It seems like everyday there is a new article about another ponzi scheme or some other investor fraud scheme that has now come to light. Many of these schemes are very sophisticated and it is difficult for any investor to know whether they are a victim until it is too late. If you look at the Madoff scandal, these vicitms were some of America’s most sophisticated investors and none of them had any idea there was a problem until it was too late.
Although we review securities fraud cases against all of the major broker-dealers (Morgan Stanley Smith Barney, Wells Fargo, Ameriprise, Banc of America Investment Services, Inc., Goldman Sachs, etc.), these firms can still be the safest place for an investor to invest for no other reason that if you are a victim of securities fraud, at least there is a firm to collect your losses from if you have been victimized. Even these big firms cannot police every financial advisor that they employ, but at least these firms are more likely to be there when things go bad.
Too often investors victimized by a ponzi scheme or other securities fraud scheme are investing with a small broker-dealer or independant financial advisor. When the scheme falls apart, the broker-dealer simply disbands or the financial advisor leaves the securities industry, and it becomes difficult for the investor to collect because there is no one left to sue. Ultimately, though, the best advice we can give is the old “if it sounds too good to be true, it probably is.” If your “advisor” is promising an extremely high return, it may be a scam.
If you have a question about an investment that you believe may be an investment scam, or if you other questions about the investments in your brokerage account, The White Law Group can help. To speak to a securities attorney, please call our Chicago Office at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investors protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit http://www.whitesecuritieslaw.com.