocks as well as gain knowledge about upcoming market changes. As a result, they have an unfair advantage that can allow them to earn more while causing others to potentially suffer losses