For Michigan residents who are involved in the stock market or are considering investing, it can be difficult to know whom to trust with their money. This is true whether the person is interested in supplementing their income with light investing in safe entities or is trying to take advantage of the litany of opportunities that present themselves. A common risk for potential investors is picking the wrong broker or falling for a scam. When there is a suspicion that a supposed financial adviser has committed wrongdoing, there are ways to try and recover what was lost.
Man who claimed to be licensed broker arrested by the SEC
A Michigan man was arrested on several charges stemming from him posing as a licensed broker. According to the Securities and Exchange Commission, he oversaw an investment scam that started in January 2018 and continued through July 2019. He took advantage of neophyte investors, accruing more than $2.2 million of their money. The SEC says that the people who invested were lacking the proper knowledge to recognize what was taking place.
The man told them he would trade for them and they would profit with no risk. He gave them fraudulent documentation to show that he was making the trades and the value of their investments had grown by 115%. The SEC says that the man had no affiliation with a brokerage house, nor did he have a license to do any of the securities work he was doing. The investors lost significant sums. In addition, the man is accused of misusing and misappropriating their money. People lost their retirement funds because of this. He now faces several charges related to his activities.
People who were scammed may have legal recourse
It can be stunning when people who believed they were making wise investments with a reputable person or company are suddenly informed that they were tricked and their money is gone. They might think they will have no chance to recover what they have lost. However, there are avenues through securities litigation to try and hold those unscrupulous people accountable. If there was fraud, unsuitable investments, negligence, a breach of fiduciary duty, unauthorized trading or other illegal acts, it is imperative to have a full investigation with assistance from experienced professionals to try and recover what was lost.