Unfortunately, scams occur everywhere and can affect anyone, and the investment world is no exception to this reality. Being aware of common investment scams, however, can greatly reduce the possibility that one ends up being financially misled or taken advantage of. The following information was recently presented by FINRA in hopes of guiding investors and increasing awareness surrounding possible scamming techniques that may be utilized by investment agencies.
FINRA identified these strategies to be the most common ones used to scam investors:
In honor of International Fraud Awareness Week, which ended on November 17th, FINRA has issued a warning containing what has struck some as startling news: a seasoned stockbroker recently fell victim to an investment scam. FINRA chose to highlight this story in an effort to emphasize the fact that anyone can be scammed, even those we would least expect.
Have you suffered investment losses in a Cabot TIC investment? If so, Securities and Stock Fraud Attorney Thomas C. Bradley may be able to help you recover those losses through FINRA arbitration.
Bradley is investigating potential securities fraud claims which have been made against the broker-dealers that improperly or unsuitably recommended tenant in common (TIC) investments to their clients.
Late last month, an investment adviser from MiddleCove Capital LLC in Connecticut was suspected to be guilty of “cherrypicking” trades in order to benefit his own accounts. The adviser, Noah Myers, lost roughly $2 million of his clients’ money while gaining approximately $460,000 for himself. These illegal actions took place over the span of two and a half years and ended in the beginning of 2011.
A recurring trend has appeared over the past seven years among some of the world’s largest nontraded real estate investment trusts, or nontraded REITs. The pattern at hand has been illustrated by the dramatic financial losses of eight of the planet’s largest nontraded REITs, which have lost 37% of their equity value in less than a decade.