Investment Fraud Lawyer
Consult with a trusted and seasoned investment fraud lawyer at Patil Law after you or your loved one has suffered from fraudulent and dubious investment practices.
The law firm’s founder, Chetan Patil, has over 15 years of extensive experience in diverse, complex disputes and transactions across the country. To date, Patil Law has recovered over $25 million on behalf of its clients.
One of the most notable lawsuits involved a $5 million settlement for clients who were improperly sold multiple illiquid Real Estate Investment Trusts (REITs) and who were victims of forgery. Feel free to browse through the firm’s impeccable track record.
Chetan specializes in litigations, trials, arbitrations, and appeals of complex securities, Financial Industry Regulatory Authority (FINRA) cases, and financial and business disputes, with an emphasis on securities, financial services, and financial regulatory law.
Why Choose Patil Law?
Patil Law’s clients will benefit from the depth and breadth of Chetan’s legal experience and judgment. He has handled and overseen over a thousand litigation and arbitration cases nationwide in federal and state courts and arbitration forums.
As a testament to their deep care and commitment, Chetan and his team of legal experts travel extensively for their clients all around the country.
They have represented defrauded investors, family trusts, family offices, public and private companies of all kinds, including banks and other financial institutions, broker-dealers, registered investment advisors, advisory firms, and securities brokers.
How Much Do We Charge: We believe in accessible justice. Thus, we operate on a contingency fee arrangement. You do not pay any legal fees upfront. We only get paid if we secure a favorable settlement or verdict for our clients.
Contact Us Now: If you or a loved one has been a victim of insurance fraud, you don’t have to stay silent anymore. Patil Law is here to help you fearlessly pursue justice and compensation against those who have wronged and scammed you for your hard-earned money.
Call us now at (800) 950-6553 or send us a message through our secure and confidential online form. Our team of compassionate professionals is always on standby to provide immediate assistance.
Common Types of Investment Fraud Cases
We’ve seen countless times how even the most discerning person can fall prey to tempting “quick money” schemes. Before making any investment, it’s highly recommended that you perform due diligence and ensure that both the investment and the sales agent are registered and licensed.
The following are the top threats to investors, as determined by surveying state securities regulators to identify the most problematic products, practices or schemes:
Cryptocurrency-Related Investments
In 2017, cryptocurrencies burst into the public eye, with the values of some virtual coins and tokens skyrocketing, led by Bitcoin.
Shortly after, new cryptocurrencies, coin exchanges, and related investment products became rampant. Stories of “crypto millionaires” attracted investors to try their hand at investing in cryptocurrencies or crypto-related investments.
State authorities have warned that some of these financial products may be nothing more than public-facing fronts for Ponzi schemes and other frauds. Since they do not fall neatly into the existing federal or state regulatory framework, abusive promoters have an easier time defrauding buyers.
Ponzi Scheme
A ‘Ponzi’ scheme, aptly named after 1920s swindler Charles Ponzi, is a ploy wherein earlier investors are repaid through the funds deposited by subsequent investors.
In this type of scheme, the underlying investment claims are usually entirely fictional; very few, if any, actual physical assets or investments generally exist.
As the number of total investors grows and the supply of potential new investors dwindles, there is not enough money to pay off promised returns and cover investors who try to cash out.
According to the Washington State Department of Financial Institutions, a Ponzi bubble will burst when the con artist simply cannot keep up with the payments investors are expecting to receive.
When the scheme collapses, as it always does, investors may lose their entire investment in the fraud. In many cases, the perpetrator will have spent investment money on personal expenses, depleting funds and accelerating the bursting of the bubble.
Precious Metals And Coins Investment Scam
The Federal Trade Commission explained that precious metals and coins investment scams often involve scammers calling themselves “metal dealers” or “rare coins merchants.” Whether the market is up or down, they’ll tell you there’s no better time than now to invest.
Their goal is to create a sense of urgency and to convince you to trust them. Scammers lie about their credentials and experience in these markets. In the end, they often fail to deliver what they promise. Instead, they take your money for themselves.
Promissory Notes
A promissory note represents a written commitment to repay a specified amount of money at a designated future date or upon demand. Typically, these notes include interest payments either periodically before maturity or upon maturity itself.
While promissory notes from legitimate issuers can offer reasonable investment returns with an acceptable level of risk, state securities regulators have flagged a concerning number of promissory note fraud cases.
Short-term promissory notes, particularly those with durations under nine months, have been a hotspot for fraudulent activities identified by state securities regulators.
These notes, often offered by non-existent companies, promise disproportionately high returns, sometimes exceeding 15 percent monthly, with minimal risk.
Pyramid Scheme or Fraudulent Multi-Level Marketing
Similar to a Ponzi scheme, a pyramid scheme is a fraudulent multi-level marketing strategy whereby investors earn potential returns by recruiting more and more other investors.
It must be noted that multi-level marketing strategies are not intrinsically fraudulent, and there are many legitimate multi-level marketing companies offering various consumer products and services.
What makes a multi-level marketing strategy into a fraudulent pyramid scheme is the lack of a genuine underlying investment enterprise or product upon which the strategy can hope to be sustained.
Real Estate Investments
State securities regulators caution against real estate investment seminars, often aggressively marketed as alternative retirement planning options. Two common investment pitches in those events involve “hard-money lending” and “property flipping.”
Hard-money lending involves real estate investments financed outside traditional bank borrowing, often offering high-interest rates. In these transactions, investors, lenders, and borrowers are involved.
Private lenders raise funds from investors to lend to borrowers, sometimes pooling investments into securities subject to regulatory protections. Unlike traditional loans, hard-money loans are primarily based on property value, which can complicate recouping investments if borrowers default on their payments.
Property flipping involves purchasing distressed real estate, renovating it, and reselling it for profit. While lawful, financing flips through borrowed funds or external investments can be prone to fraud.
Scammers may deceive investors about property value or profit potential or misuse borrowed/invested funds. They might also involve unwitting investors as “straw buyers” with outside banks or mortgage lenders, leveraging investors’ names and credit scores to facilitate their scams.
Social Media Or Internet Investment Fraud
Social networks, like Facebook, Instagram, LinkedIn, and others, facilitate connections based on shared interests, hobbies, and beliefs, spanning global communities. While these platforms foster genuine connections, they also provide fertile ground for con artists seeking victims.
Con artists establish credibility and swiftly gain trust among group members by actively engaging in online social networks. With access to users’ personal profiles containing sensitive information, such as birthdates, addresses, and employment history, scammers craft highly targeted pitches.
Exploiting the ease with which individuals share personal details online, con artists propagate scams within social networks, leveraging the networks of their initial targets to expand their reach.
How Can I Recover From Investment Fraud?
The emotional and psychological toll of financial fraud can extend well beyond lost resources. A study funded by the FINRA Foundation found that nearly two-thirds of fraud victims experience at least one severe emotional consequence, including stress, anxiety, insomnia and depression.
Perpetrators will frequently dispose of your money immediately after taking it, so you might never get it back. However, your recovery is about more than your finances.
FINRA advised that it’s also about protecting your future financial health and assets and finding ways for you to recover emotionally from the crime.
Legal Remedies Against Investment Fraud
One of the most important things is to know your rights and defend them accordingly. Federal and, in some cases, state laws give rights to victims of financial crime.
The North American Securities Administrators Association (NASAA) published an “Investor Bill of Rights” so you can confirm your cause of action.
As for recovering your lost assets, it can be a difficult process, but there are legitimate avenues that you can pursue. You may be able to recoup some of your lost assets through a civil lawsuit, arbitration or mediation. It’s best to contact a seasoned investment fraud attorney to clarify your legal options.
Contact An Experienced Investment Fraud Lawyer Now
Hire a reputable investment fraud lawyer at Patil Law to fight for your rights as you focus on your financial recovery. We’ll fiercely stand up to organized crime groups and syndicates and do our best to advocate for your interests. We have vast resources to take these scammers to court when necessary.
Chetan Patil and his legal team understand the public’s temptation to try to secure quick and easy money. While there’s no foolproof method to safeguard against investment scams, you can minimize the risk of being their latest prey by avoiding drastic decisions.
However, if you’ve been deceived, seeking legal representation is essential. All hope is not lost. Call us now at (800) 950-6553 for a free consultation, or send us a message through our secure and confidential online form.