FBI Special Agent David Nanz recently offered some observations and advice about scams and frauds, based upon his time in the Miami field office.
“If it seems too good to be true, it probably is”, words we have all heard but all too often fail to heed.
According to Nanz, the most commonly seen schemes are:
- Ponzi and Pyramid schemes promising high rates of return with little or no risk. There is no legitimate underlying investment. The fraudster uses money from new investors to pay “profits” to later investors.
- Market Manipulation-Pump and Dumps as they are often called use deceptive practices to manipulate the price of a targeted security, usually an unknown penny stock, which is sold off by the fraudster after he has convinced others to run up the stock price. Beware of the broker who ‘cold calls’.
- Commodities Fraud-with gold at a recent high, it is no surprise we have seen so many frauds uncovered where business purport to be in the commodity business when they actually soliciting funds for a transaction that never occurs.
Rex Securities Law , located in Boca Raton, FL, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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