New York, NY -- (ReleaseWire) -- 02/17/2017 --It's a sad and scary fact that individuals become victims of investment mismanagement and stock broker abuse every day. In fact, according to the U.S. Securities and Exchange Commission, there are a number of investment scams that are commonly used to target Americans. Some examples of real investment scams include high-return or risk-free investments, pyramid schemes, Ponzi schemes, promissory notes and among many others.
Cold Spring Advisory Group (CSAG), reputable and professional securities arbitration firm in good standing, recognizes these types of scams and cautions Americans with existing investment accounts to be aware of these types of scams.
About Cold Spring Advisory Group
Cold Spring Advisory Group specializes in stock market and investment loss recovery. In fact, Cold Spring Advisory Group is one of the only firms in the country that provides these types of consulting services. Through the years, the team at Cold Spring Advisory Group has helped hundreds of individuals and investors all over the country with over $200,000 in damages and losses recoup some of their investment and financial losses from broker abuse and investment mismanagement.
The team at Cold Spring Advisory Group has over 25 years of experience in trading, investment and portfolio management, and even branch management at prestigious brokerage firms. With a great deal of experience, the team at Cold Spring Advisory Group believes that this enables them to identify accounts that have been targeted for broker abuse and mismanagement as well as work with clients and investors reach a settlement for their losses and damages.
Common Investment Scams. As mentioned above, there are a number of common investment scams targeting Americans, including the following:
- High-return or risk-free investments. Some brokers and investment advisors may recommend unsuitable products that don't meet investors' financial goals or objectives. These inappropriate recommendations might involve selling high-risk investments for individuals nearing retirement age.
- Pyramid schemes. Pyramid schemes have been around forever, however, brokers are now using them in investment management scenarios. Many brokers will promise incredibly high returns in a short period, getting individuals to hand over money to brokers who are simply using the money for themselves.
- Ponzi schemes. A Ponzi scheme is a specific type of pyramid scheme. In these type of scam, investors hand over money to a broker who uses the money to pay off other investors.
- Promissory notes. A promissory note is a type of debt that is similar to a loan or IOU and is used by a company to raise money. An investor agrees to loan money to a company for a specific period of time. During this time, the company promises to pay the investor a fixed return on the investment. Although some promissory notes are legitimate investment strategies, some companies are in it to scam investors.
- Internet investment fraud. Internet investment fraud is similar to other fraudulent strategies, such as targeting individuals over the phone or through direct mail. In the online world, investors will use digital ads, online newsletters or spam emails and even a website to market false information and attract investors to participate in the scam.
- Affinity fraud. This type of investment scam specifically targets certain groups, such as religious or ethnic communities, the elderly or other professional groups. Scammers will promote affinity fraud while also pretending to be members of the specific group. They influence other community or group members to believe the investment options are real so that they encourage others that the investment is worth it.
In summary, these scams are legitimate, and the Cold Spring Advisory team is available to help identify these signs of broker abuse and mismanagement – among many others – to help clients and investors prepare a case against the responsible parties.
If you have suffered a loss or believe your finances have been mismanaged in any way, then contact the experienced team of experts at Cold Spring Advisory Group today. You can also learn more about the Cold Spring Advisory Group process here.
Call the team at Cold Spring Advisory Group at 212-566-6060 to schedule a free consultation.