Investment #fraud – Are You At Risk?
By Alisa Bashaw Published: 11:35 GMT, 1st November, 2014
Investment fraud, or as it is also known as securities fraud or #stock fraud, is the practice of getting investors to purchase or sell stocks or commodities on the basis of false information usually resulting in losses. This is in violation of securities laws. In Hollywood, many movies glorify investment fraud. Movies like “Wolf Of Wall Street”, “Boiler Room” and “Wall Street are a few, however there are real victims that lose their entire life savings to real crooks in the world every day. Many people watch these movies and wrongly think that they would never fall for one of those scams.
Thirty million consumers fall victim to investment fraud every year with the average loss being around $15,000 and retirees are the number one target. The one that coined the term Ponzi scheme was Charles Ponzi (Securities Exchange Company) which cost his victims $20 million dollars in 1920.
Other well known investment fraud cases over the years have been Bernard Ebbers (WorldComm) 2005 cost his investors $100 billion dollars, Jordan Belfort (Stratton Oakmont) cost investors $200 million “Wolf of Wall Street”, Kenneth Lay and Jeffery Skilling (Enron) 2001 loss of $24 billion to investors, and finally the most recent Bernie Madoff (Bernard L. Madoff Investments Securities LLC) investors loss an estimated $65 billion.