Investors must be alert regarding investment scams. They can take several forms; however, securities fraud come under many categories. In a pyramid scheme, fraudsters claim they can alter a small investment into huge profits within a very short time period. However, in reality, they make money just by recruiting new players into the program. This scheme fails eventually when it becomes really difficult to employ new participants. In a Ponzi scheme, fraudsters collect money from investors and use that money to pay a return to the primary investors instead of investing that money as promised.
The Ponzi scheme collapse when fraudsters cannot attract new investors or when many investors want their money back. GPB Capital fraud is similar to a Ponzi scheme. In a pump and Dump fraud, a fraudster purchases shares of a low-priced traded company and spreads information falsely that the share price will increase. The fraudster dumps his share at a very high price and then vanishes. This leaves many people clueless about the stock shares. In an advance fee fraud, the scam begins with an option to pay a high price for the useless stock. To make the deal, you have to send a fee, but you will not see this money.
Investment fraud identification areas
If you want to avoid investment fraud, you should look into the following areas:
- Suspect a person who guarantees you that an investment shall perform in a particular way.
- Several investment scams include unlicensed people who sell unregistered securities.
- An investment that offers steady returns irrespective of the market returns must raise suspicious. The most stable investments go through downs once in a while.
- Legitimate professionals should make you understand how the investment will work. It is important for you to understand the investment you consider.
- Do not invest in something that does not contain documents.
- A reputable investment professional shall never push you in making an investment decision.
Contact security lawyers
GPB capital investors may have lost a lot of money by investing in GPB programs. To recover money from this fraud scheme, you should contact a securities lawyer and discuss with him the legal options that you can take to get back your money. The lawyers shall invest the activities made by GPB capital in their private sales. These lawyers will represent your case and will help you to get back your money.
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