If you have a financial advisor or are involved in an investment program, you expect that the person giving you advice is qualified to do so and has the best intentions. While this is likely to be the case, there are, unfortunately, many investment scams and instances of fraudulent investment advice in New York.
If you have not been making fruitful investments as a result of professional advice, or if you are starting to doubt the legitimacy of the investment scheme, it is important that you realize this early on. By understanding some of the most common securities fraud red flags, you may be able to recognize your situation as a case of securities fraud and take action swiftly.
You are made to follow strategies that you don't understand
A financial advisor should be there to advise and educate you, not confuse you. If the strategies being advised are too complex to understand, you should consider stepping away from the situation.
The advisor or scheme manager is pushy
If you feel under pressure to commit to a scheme or to invest more, this is a major red flag. You should feel that you have full control of the investment decisions that you make.
You are given guarantees
No one can guarantee the outcome of an investment. Therefore, if you are made promises about the outcome of your investment, you should be very critical of this.
If you are worried that you are being manipulated or subject to securities fraud, it is important that you take action to understand your situation better. Applying the law to fraudulent situations can be beneficial for the victim.