Fraudulent investment schemes can be a massive drain on your bank account. In the past, they have also been the primary reason behind the downfall of many companies. The following are some examples of fraudulent investment schemes throughout US history that have caused major blunders for those involved:
1) Enron Corporation was one company that became bankrupt after their CEO engaged in several fraudulent activities to help boost profits and hide debt.
2) In 1992, Ponzi scheme operator Bernard Madoff was sentenced to 150 years in prison for defrauding investors out of $65 billion with an elaborate pyramid scheme.
3) In 2000, American Home Savings Bank collapsed when it revealed it had invested heavily in sub-prime mortgages, which led to its downfall.
4) In 2012, the SEC charged Texas-based Allen Stanford with orchestrating an $11 billion fraud through his Houston-based company.
5) In 2014, Bitcoin’sBitcoin’s value plummeted after Mt. Gox – then the world’s largest bitcoin exchange – filed for bankruptcy following a $460 million theft of their customers’ bitcoins.
6) In 2016, the SEC charged two New Yorkers with stealing $66 million through a Ponzi scheme.
How Can You Protect Yourself From Fraudulent Investment Schemes:
There are different ways to keep yourself safe from fraudulent investment schemes. For starters, you can conduct thorough research on the company and its executives. Besides, you can ask for references from previous clients or investors that you know before investing in a new investment scheme. Also, be ready to always ask questions about the legitimacy of an investment opportunity, no matter how enticing it may seem at first glance.
Investment Protection Lawyer’sLawyer’s Role:
Investment protection lawyers specialize in representing those who have been wronged by fraudulent investment schemes. They often work closely with the SEC and other regulatory bodies to help them get back what was taken from them due to fraud.
If you have been cheated on by a company in which you invested your hard-earned money, you should talk to an experienced investment protection lawyer who possesses knowledge of dealing with such matters and delivering the desired results to clients in no time here.