The Securities and Exchange Commission reached a settlement in the case of two South Florida men accused of securities and real estate fraud. The defendant in Fort Lauderdale federal court will pay millions of dollars in fines and restitution after diverting more than...
Investment Fraud
Promissory note fraud: What can you look out for?
As you are likely aware of, a promissory note is essentially an “IOU” that a company gives you in return for your monetary investment. The company has X number of years to repay the loan, plus interest. Promissory notes can be viable investment strategies, until they...
What is selling away as it relates to securities?
If you know that your broker’s investment firm backs the advice and investment decisions of your broker, you naturally feel more confident about the actions of your broker. But in some situations, investors find out that their brokers are acting independently of their...
New fraud charges emerge against former Florida tax collector
Investment fraud in Florida comes in many forms and perpetrated by almost anyone. However, when the accused individual is a public servant, the results of the offense can affect both governmental bodies and singular investors who unknowingly misplaced their trust in...
Meme stocks and market manipulation
Investors have become aware of meme stocks surging to record-breaking levels. Social media conversations and many headlines described fast gains exceeding 1,000%. The information provided caused some trending speculative stocks to appear exceptionally attractive....
What is a Ponzi scheme?
If you decide to invest in something that promises extremely high returns with little to no risk, the investment may be a Ponzi scheme. These schemes get you to invest money, but the fraudsters do not put it towards another investment. Typically, the fraudsters take a...
Your vigilance can protect you from investment fraud
Investing is an excellent way to optimize your assets and build your savings. Whether you are an experienced investor or just beginning a portfolio, being able to tell a good investment from a deceptive one can protect you from costly losses. Investment fraud can...
How can I spot an imposter broker?
Not every investor you talk to is legitimate. Some people have lost a lot of money because they handed money or personal information over to a person or company that turned out to be a scammer. As The Motley Fool explains, scammers have impersonated reputable brokers,...
How social media can result in irresponsible investing
The growth of social media allows entrepreneurs and businesses to communicate to millions of people in seconds. While the use of social media can provide important information quickly, sometimes that information can be unreliable, such as when it comes to investing in...
What are FINRA’s rules regarding supervision?
If you learn that your broker mishandled your investment, you probably not only feel outraged at the broker's actions, but you may wonder why the firm the broker works for did not supervise the broker's activities. It is natural to think that brokerage firms have a...