Investment fraud can come in many different forms and usually with the promise of a high return on an investment. Common types of investment fraud include boiler room fraud, ponzi or pyramid fraud.
If you have been accused of investment fraud of any nature, it is vital that you seek advice from an experienced solicitor as soon as possible. The penalties involved in investment fraud can be severe, so it is vital that you instruct a solicitor who can prepare a robust defence should you need it.
The team of solicitors in Farleys’ Fraud and Business Crime department have had many years’ experience in defending clients accused of investment fraud and can provide the specialist advice and representation you need.
Types of Investment Fraud
A boiler room fraud is whereby a scam organisation offers shares in a company that either does not exist, or if it does exist, is not trading in a way that would result in the yield promised. Quite often the organisations offering the shares are run from other countries and potential investors are targeted by way of cold calling.
A ponzi fraud works on the basis of investors being paid out by new investors. Short–term high returns entice new investors to the scheme, and the scheme continues so long as there are new investors to keep it afloat.
A pyramid fraud works in a similar way except the investors then recruit new investors.
As the investment fraud often involves an international element, extradition proceedings can be of issue.