Many Michigan residents use a financial advisor to provide them with help and guidance on financial investments. If you use a financial advisor, you trust them to properly manage your money and always have your best financial interests at heart.
Unfortunately, sometimes your financial advisor may engage in illegal activity or scams that can cause you major financial harm. This is known as securities fraud, and there are many different types of securities fraud that you should know about.
Pyramid or other types of schemes
Most everyone has heard of pyramid schemes. These are schemes specifically intended to deceive investors.
You may be enticed to invest in a new opportunity and told that your money will be going to a legitimate business when it is simply going to pay other people who have invested their own money before you.
They believe they are receiving money from their investments, not money from others who are being duped the same way they are. This is a pyramid scheme.
High yield investment frauds
You may receive unsolicited communications from people pretending they want to help you but are actually out to defraud you.
These people can contact you in any way – through phone, email or even in person. They usually start out by offering you an investment opportunity that sounds too good to be true.
The opportunity usually involves you being asked to invest a small amount of money with little to no risk, with a guarantee that you will get a high return on your investment. The people usually cannot provide any details to backup these claims.
Do your research or seek legal representation
If you are contacted by someone offering you a financial opportunity that sounds like this, it is best to do your research and determine if the person or company is legitimate.
Today’s securities fraud schemes can be extremely sophisticated, and even the savviest investors can fall victim to securities fraud. Securities litigation is a complex area of law, and an experienced attorney can help you recoup any losses.