Red Flags of Alternative Investment Fraud

Investment fraud is designed to be hard to distinguish from genuine opportunities and are disguised in a multitude of different ways. The scam will have a combination of genuine features mixed in.  This is done to throw you off the scent of a scam at first glance. Stock market fraud and Ponzi schemes are known […]

Troubled Brokers Sometimes Pitch Dangerous Deals

Due Diligence is an essential part of any risky investment. Higher risks offer higher rewards, but market volatility is already enough to worry about, that stress shouldn’t be compounded by an incompetent or unethical broker using your money for dubious purposes. Bad actors, rotten eggs, troubled brokers, whatever you want to call them—they should be […]

Misleading Prospectuses Are a Widespread Problem for Investment Fraud Protection Professionals

Prospectuses are required before a stock, bond or mutual fund is made publicly available for trade. Reviewing the document thoroughly is an important part of investment fraud protection. It is a formal communications document containing information about expenses, gains, losses, holdings, business objectives and more. Fundamentally, it is a guide to help you assess risk, […]

REGULATION D, PRIVATE PLACEMENTS

Rule 501 created the Accredited Investor definition for Investor eligibility for Rule 505 and Rule 506 Regulation D Private Placements. The Accredited Investor definition includes high net worth individuals whose income exceeds either $200,000/year (for single persons) or $300,000/year (for married couples) or a net worth exceeding $1,000,000 (excluding the value of their principal residence).  […]

Self Directed IRAs and Due Diligence

Many Investors Falsely Assume their Self Directed IRA Custodian is Required to Conduct Due Diligence Investigations Investment research is NOT the function of an IRA custodian. The responsibility for researching alternative investments lies with the individual account holder, and performing due diligence properly can mean the difference between investment success or a complete financial loss. […]