Fraudulent schemes are not victimless crimes: investment scams often result in significant losses for investors and undermine the integrity of the financial markets.
Investment sponsors play a vital role in funding all types of ventures, from initial public offerings to commercial real estate projects. However, when an investment sponsor misrepresents products, mismanages investor funds, engages in self-dealing or other misconduct, both investors and market participants can suffer harm.
At Reif Law Group, P.C., we work to help investors and industry professionals recover losses from investment losses throughout the nation.
If you have been harmed due to the misconduct by an investment sponsor or securities industry professional, our legal team can provide you with unmatched representation. We have a proven history of achieving positive outcomes in state and federal court, as well as in arbitration proceedings. Regardless of the forum, our attorneys are committed to protecting your interests. Contact our Los Angeles or Irvine office today to schedule a consultation.
Current Investment Scams Being Pursued by Reif Law Group
RLG has extensive experience prosecuting and defending cases involving a variety of investment schemes, such as:
Micro-Cap Scam
Illegitimate or unregistered companies set up makeshift offices or hire telemarketers or (un)licensed securities professionals to make cold calls and use high-pressure sales tactics to sell over-the-counter bulletin board stocks to clients. The salespeople make false and misleading representations to exaggerate the performance history and forecasts for start-up businesses.
Pump and Dump Scam
Oftentimes described as market manipulation, the pump and dump scam occur when telemarketers or (un)licensed securities professionals promote a stock with false or misleading information to boost the company’s public stock price (the pump). Once the stock price peaks, the scammers sell their shares (the dump); the price typically dives and investors lose their money. The scam usually involves public “penny stocks” otherwise known as low priced stocks.
Ponzi Scheme
Oftentimes involves fraudsters using new investor money to pay existing investors at attractive “guaranteed” interest rates. The high rates are unsustainable from the start and the fraudster does not have the intent to make good. Ponzi schemes typically involve unlicensed persons selling unregistered (non-exempt) securities offerings or promissory notes.
Financial Elder Abuse and Undue Influence
Senior citizens are susceptible to predation by high pressure salespersons. The fraudsters typically make visits to the senior citizens’ homes and offer complimentary reviews of trusts, insurance policies or investment accounts. The fraudsters try to build trust by returning repeatedly to senior citizens’ homes for small talk, meals and token gifts. After the trust is developed, the fraudsters try to sell a variety of products to the seniors such as insurance, investments, home care, living trusts and other safe-sounding products. Financial elder abuse is typically committed by individuals who the senior citizen knows such as relatives, companions, financial advisors, insurance agents and caretakers.
