October 15, 2012

Not Just the Rich and Famous Fall Prey to Investment Fraud

business man holding his head with text asking questions about stock broker misconduct

It's not just the rich or famous anymore. Many scam artists prey on people from all ages and walks of life, often targeting those they already know - perhaps they attend the same church or knitting club - in so-called "affinity fraud," writes Carolyn Said of the Houston Chronicle in a recent article.

Victim advocacy and security groups gathered recently in the San Francisco area for a seminar warning about investment fraud. All said to be wary of offers that sound too good to be true.

"Some people think investment fraud only has to do with stocks or bonds," said Marc Fagel, regional director of the Securities and Exchange Commission. "But any time you invest money and expect you'll get some money back, that's a security."

There are some similarities that Amanda Marshall, U.S. attorney for Oregon, ticked off: "Promises of large above-market returns, an alleged history of making money, promises of no risk, promises investors can pull money out at any time. When the payments stop, the first thing they say is, 'Don't tell authorities.' "

These two common frauds: pump and dump, in which hucksters talk up a "micro stock" on Internet chat boards to lure investors, artificially driving up the stock price; and Ponzi schemes, in which swindlers use money from newer investors to pay earlier investors.

During the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against almost 15,000 defendants, officials said.

This poor economy has brought many more schemes to light, as people who thought they were investing in legitimate enterprises asked for their money back because they needed it.

"Now it's, 'Let me protect you from the dangers of the stock market, with Chinese companies or oil wells,' " Fagel said.

Lately, investments in gold or mining are also favorites of scam artists, said Nicholas Coluccia, director of the Financial Crimes Enforcement Network.

The online fraudsters work by taking small amounts of money at a time, like a $25 wire fee, said Nicole Jones, a counsel for Google.

Carolyn Said writes that there's the "Mugged in London" scam, where an acquaintance's email is hacked and mail sent to all her contacts saying she was robbed and needs money wired to get home.

There's another favorite: Scammers list a vehicle for sale on Craigslist or other site "priced just a little too well," saying they can't meet in person, but claiming the buyer is covered under Google's or eBay's nonexistent vehicle protection program.

"There is even a puppy scam, in which someone says they're moving overseas and their little puppy needs to be adopted" and asks for money for veterinary and other expenses, Jones said.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, represents clients nationwide. For a free consultation on how to potentially recover your financial losses call: 888-760-6552, or you may visit our website and complete the online form at: https://www.securitieslawyer.com.

S H A R E   T H I S   P O S T

Recent Posts

October 13, 2026
Zachary Green Involved In Merit Financial Advisors Client Dispute Re: Omissions

Zachary Cuyler Green, also known as Zach Green (CRD: 5714566), is a securities broker based in Raleigh, North Carolina. A client has claimed investment losses in a complaint involving Green, according to Financial Industry Regulatory Authority (FINRA) BrokerCheck. Green worked with Merit Financial Advisors since May 8, 2025, and Purshe Kaplan Sterling Investments since May […]

October 13, 2026
Adam Taff Of MML Investors Services Named In Client Complaint Over Life Insurance Financing

Adam T. Taff, also known as Adam Taff (CRD: 5933315), is a securities broker and financial advisor in Charlotte, North Carolina. He has been registered with MML Investors Services LLC as a broker since July 26, 2011, and as a financial advisor since November 30, 2012. Taff disclosed a client complaint involving alleged investment losses, […]

October 13, 2026
Donald Robbins Of MML Investors Services Faces Client Complaint Over Premium Financing

Investors might have sustained losses due to securities broker Donald Paul Robbins [CRD: 4364668, Waxhaw, North Carolina], according to disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Evidently, Robbins has been registered with MML Investors Services LLC as a broker since April 8, 2016, and as a financial advisor since April 12, 2016. Keep reading […]

Contact us Nationwide USA
2401 E. Atlantic Blvd., Suite 305, Pompano Beach, FL 33062
Helping clients recover money across the USA
search
Copyright © 2026 Soreide Law Group, PLLC  |  All Rights Reserved